Geopolitics and Strategic Management in the Global

Geopolitics and Strategic Management in the Global Economy Angelo Presenza University of Molise, Italy Lorn R. Sheehan Dalhousie University, Canada

A volume in the Advances in Business Strategy and Competitive Advantage (ABSCA) Book Series

Published in the United States of America by IGI Global Business Science Reference (an imprint of IGI Global) 701 E. Chocolate Avenue Hershey PA, USA 17033 Tel: 717-533-8845 Fax: 717-533-8661 E-mail: [email protected] Web site: http://www.igi-global.com Copyright © 2018 by IGI Global. All rights reserved. No part of this publication may be reproduced, stored or distributed in any form or by any means, electronic or mechanical, including photocopying, without written permission from the publisher. Product or company names used in this set are for identification purposes only. Inclusion of the names of the products or companies does not indicate a claim of ownership by IGI Global of the trademark or registered trademark. Library of Congress Cataloging-in-Publication Data Names: Presenza, Angelo, 1975- editor. | Sheehan, Lorn R., 1964- editor. Title: Geopolitics and strategic management in the global economy / Angelo Presenza and Lorn R. Sheehan, editors. Description: Hershey, PA : Business Science Reference, [2018] | Includes bibliographical references and index. Identifiers: LCCN 2017008229| ISBN 9781522526735 (hardcover) | ISBN 9781522526742 (ebook) Subjects: LCSH: Strategic planning. | International business enterprises--Management. Classification: LCC HD30.28 .G45 2018 | DDC 658.4/012--dc23 LC record available at https://lccn.loc.gov/2017008229 This book is published in the IGI Global book series Advances in Business Strategy and Competitive Advantage (ABSCA) (ISSN: 2327-3429; eISSN: 2327-3437)

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Chapter 9

Project and Risk Management in a Global Context: The Importance of Cultural Risk Mirko Perano Reald University of Vlore (ASAR), Albania Bice Della Piana University of Salerno, Italy Gian Luca Casali Queensland University of Technology, Australia

ABSTRACT Project management is one of the possible ways to improve the organizational reputation and create value. The control achievable on each project’ constrains (time, cost and quality) and the actions consequent by assessment process can represent in theory a guarantee for the success of a project. In practical, there are many risks capable of upsetting the project dynamics leading to failures. Risk management, or the specific area of knowledge of Project Risk Management, are useful to prevent this possible occurrence. The global dimension of organizations’ networks that use PM, moves this quality to the project that this organizations do. A definition of global project is provided as well as also the consequent considerations about the cross-cultural aspect within the peoples involved in this type of project. It is framed and proposed a new category of risk related to management of global project: cultural risk analysis.

INTRODUCTION Project management is a useful discipline that among other things can reduce the project complexity and, maximize the knowledge and control on each activities. What makes the process complex is the fact that each activity is under the constraints of three important variables: costs, time and quality. Through the evolution of project management (PM), knowledge and models have moved continuously between conceptual and empirical research. Under the social point of view, “projects are complex social settings DOI: 10.4018/978-1-5225-2673-5.ch009

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Project and Risk Management in a Global Context

CONCLUSION The management of global project require particular attention in order to control the complexity deriving from the global reach of the project. According to Laszlo (1994), Thomas (2000), Hodgson, Cicmil (2000), the model of PM is not quite adequate to manage, with tools and actual techniques, the actual project complexity. Many complicated projects are managed with inadequate tools, methods and techniques (in terms of scale, heterogeneity, etc…) or only have ambiguous goals. It is simple to think that this projects shortly will become complex. Around the topic of project complexity scholars put attention in order to catch (often with a quantitative analysis) the project complexity factors. A lot of this research constitute the base of knowledge of this work. The definition of global project/program, characterized by team members from different cultures and languages that working in different nations around the globe, raises a need to have a comprehension of a new aspect that can help to better investigate the project complexity. Starting from this definition of global project and also consider the project dimension and cross cultural as project complexity factors bring to a conclusion that cross cultural project can be consider as a project complexity factor and can constitute a single risk that should be considered in the area of PRM. The cross cultural project risk analysis can support to manage project in global context, or manage global project with a different level of complexity or risk and it can help to achieve better the primary project objective in terms of costs, time and quality.

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