Research on Power Distribution of Project-Based Firms

Abstract

Project-based firms have gradually become an important form of organisations because of their ability to integrate various intellectual resources and professional skills. Unclear or over-centralised delegation of project management authority lead to inefficient project governance and jeopardise the interests of the firm. The allocation of management authority is important for enhancing the interests of Project-based firms. This paper uses an open questionnaire to study the distribution of power in Project-based firms. It identifies the types of power allocated to project departments, the ways of distributing power and the influencing factors, and provides evidence for understanding the management of power distribution in Project-based firms in China. The results show that: the types of authority obtained by the project department mainly include personnel management, procurement, financial management and production management; the way the project department obtains power distribution can be divided into application, proposal and decision; the factors influencing the management of power distribution across the industry include project level, firm level and project team level, with the project level accounting for the highest proportion of factors, including the type of project and complexity of the project, etc. This study complements and refines theories on project management and the distribution of power.