This study investigates how transnational interorganizational projects (IOPs) cope with institutional complexity and voids. A case study of a cross-border gas pipeline suggests the coexistence of institutional complexity and voids that amplify collaboration hazards in developing transnational IOPs. Institutional complexity harms the feasibility of a unified form of organizing, whereas institutional voids sabotage the ability of involved organizations to collaborate in a market-based approach. A hybrid organization featured by modular structure, complementary advantages, and system integrator, was designed to navigate complex institutional environments. This study contributes to the project–organization–institution linkage by depicting the impacts of institutions on project organizing.
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