Enhancing the Performance of High-Growth Small- and Medium-Sized Enterprises through Effective Project-Management Processes and Stakeholder Engagement: A Systems Perspective

Abstract

This study examines the impact of project-management practices on high-growth small and medium-sized enterprises (HG SMEs) from a systems perspective, utilizing structural equation modelling (SEM) and data from a diverse SME sample. It investigates the intricate relationships among several factors: project management system support, project-management processes, stakeholder involvement, project management success, project success, and HG SME growth. Our findings highlight the substantial positive influence of project-management processes and stakeholder engagement on project management success. These factors subsequently contribute significantly to both project success and the overall growth of HG SMEs. Notably, project management system support does not exhibit a substantial influence on these success factors. Furthermore, our research uncovers important indirect effects. Project-management processes indirectly impact both project success and HG SME growth, underscoring their central role. Similarly, stakeholder involvement indirectly influences HG SME growth through its impact on project success, emphasizing its significance. This study contributes to the existing body of knowledge by emphasizing the critical roles of project-management processes, stakeholder engagement, and project success as drivers of SME growth. These insights have valuable implications for SME managers, project leaders, and policymakers, highlighting the essential nature of effective project management in shaping the growth trajectory of SMEs.