Emerging strategy recognition in agile portfolios

Agile practices become increasingly popular for projects and project portfolios offering firms a higher flexibility to adapt to dynamic environments. This study investigates the antecedents and consequences of agile practices' relevance for strategy formulation in project portfolio management processes. Building on complex adaptive systems theory, we hypothesize a positive relationship between agile capabilities and emerging strategy initiatives and eventually portfolio success. Agile capabilities refer to both the project portfolio organization's intensity of and competence in applying agile practices. Using a sample of 135 portfolios and multiple informants for each portfolio, the results support entrepreneurial orientation and voice behavior as antecedents for agile capabilities. Furthermore, the findings support an agile portfolio's positive relationship with emergence recognition and overall portfolio success. The findings contribute to the literature by identifying two significant antecedents of agile capabilities as well as empirically demonstrating the positive relationship between agile portfolios and emerging strategy recognition. For practitioners, the study encourages the application of agile practices by stressing the general positive influence of agile capabilities and underlines entrepreneurial orientation and voice behavior as important methods of empowerment for agile portfolio processes.     

HRM in project groups: The effect of project duration on team development effectiveness

The literature has found contradictory results regarding the impact of human resource management on project success. This paper focuses on one important human resource management process – team development – to investigate its importance in the project environment. Results show that most team development practices that work well in the operational business environment do not have a significant influence on project success. However, project duration was found to moderate the relationship between team development and project success: the effectiveness of team development increases in longer projects. The paper identifies and analyzes team development practices that have a positive impact on project success exclusively in long projects.     

The influence of business strategy on project portfolio management and its success — A conceptual framework

Firms are facing more difficulties with the implementation of strategies than with its formulation. Therefore, this paper examines the linkage between business strategy, project portfolio management, and business success to close the gap between strategy formulation and implementation. Earlier research has found some supporting evidence of a positive relationship between isolated concepts, but so far there is no coherent and integral framework covering the whole cycle from strategy to success. Therefore, the existing research on project portfolio management is extended by the concept of strategic orientation. Based on a literature review, a comprehensive conceptual model considering strategic orientation, project portfolio structuring, project portfolio success, and business success is developed. This model can be used for future empirical research on the influence of strategy on project portfolio management and its success. Furthermore, it can easily be extended e.g. by contextual factors.     

Competitive advantage from ERP projects: Examining the role of key implementation drivers

In this study, we build a conceptual model, which draws upon information systems implementation theory, to investigate the relationship between critical success factors related to the implementation of ERP software and the goal of competitive advantage. We test this model with data from a survey of 217 Australian organisations, using structural equation modelling (SEM). We find that organisations can best achieve competitive advantage by carefully managing: a) training and education, and b) system integration activities. Perhaps unexpectedly, neither well-conducted business process re-engineering nor good project management necessarily lead to competitive advantage. We have extended prior knowledge by providing empirical evidence that some CSFs do influence competitive advantage but that others may not. The results confirm that overall project delivery outcomes can be improved by understanding the influence of factors on both project management performance and post-implementation performance. Some theoretical and managerial consequences of the study's findings and limitations are discussed.     

The integration of ideation and project portfolio management — A key factor for sustainable success

Effective management of single projects is no longer sufficient. In today's business market, proactive management of the whole project portfolio has become increasingly important for achieving long-term success and competitive advantage. At the front end of projects, opportunities are discovered, ideas are created, and the foundation for later project, portfolio, and, eventually, corporate success is laid. This paper contributes to the project management body of knowledge by combining the front end view on projects with the holistic view of managing project portfolio landscapes. It focuses on establishing a framework for conceptualization of the relationship between ideation and project portfolio management in product development environment by relating ideation portfolio management, front end success, and project portfolio success, and lays the groundwork for further empirical research. The overarching topic I address is the conceptualization of how ideation can facilitate and sustainably improve portfolio success in the product development environment in the long-term.     

Project complexity and team-level absorptive capacity as drivers of project management performance

Many believe that project complexity reduces project management performance. However, so far research has failed to establish this causal relationship conclusively. We extend research on project complexity by introducing the concept of team-level absorptive capacity and by studying its role as mediator between project complexity and project management success. Applying structural equation modelling to a sample of 285 respondents, we find an unequivocal, direct and positive statistical association between project complexity and delays and overspending. Further, we show that team-level absorptive capacity is critical for successful project management, but also that absorptive capacity can only partially offset the harmful impact of project complexity. Beyond adding to project management theory, the paper contributes to the wider management literature. We establish complexity as an antecedent of absorptive capacity and demonstrate how each dimension of absorptive capacity has unique determinants and outcomes.     

Resources contributing to gaining competitive advantage for open source software projects: An application of resource-based theory

Open Source Software (OSS) is an important asset in today's software-intensive society. The success of OSS projects is highly dependent on a number of factors. These factors must be understood and managed as an OSS project progresses. Thus, project management of an OSS project has a decisive role in ensuring the success of its software. The objective of the research is to increase the understanding of the resources affecting the competitiveness of OSS projects. Herewith, the responsiveness of OSS projects to users' needs is assessed via an investigation of the defect-fixing process. A Resource-Based View of the firm (RBV) is used to build theoretical justifications for a set of hypotheses proposed in this study. Data gathered from 427 OSS projects confirmed that developers' interest in and users' contribution to the project as well as frequently updating and releasing the software affect the project's ability to gain competitive advantage through effective defect-fixing. It is also shown that OSS projects that are more popular and have a higher level of organizational communication than others are more likely to gain competitive advantage through effective defect-fixing. Finally, implications of the results for practitioners and the research community are presented.     

Behavior of internal stakeholders in project portfolio management and its impact on success

Stakeholder behavior and stakeholder management are key success factors within project portfolio management (PPM). This empirical study of 197 project portfolios investigates the effect of the intensity of engagement (IoE) of portfolio-internal stakeholders on project portfolio success. We show that the effect of stakeholders is phase-specific and that role clarity as a measure of PPM maturity affects the nature of the relationship between the IoE of stakeholders and portfolio success. The effects of the IoE of senior managers on success are not clearly positive with regard to strategic portfolio structuring and are even negative in operative portfolio steering in established PPM systems. In immature PPM systems, line managers tend to take advantage of their position in resource management. Surprisingly, the influence of portfolio managers in portfolio steering is insignificant. Altogether, this paper shows the diverse effect of the IoE of stakeholders on portfolio success. This study enriches project research by applying stakeholder theory to the project portfolio context and offers practical guidance for further professionalizing PPM.     

In search of 'project chemistry'

The paper aims to provide a language and a conceptual toolkit to deepen our understanding of the impact of relational and social issues on the success of construction projects. Building on several streams of literature, as well as on individual and group interviews with construction practitioners, the paper develops the notion of ‘project chemistry’ as a way of capturing some of the relational and behavioural dimensions and factors that may affect project success and effectiveness in construction. The paper introduces a provisional theoretical framework that (a) identifies a number of external and project level determinants of ‘project chemistry’, (b) suggests ways of measuring how and how well people interact, perceive, and work together in a project, and (c) relates these issues to broader economic and technical factors. The paper concludes with some reflections on the implications and challenges for future research and management practices raised by the notion of ‘project chemistry’.     

Do project managers practice what they preach,and does it matter to project success?

Organizations increasingly use projects to achieve business objectives but report that results often fall short of goals. A number of formal standards for managing projects have been developed intending to improve such project outcomes. However, research examining this assumption is scarce and has yielded mixed results. This paper presents the development and use of a set of metrics for assessing the use of project management (PM) practices in an empirical assessment of the relative use of different practices, and the link between the use of those practices and project success. Our analysis shows widely varying usage of different PM practices and differences in use depending on the context of the project. Further, our study indicates that the level of use of PM practices is indeed related to project success. Finally, the results suggest that the PM practices that make a difference may not be the most frequently used.     

Project portfolio management in practice and in context

Companies struggle with the sub-optimization and changes among their projects, even if various normative instructions and good practices have been introduced for project portfolio management. At the center of this paper is the need to understand project portfolio management in practice and in context. The purpose is to report a review on recent empirical research literature regarding project portfolio management, to draw attention to the limitations with viewing portfolio management as a rational decision process, and to develop new avenues for research regarding project portfolio management in practice and in context. As a result, this paper shows that, to respond to uncertainties and complexities in business environments, project portfolio management can be viewed as negotiation and bargaining and as structural reconfiguration, besides rational decision processes. These alternative perspectives offer new insight into the dilemmas identified in day-to-day project portfolio management and open up avenues for resolving them, thereby promoting success in project portfolio management.     

Impact of customer integration on project portfolio management and its success—Developing a conceptual framework

The growing number of company projects requires comprehensive management, project portfolio management (PPM), for strategic alignment and efficient use of resources. In parallel, companies face customers demanding higher value, and joint value creation with customers is considered a key success factor in the future. Project portfolios delivering products and services for customers implicate a link between PPM and an increased customer focus. Combining the research fields of marketing and PPM for the first time, this study proposes customer integration into PPM. I develop a framework describing the impact of customer integration into PPM on project portfolio success mediated through relationship value. Furthermore, the study describes relevant aspects for customer integration on the project portfolio level and identifies interfaces for cross-functional integration of a customer portfolio representative within the PPM process. The findings and limitations of this study are discussed, and further research is suggested.     

The moderating effect of human resource management practices on the relationship between knowledge absorptive capacity and project performance in project-oriented companies

In response to recent calls for research on human resource management (HRM) in project management, this research investigates the links between HRM practices, the project team's knowledge absorptive capacity (ACAP) and project performance in project-oriented companies (POCs). Based on survey data from 198 projects in multinational companies (MNCs) in the Thai automotive industry, this research finds that HRM practices moderate the effects of a project team's knowledge ACAP on project performance, in particular of potential ACAP on long-run project performance. In addition, HRM practices covary with a project team's realized ACAP, the other dimension of ACAP, to affect short-run project performance. This research sheds light on the different roles that HRM practices play in a project, finding that HRM practices not only facilitate knowledge management from the current project to future projects but also strengthen the relationship between a project team's knowledge ACAP and long-term project performance. This research contributes to the understanding of HRM in the literature of project management.     

Project planning practices based on enterprise resource planning systems in small and medium enterprises — A case study from the Republic of Macedonia

This paper examines whether Macedonian SMEs plan for the implementation of ERP projects and studies the effect of project planning practices on project success. Four project planning measures were taken into consideration: business case development, scope planning, baseline plan development and risk planning along with three measures of project success; customer satisfaction, perceived quality of the project and success of the implementation process. The study was based on a survey that was conducted on 30 SMEs in the Republic of Macedonia. Data dimensionality was reduced through factor analysis and relationships between the two sets of variables were analyzed by correlation and regression analyses. The findings demonstrated that Macedonian SMEs implemented general project planning practices, even though they did not consider the planning process as a separate phase of the ERP implementation. However, they did not use any particular project planning tools, such as the Gantt chart or WBS. Of the project planning practices that were surveyed, the most practiced were the development of a business case, project scope and baseline plan. The least practiced were risk planning practices. Considering the success of the ERP implementations, this study demonstrated that most of the companies' representatives perceive this undertaking as successful in terms of client satisfaction and perceived quality measures. A higher percentage of respondents found their ERP implementations unsuccessful in terms of implementation process measures, when compared to the previous two success parameters.     

The relationship between success criteria and success factors in organisational event projects

Project success is a widely studied and discussed phenomenon of project management. Whilst certain success criteria and success factors are common across different project types, there are unique criteria and factors that apply only to specific projects. This paper presents the development and investigation of the attributes of the success criteria and factors of organisational event projects, as well as an analysis of the relationship between the criteria and factor areas. The study is based on a questionnaire survey of world and European championships. The findings of the study are of interest because they distinguish the success factors that represent relationship orientation and task focus. An analysis of the correlations suggests that relationship-oriented success factors, such as communication, co-operation and project leadership, play a crucial role in carrying out successful organisational event projects.     

Managing divestments as projects: Benefits of stakeholder orientation

We review research at the intersection of corporate divestiture and stakeholder orientation to synthesize implications for divestment project management. Divestitures are corporate restructuring projects, implying application of project management techniques and concepts can facilitate the achievement of desired goals. Managing stakeholder relationships during divestment plays a critical role in determining divestment outcomes. Findings suggest that managers practice stakeholder relationship management through determining divestiture mode, unit selection, participative management, and parenting. Moreover, stronger stakeholder orientation reduces the costs of stakeholder relationship management. For example, stronger stakeholder orientation facilitates spin-offs that align with investor interests, but they require careful consideration of a parenting relationship between a divesting firm and divested unit. Meanwhile, sell-offs involve an additional stakeholder of a new owner and may require greater stakeholder management. When divestitures are more complex, more participative project management can increase the success of corporate restructuring.     

Formalization of project portfolio management: The moderating role of project portfolio complexity

Companies frequently implement formalization to improve success. Previous research has found supporting evidence for the performance-enhancing effects of formalization in both single project management and project portfolio management. However, there is no research on how formalization at the project level interacts with formalization at the portfolio level, or on how this interaction may impact success. This study investigates the interaction of formalization at both levels and examines the moderating effect of project portfolio complexity on formalization. Using a sample of 134 firms, this study shows that single project management formalization and, likewise, portfolio management formalization are directly connected to portfolio success. Simultaneous formalization at these two levels delivers a complementary effect, resulting in an increase in success that is more than additive. A contingency analysis confirms that the proposed positive effects become more prominent if complexity is high. Complexity measured as project interdependency has a stronger moderating effect than complexity measured as portfolio size.     

Turner's five-functions of project-based management and situational leadership in IT services projects

This paper reports on the research conducted in one of the divisions of Europe's largest IT consultancy. This study aims to investigate (1) the critical elements of managing IT services projects by using Turner's (Handbook of project–based management, 2nd ed, England, McGraw–Hill Publishing, 1999) five-functions model to examine the relationships between project definition and scope, project organisation and the triangle of critical project outcomes and (2) if the project leader's orientation is related to his situational perception of project control. Although the survey has found only partial support for the proposed relationships, it has also identified the importance of personal attributes and contingent experiences on the leader's perception of project success. More significantly, the evidence that time and quality, rather than time and cost, are the two most critical project objectives reflects the industry shift of concern from being contractors to solution-partners.     

Management of project portfolios: Relationships of project portfolios with their contexts

Firms create and manage project portfolios to implement and renew their strategies. With the dominant contingency theory view, studies have primarily focused on project portfolios and their internal management whilst acknowledging that different practices are needed in different contexts. A strategic view of managing project portfolios, however, requires adopting a stronger external orientation, both within and outside of the firm. In this paper, we call for research on the management of project portfolios. We investigate the relationship between project portfolios and their context based on four theoretical alternatives: institutional theory, stakeholder theory, resource dependence theory, and sensemaking theory. The results offer explanations to the mechanisms connecting project portfolios with their context, call for a reformulation of portfolio success, and propose a new research agenda to revitalize the study of managing project portfolios in their contexts.     

The effects of organizational culture and environmental pressures on IT project performance: A moderation perspective

In this study we examine the impact of culture and environmental pressures on IT project performance. Specifically, the current study examines four dimensions of organizational culture (i.e., institutional collectivism, results orientation, positive work environment, leadership risk tolerance) and environmental pressures that are competitive and regulatory in nature. Within the context of these variables this study examines the moderating effect of environmental pressures (i.e., levels of competitive and regulatory pressure) on the relationship between organizational culture and IT project performance. The model was empirically tested with data from the United States and China. These two countries were chosen due to their very distinctive characteristics related to organizational resources and environmental factors.