ECONOMIC IMPACT OF PROJECT MANAGEMENT PRACTICES ON INNOVATION PERFORMANCE: AN EMPIRICAL STUDY IN TECH STARTUP ECOSYSTEM

Abstract

Objective: In an age when competitive advantage needs to be sustained through innovation, especially in the very fast and dynamic tech industry, good practices in project management make a vital contribution toward successfully manoeuvring through the complexities of innovation projects. This study highlights the economic implications of project management on innovation performance within technology-based ventures, particularly in Saudi Arabia’s evolving tech ecosystem. Method: An empirical analysis of 372 responses using an SEM approach investigates the alignment of innovation objectives with project management practices by identifying key factors that contribute to innovation performance in an evolving tech ecosystem in Saudi Arabia. Results and Discussion: The research concluded that good project management practices can, to a high extent, enhance the innovative capability of tech startups, whereby the converted ideas can come into existence and be taken from the idea level to the marketplace. Research Implications: The practical implications of the research were to recommend ways in which tech startups and other firms can enhance their innovation performance by embracing best practices in project management. This implies that by coupling these economic practices with strategic innovation objectives, by fostering collaboration, and by managing resources and risks efficiently, organizations can substantially enhance their innovation capacity and ensure long-term success in competitive markets. Originality/Value: This study contributes to the growing body of knowledge at the border between project management and innovation and can contribute something new for both practitioners and policymakers within the tech environment.