Governing for sustainable value co-creation in hydropower EPC megaprojects: insights from dual cases in China

Purpose Hydropower engineering-procurement-construction (EPC) megaprojects are characterized by persistent coordination and integration challenges within project consortia. This study aims to examine the critical governance factors that influence internal coordination and integration and explore how these factors interact to shape sustainable value co-creation. Design/methodology/approach Employing an exploratory dual-case study grounded in value co-creation theory and the relational coordination framework, this study analyzed primary and secondary data from two representative hydropower EPC megaprojects. Grounded theory methodology with substantive coding was applied to extract critical factors of integrated governance. Findings This study presents a theoretical framework that explains the critical governance factors influencing sustainable value co-creation in hydropower EPC megaprojects. The framework identifies four interdependent governance dimensions that form a self-reinforcing cycle. Capability configuration provides the foundation for value co-creation, organizational structure safeguards value distribution, relational collaboration underpins sustainability and institutional environment accelerates value realization, collectively forming the capability–organization–relationship–environment (CORE) framework. Originality/value This study extends corporate governance theory to the unique joint venture (JV) structure in hydropower EPC megaprojects. It contributes a qualitatively grounded, four-dimensional governance framework that advances understanding of consortium integration and offers practical insights into how EPC consortia can be governed to support sustainable value co-creation in complex infrastructure projects.