The effect of project management dynamic capabilities on firm performance

Abstract

PurposeThe purpose of the paper is to shed light on the output of project management (PM) dynamic capabilities Specifically, the study investigates what effect PM dynamic capabilities have on company performance, both directly and indirectly, through the mediation effect of project and portfolio performance. Additionally, it tests whether program performance might also mediate the relationship.Design/methodology/approachThe hypotheses were tested using partial least squares with a sample of 63 international firms that engage in projects globally.FindingsThe main finding of this research is that PM dynamic capabilities do not influence firm performance directly but do so indirectly by increasing firms' performance in projects, programs and portfolios. Both project and portfolio performance have a mediation effect on the relationship between dynamic capabilities and firm performance, but portfolio performance absorbs all this effect when the two performances are in the model.Originality/valueThis paper sheds light on the link between dynamic capabilities and firm performance. It tests the real outcome of dynamic capabilities by making an explicit distinction between firm performance at three intermediate levels (project, program and portfolio) and overall firm performance. Moreover, it opens the black box of dynamic capabilities and empirically operationalizes the theoretical model of sensing-seizing-transforming as the three constituting routines of dynamic capabilities.

Modeling the Capabilities of High-Performing Project Management Offices in General Contracting Companies

“…Recent research advocates that the scope of dynamic capabilities is not limited to adapting resources to the changing business settings through organizational learning but also involves an active contribution to shaping the external business environment (Bianchi et al, 2022). The major advantage of such capabilities is that they enable firms to gain a competitive advantage and outperform competitors by strengthening key resources (Hermano et al, 2022). Generally, the theory of dynamic capability reflects the importance of systemic change to start inside the context of an organization and then be extended to the external business environment.…”

Firms’ dynamic capabilities and supply chain risk management: a B2B perspective

“…Previous studies mentioned that the DCV helps firms in building their competitive advantage through the adaption, integration, reconfiguring and implementation of necessary resources (Hermano et al, 2022). CC helps in building proper SCA (Lee, 2004).…”

Analysis of the application of BIM combined with GIS in engineering digital management

“…Without a complete risk control system, it will bring great harm to public safety. Construction project management is generally to take the project as the object of management, under certain conditions and according to the internal law of the project operation, effectively coordinate, organize, and control the whole life cycle of the construction project so as to implement the project objectives in a fast and efficient way [7][8][9]. Construction project management is a comprehensive discipline closely integrated with science and practice, and the rapid development of a new generation of intelligent construction technology and computer information technology has made BIM-based project management one of the important development trends of the construction industry in the future, and the traditional concepts, modes, and organizational methods of construction project management will inevitably change dramatically along with the in-depth implementation of intelligent construction management system of construction projects [10][11][12].…”