Skip to main content
SpringerLink
Log in

Identifying Value in the Engineering Enterprise

  • Chapter
  • First Online:
The Engineering-Business Nexus

Part of the book series: Philosophy of Engineering and Technology ((POET,volume 32))

Abstract

The investigation presented in this chapter was originally inspired by the authors’ observations of engineers in Australia, India, Pakistan, and Portugal that suggested the value aspect of their work was rarely addressed. This is somewhat surprising given that value creation lies at the core of any business and nearly all of the engineers observed were working for business enterprises. This initial observation led us to examine what turned out to be relatively sparse literature relating to engineering value, how the value of engineering work is perceived within the context of entrepreneurship and innovation research and how students are introduced to this in engineering education programs and entrepreneurship courses. We were led to conclude that the concept of value creation makes only a tenuous and indistinct appearance at the far periphery of engineering discourse. Given the critical importance of business investment for almost all engineering enterprises, it is surprising that the research literature is almost silent on this issue. In the study we identify ways that engineers create and protect value that are not usually mentioned in the innovation-centred approach typical of entrepreneurship research and education emanating from Schumpeter’s early twentieth century ideas that still shape business and economics today. We hypothesize that this lack of awareness of value creation by engineers may be associated with low success rates of major engineering capital expansion projects such as process plants, infrastructure construction, and defence equipment acquisitions. Furthermore, it could help to explain some of the everyday frustrations encountered by engineers, employers and investors in engineering enterprises and low rates of productivity improvement in developing countries.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    For further information, see articles published at www.ipaglobal.com, such as http://www.ipaglobal.com/new-approaches-to-measuring-engineering-practices

  2. 2.

    Merrow, E. Presentation to Engineers Australia, Perth, October 2013.

  3. 3.

    Appropriate – the meaning here conveys a form of learning, rather than taking possession of an artefact.

  4. 4.

    The first author interviewed staff from commercial research organizations that provide project owners with independent reviews of such projects. Participants reported that owners exhibit a degree of over-confidence in making decisions to proceed with their projects. Owners tend to discount advice on the likelihood that a project will succeed, assuming that advice from external reviewers on measures needed to address shortcomings is either unduly pessimistic, or will be acted on in the course of the project.

  5. 5.

    Meaning to assign an inferior value

References

  • Ács, Z. J. (2010). Entrepreneurship and economic development: The valley of backwardness. Annals of Innovation and Entrepreneurship, 1(1). https://doi.org/10.3402/aie.v1i15641.

  • Ács, Z. J., Autio, E., & Szerb, L. (2014). National Systems of Entrepreneurship: Measurement issues and policy implications. Research Policy, 43(3), 476–494. https://doi.org/10.1016/j.respol.2013.08.016.

    Article  Google Scholar 

  • Adner, R., & Kapoor, R. (2010). Value creation in innovation ecosystems: How the structure of technological interdependence affects firm performance in new technology generations. Strategic Management Journal, 31, 306–333. https://doi.org/10.1002/smj.821.

    Article  Google Scholar 

  • Amit, R., & Zott, C. (2001). Value creation in E-business. Strategic Management Journal, 22, 493–520. https://doi.org/10.1002/smj.187.

    Article  Google Scholar 

  • Barley, S. R. (2005). What we know (and mostly don’t know) about technical work. In S. Ackroyd, R. Batt, P. Thompson, & P. S. Tolbert (Eds.), The Oxford handbook of work and organization (pp. 376–403). Oxford: Oxford University Press.

    Google Scholar 

  • Baumol, W. J. (1990). Entrepreneurship: Productive, unproductive and destructive. Political Economy, 98(5 part 1), 893–921.

    Article  Google Scholar 

  • Bea, R. (2000). Human and organizational factors in the design and reliability of offshore structures. PhD, Centre for Oil and Gas Engineering, The University of Western Australia.

    Google Scholar 

  • Besterfield-Sacre, M. E., Ozaltin, N. O., Robinson, A., Shuman, L. J., Shartrand, A., & Weilerstein, P. (2013). Factors related to entrepreneurial knowledge in the engineering curriculum. Journal of Engineering Entrepreneurship, 4(1), 31–38 https://doi.org/10.7814/jeen5v4p3borssw.

    Article  Google Scholar 

  • Besterfield-Sacre, M. E., Zappe, S. E., Shartrand, A., & Hochstedt, K. (2016). Faculty and student perceptions of the content of entrepreneurship courses in engineering education. Advances in Engineering Education, 5(1), P4.

    Google Scholar 

  • Bhutta, Z. A. (2011). Pakistan national nutrition survey. Karachi: Aga Khan University https://www.humanitarianresponse.info/system/files/documents/files/59_National%20Nutrition%20Survey-2011.pdf. Accessed 1 May 2016.

    Google Scholar 

  • Boyd, T. (2013). Still lucky, but useless at settling projects. Australian Financial Review, p 1.

    Google Scholar 

  • Carlson, W. B. (1988). Academic entrepreneurship and engineering education: Dugald C. Jackson and the MIT-GE cooperative engineering course, 1907–1932. Technology and Culture, 29 (3), 536–567. 0040-165X/88/2903-0006.

    Article  Google Scholar 

  • Carrasco Torres, V. (2014). Evaluation of highway agency approaches to consultant oversight for construction engineering and inspection services. Master of Civil Engineering Masteri of Civil Engineering, Civil Engineering, University of Colorado.

    Google Scholar 

  • Costa, C., & Baptista, R. (2012). The molds cluster in Portugal. CEG-IST Working Paper. 42.

    Google Scholar 

  • Creed, C. J., Suuberg, E. M., & Crawford, G. P. (2002). Engineering entrepreneurship: An example of a paradigm shift in engineering education. Journal of Engineering Education, 91(2), 185–195. https://doi.org/10.1002/j.2168-9830.2002.tb00691.x.

    Article  Google Scholar 

  • Crossley, M. (2011). Business skills in engineering practice. Bachelor of Engineering, School of Mechanical Engineering, The University of Western Australia.

    Google Scholar 

  • D’Arcy, P., & Gustafsson, L. (2012). Australia’s productivity performance and real incomes. Reserve Bank of Australia Bulletin (June Quarter), 23–35.

    Google Scholar 

  • Dolphin, T., & Hatfield, I. (2015). The missing pieces: Solving Britain’s productivity puzzle. London: Institute for Public Policy Research http://www.ippr.org/publications/the-missing-pieces-solving-the-uks-productivity-puzzle.

    Google Scholar 

  • Domal, V. (2010). Comparing engineering practice in South Asia and Australia. PhD thesis, Mechanical and Chemical Engineering, The University of Western Australia.

    Google Scholar 

  • Duval-Couetil, N. (2013). Assessing the impact of entrepreneurship education programs: Challenges and approaches. Journal of Small Business Management, 51(3), 394–409. https://doi.org/10.1111/jsbm.12024.

    Article  Google Scholar 

  • Finelli, C. J., Borrego, M., & Rasoulifar, G. (2015). Development of a taxonomy of keywords for engineering education research. Journal of Engineering Education, 104(4), 365–387. https://doi.org/10.1002/jee.20101.

    Article  Google Scholar 

  • Franke, N., & Piller, F. (2004). Value creation by toolkits for user innovation and design: The case of the watch market. Journal of Product Innovation Management, 21, 401–415. https://doi.org/10.1111/j.0737-6782.2004.00094.x.

    Article  Google Scholar 

  • Gilbuena, D. M., Sherrett, B. U., Gummer, E. S., Champagne, A. B., & Koretsky, M. D. (2015). Feedbackon professional skills as enculturation into communities of practice. Journal of Engineering Education, 104(1), 7–34. https://doi.org/10.1002/jee.20061.

    Article  Google Scholar 

  • Gouws, L. (2014). The extent and nature of problems encountered in maintenance: The story behind the text. PhD thesis, Mechanical and Chemical Engineering, The University of Western Australia.

    Google Scholar 

  • Gouws, L., & Gouws, J. (2006). Common pitfalls with SAP™-based plant maintenance systems. 2006 world congress on engineering asset management, Surfer’s Paradise, Queensland, 10–14 July.

    Google Scholar 

  • Gouws, L., & Trevelyan, J.P. (2006). Research on influences on maintenance management effectiveness. 2006 world conference on engineering asset management, Surfer’s Paradise, Queensland, 10–14 July.

    Google Scholar 

  • Hägerby, M., & Johansson, M. (2002). Maintenance performance assessment: Strategies and indicators. MSc, Department of Production Economics, Linköping Institute of Technology.

    Google Scholar 

  • Hardisty, P. E. (2010). Environmental and economic austainability. In M. C. Newman (Ed.), Environmental and ecological risk assessment. Boca Raton: CRC – Taylor & Francis.

    Google Scholar 

  • Jacobides, M. G., Knudsen, T., & Augier, M. (2006). Benefiting from innovation: Value creation, value appropriation and the role of industry architectures. Research Policy, 35, 1200–1221. https://doi.org/10.1016/j.respol.2006.09.005.

    Article  Google Scholar 

  • Jensen, J. S., & Jørgensen, U. (2018). Valuation and market creation: The economic dynamics of socio-material. Unpublished manuscript, personal communication available on Request.

    Google Scholar 

  • Katz, J. A. (2003). The chronology and intellectual trajectory of American entrepreneurship education. Journal of Business Venturing, 18, 283–300. https://doi.org/10.1016/S0883-9026(02)00098-8.

    Article  Google Scholar 

  • Kelm, K. M., & Narayanan, V. K. (1995). Shareholder value creation during R&D innovation and commercialization stages. Academy of Management Journal, 38(3), 770–786.

    Article  Google Scholar 

  • Köbler, F., Fähling, J., Vattai, A., Leimeister, J.M., & Kremar, H. (2009). Analysis of value creation through product-service-systems in the German medical engineering industry. First International Symposium of Service Sciences 2009 (ISSS 2009), Berlin.

    Google Scholar 

  • Kohers, N., & Kohers, T. (2000). The value creation potential of high-tech mergers. Financial Analysts Journal, 56(3), 40–50. https://doi.org/10.2469/faj.v56.n3.2359.

    Article  Google Scholar 

  • Kumar, A., Moss, A., & Johnson, E. (2016). Engineering UK 2016: The state of engineering. London: Engineering UK Accessed 29 Apr 2016.

    Google Scholar 

  • Lavie, D. (2007). Alliance portfolios and firm performance: A study of value creation and appropriation in the US software industry. Strategic Management Journal, 28, 1187–1212. https://doi.org/10.1002/smj.637.

    Article  Google Scholar 

  • Manyika, J., Woetzel, J., Dobbs, R., Remes, J., Labaye, E., & Jordan, A. (2015). Global growth: Can productivity save the day in an aging world? London: McKinsey Global Institute http://www.mckinsey.com/mgi. Accessed 1 May 2016.

    Google Scholar 

  • McNair, C. J., Polutnik, L., & Silvi, R. (2001). Cost management and value creation: The missing link. European Accounting Review, 10(1), 33–50. https://doi.org/10.1080/09638180122848.

    Article  Google Scholar 

  • Mehravari, D. (2007). Systematic checking in engineering design. Bachelor of Engineering, School of Mechanical Engineering, The University of Western Australia.

    Google Scholar 

  • Merrow, E. W. (2011). Industrial megaprojects: Concepts, strategies, and practices for success. New Jersey: Wiley.

    Google Scholar 

  • Mizik, N., & Jacobson, R. (2003). Trading off between value creation and value appropriation: The financial implications of shifts in strategic emphasis. Journal of Marketing Education, 67(1), 63–76.

    Article  Google Scholar 

  • Moore, S. B., & Manring, S. L. (2009). Strategy development in small and medium sized enterprises for sustainability and increased value creation. Journal of Cleaner Production, 17, 276–282. https://doi.org/10.1016/j.jclepro.2008.06.004.

    Article  Google Scholar 

  • Murphy, K. M., Shleifer, A., & Vishny, R. W. (1993). Why is rent-seeking so costly to growth? American Economic Association Proceedings, 83(2), 409–414.

    Google Scholar 

  • Nair, S., & Trevelyan, J.P. (2008). Current maintenance management methods cannot solve engineering asset maintenance history data quality problems. ICOMS Asset Management Conference, Fremantle, Western Australia, May 27–29.

    Google Scholar 

  • Ng, I.C.L., Parry, G., Smith, L.A., & Maull, R.S. (2010). Value co-creation in complex engineering service systems: Conceptual foundations. In Forum markets and marketing: Extending the service dominant logic. University of Exeter Business School Discussion Papers in Management 10/04.

    Google Scholar 

  • Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organization Science, 5(1), 14–37. https://doi.org/10.1287/orsc.5.1.14.

    Article  Google Scholar 

  • Orr, J. (1996). Talking about machines: An ethnography of a modern job. In S. Barley (Ed.), Collection on technology and work. Ithaca: Cornell University Press.

    Google Scholar 

  • Pessôa, M.V.P., Loureiro, G., & Alves, J.M. (2006). A value creation planning method to complex engineering products development. 13th ISPE International Conference on concurrent engineering: Research and applications. Antibes.

    Google Scholar 

  • Phillips, R., Neailey, K., & Broughton, T. (1999). A comparative study of six stage-gate approaches to product development. Integrated Manufacturing Systems, 10(5), 289–297.

    Article  Google Scholar 

  • Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance. New York: Free Press.

    Google Scholar 

  • Porter, M.E., & Kramer, M.R. (2011). Creating shared value. Harvard Business Review, 15.

    Google Scholar 

  • Porter, M. E., Sachs, J., & McArthur, J. W. (2002). Executive summary: Competitiveness and stages of economic development. In K. Schwab, M. E. Porter, & J. Sachs (Eds.), The global competitiveness report 2001–2002. New York: Oxford University Press.

    Google Scholar 

  • Quinlan, K. M. (2002). Scholarly dimensions of academics’ beliefs about engineering education. Teachers & Teaching: Theory and Practice, 8(1), 41–64. https://doi.org/10.1080/13540600120110565.

    Article  Google Scholar 

  • Rankin, Y.A., Boyette, N.H., Cheng, I.K., & Krishna, V. (2009). The pursuit of value Co-creation: Engineering service applications to achieve customer satisfaction. IEEE/INFORMS Conference on Service Operations, Logistics and Informatics, 2009. SOLI ‘09., Chicago, 22–24 July.

    Google Scholar 

  • Romer, P. (1990). Endogenous technological change. Political Economy, 98(5 part 2), S71–S102.

    Article  Google Scholar 

  • Romer, P. (2010). Which parts of globalization matter for catch-up growth? NBER Working Paper, 15755, 15.

    Google Scholar 

  • Schumpeter, J. (1911:1934). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle. Translated from the 1911 original German, heorie der wirtschaftlichen Entwicklung. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Schumpeter, J. (1942, 1950). Capitalism, socialism and democracy. New York: Harper & Row.

    Google Scholar 

  • Shimomura, Y., Sakao, T., Sundin E., & Lindahl, M. (2006). Service engineering: A novel engineering discipline for high added value creation. International Design Conference – Design 2006, Dubrovnik, Croatia, 15–18 May.

    Google Scholar 

  • Singh, R. (2015). How do engineers perceive the notion of value: A discussion of value in engineering practice? Bachelor of Engineering, School of Mechanical Engineering, The University of Western Australia.

    Google Scholar 

  • Sköld, D., & Olaison, L. (2012). Excessive value creation: Under the tyranny of a new imaginary. In D. Jemielniak & A. Marks (Eds.), Managing dynamic technology-oriented businesses: High tech organizations and workplaces (pp. 192–208). Hershey: IGI Global.

    Chapter  Google Scholar 

  • Trevelyan, J. P. (2007). Technical coordination in engineering practice. Journal of Engineering Education, 96(3), 191–204.

    Article  Google Scholar 

  • Trevelyan, J. P. (2010). Reconstructing engineering from practice. Engineering Studies, 2(3), 175–195. https://doi.org/10.1080/19378629.2010.520135.

    Article  Google Scholar 

  • Trevelyan, J.P. (2012). Understandings of value in engineering practice. Frontiers in Education 2012, Seattle.

    Google Scholar 

  • Trevelyan, J. P. (2013). Observations of South Asian engineering practice. In B. Williams, J. D. Figueiredo, & J. P. Trevelyan (Eds.), Engineering practice in a global context: Understanding the technical and the social (pp. 223–244). Leiden: CRC/Balkema.

    Google Scholar 

  • Trevelyan, J. P. (2014). The making of an expert engineer. London: CRC Press/Balkema – Taylor & Francis.

    Book  Google Scholar 

  • Trevelyan, J. P. (2016). Extending engineering practice research with shared qualitative data. Advances in Engineering Education, 5(2), 31 http://advances.asee.org/publication/extending-engineeringpractice-research-with-shared-qualitative-data/.

    Google Scholar 

  • Trevelyan, J. P., & Tilli, S. (2007). Published research on engineering work. Journal of Professional Issues in Engineering Education and Practice, 133(4), 300–307. https://doi.org/10.1061/(ASCE)1052-3928(2007)133:4(300).

    Article  Google Scholar 

  • Trevelyan, J.P., & Tilli, S. (2008). Longitudinal study of Australian engineering graduates: Perceptions of working time. American Society for Engineering Education Annual Conference, Pittsburgh, June 20–22.

    Google Scholar 

  • Tribunal de contas (2016). Relatório n.° 1/2016 – AUDIT. 1.ª S., Tribual de Contas, Lisboa, 2016. Accessed 17 Nov 2016. http://www.tcontas.pt/pt/actos/rel_auditoria/2016/1s/rel001-2016-1s.pdf.

  • Walter, A., Ritter, T., & Gemünden, H. G. (2001). Value creation in buyer-seller relationships: theoretical considerations and empirical results from a supplier’s perspective. Industrial Marketing Management, 30, 365–377.

    Article  Google Scholar 

  • Williams, B., & Figueiredo, J. (2015). Interaction in the engineering workplace: Examining a network of actors representation. 2015 IEEE International Conference on Engineering, Technology and Innovation/ International Technology Management Conference (ICE/ITMC), Belfast, 22–24 June.

    Google Scholar 

  • World Bank (2016). Data on agricultural employment. Accessed 1 May. http://data.worldbank.org/indicator/SL.AGR.EMPL.ZS.

  • Yannou, B., & Bigand, M. (2006). A curriculum of value creation and management in engineering. European Journal of Engineering Education, 29(3), 355–366. https://doi.org/10.1080/03043790310001658550.

    Article  Google Scholar 

  • Youngman, M., Oxtoby, R., Monk, J. D., & Heywood, J. (1978). Analysing jobs. Farnborough: Gower Press.

    Google Scholar 

  • Zhang, Y., & Gregory, M. (2011). Managing global network operations along the engineering value chain. International Journal of Operations and Production Management, 31(7), 736–764. https://doi.org/10.1108/014435771111144832.

    Article  Google Scholar 

  • Zhu, K., Kraemer, K. L., Xu, S., & Dedrick, J. (2004). Information technology payoff in e-business environments: An International perspective on value creation of e-business in the financial services industry. Journal of Management Information Systems, 21(1), 17–54.

    Article  Google Scholar 

Download references

Acknowledgements

The authors wish to acknowledge the willing participation of engineering practitioners in Australia, Pakistan, India and Portugal in providing data for our studies and we hope to have done justice to the trust they extended by inviting us into their workplaces and taking time to share their work practices with us. Funding from the Australian government and the Portuguese Fundação para a Ciência e a Tecnologia supported studies by the authors that provided much of the data for this chapter.

Author information

Authors and Affiliations

  1. Mechanical Engineering Department, The University of Western Australia, Perth, Western Australia, Australia

    James Trevelyan

  2. CEG-IST, Instituto Superior Técnico, Universidade de Lisboa, Lisbon, Portugal

    Bill Williams

Authors
  1. James Trevelyan
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Bill Williams
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to James Trevelyan .

Editor information

Editors and Affiliations

  1. Department of Development & Planning, Aalborg University, Aalborg, Denmark

    Steen Hyldgaard Christensen

  2. Département Mesures Physiques, Université de Lille – IUT « A » de Lille, Villeneuve d’Ascq Cedex, France

    Bernard Delahousse

  3. Département des sciences de l’éducation, UFR DECCID, Université de Lille, Villeneuve-d’Ascq, France

    Christelle Didier

  4. Faculty of Engineering Technology, Technologiecampus Gent, KU Leuven, Gent, Belgium

    Martin Meganck

  5. Academic Affairs, Digital & Learning Transformation, Dublin Institute of Technology, Dublin 2, Ireland

    Mike Murphy

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Trevelyan, J., Williams, B. (2019). Identifying Value in the Engineering Enterprise. In: Christensen, S.H., Delahousse, B., Didier, C., Meganck, M., Murphy, M. (eds) The Engineering-Business Nexus. Philosophy of Engineering and Technology, vol 32. Springer, Cham. https://doi.org/10.1007/978-3-319-99636-3_14

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-99636-3_14

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-99635-6

  • Online ISBN: 978-3-319-99636-3

  • eBook Packages: EducationEducation (R0)

Publish with us

Policies and ethics

Search

Navigation