The Moderating Effect of Technology Utilization on Project Management Function and Project Performance

Hafnidar Abdul Rani,Shahimi Mohtar,Che Sobry Abdullah

doi:10.32890/mmj.17.2013.8995

Hafnidar Abdul Rani, Shahimi Mohtar + Show 1 more

Open Access

https://doi.org/10.32890/mmj.17.2013.8995

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Abstract

This study investigated the moderating effects of technology utilization on the relationship between project management function and project performance. The project management function element is operationalized by nine constructs and the technology utilization element examined in this study focuses on three factors. Data was collected using the questionnaire survey approach. This study employed the stratified random sampling procedure in selecting businesses and organizations, that included the construction industry in the sample. Four hundred and forty eight Aceh construction organizations participated in this study. Partial correlation analysis was utilized for hypotheses testing. In general, the result of the partial correlation analysis showed that technology utilization moderated the relationship between seven of the nine functions of project management and overall project performance. Individually, these three variables of technology utilization did not moderate the relationship between communication management and cost performance. The outcome of this study provided vital information on the relationship between project management function, technology utilization and project performance in the Aceh construction organizations. This study also provided an insight into further understanding of the issue of interface between project management function, technology utilization and project performance.

Highlights

Since the late 1960s project management researchers have been trying to discover which factors lead to project performance (e.g. Baker & Murphy, 1988; Pinto & Slevin, 1988) and have reached conclusions that have been widely reflected in literature written for project management practitioners (Cooke & Davies, 2002).Most of the early studies in the area focused on the reasons for project failure rather than project success
Three elements of technology utilization that acted as a moderator examined the effects that might arise in the relationship between the variables of project management functions and project performance variables
Partial correlation analysis results showed that technology utilization moderated the relationship between seven of the nine functions of project management and project performance which were the relationship between integration management, scope management, time management, cost management, human resource management, risk management, procurement management with overall project performance

Summary

Introduction

Most of the early studies in the area focused on the reasons for project failure rather than project success. In those studies it was assumed that if a project completion time exceeded its due date, or expenses overran the budget, or outcomes did not satisfy a company’s pre-determined performance criteria, the project was assumed to be a failure. Today we know that determining whether a project is a success or a failure is far more complex (Belassi & Tukel, 1996). Uncertainty is the root cause of project delays and a decrease in organizational performance (Ofori, 1991; Ogunlana, Promkuntong, & Jearkjirm, 1996)

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