Project Portfolio Level Research Articles

Multi-Perspective Approach to Building Team Resilience in Project Management—A Case Study in Indonesia

Project management teams have to deal with risks and uncertainties from the project portfolio level to the individual level. Furthermore, project complexity adds to the challenges faced by the project management team. Moreover, projects are performed by project management teams comprising various individuals from different backgrounds. While they perform their project tasks, they have to face dynamics in the projects that lead to major challenges or stress and bounce back from negative experiences to be less likely to experience the detrimental effects of intimidating, uncertain situations. This study aims to show the influence of multi-perspective factors on team resilience and to confirm how team resilience influences team performance. A descriptive, quantitative study was conducted to test the six hypotheses of the study. Data collected through purposive sampling and snowball techniques were analyzed using a structural equation model with SmartPLS software version 3.2.9. The finding shows that individual resilience from the individual perspective, team resources, team interactions from the team perspective and organizational practice all have a positive and significant influence on team resilience, but transformational leadership does not. Team resilience has a positive, significant relationship with team performance. Team resilience appears to have had a strong and significant effect on team performance in multiple industries in Indonesia during the COVID-19 pandemic. Research implications and suggestions for future research are also given.

Lean Investment as a Tool for Sustainable Development in the Post-Covid Era

This study explores the possibility of applying the concept of lean thinking to the choice of investment directions for technological entrepreneurship projects in the post-era era to reduce global and project risks and ensure sustainable development. The analysis of modern tools for responsible investment carried away, and the feasibility of combining an approach of sustainable development and lean thinking to create comprehensive support for the effective implementation of innovations in uncertain and complicated conditions is substantiated. Requirements for the methodological tools for selecting projects for investment formulated. They take into account the role of the organization in the investment ecosystem, support a social and environmentally friendly approach to the selection of projects, can be implemented in conditions of social distancing, and contribute to the construction of an inclusive economy of ecosystems. The concept of the methodology for choosing the directions of investment of technological entrepreneurship projects is presented, which contains two levels of decision- making — the project level and the project portfolio level. The basic principles of lean investment in the context of sustainable economic development formulated: the need to consider the long-term consequences of the implementation of a technological project; the need to assess the feasibility of the project based on the connections and relationships between the participants in the investment ecosystem; reducing the risks of financial investments for unprepared investors.

A method for project portfolio risk assessment considering risk interdependencies – a network perspective

Project portfolios represent the bridge between projects and strategy. However, the final results may not be as expected because materialization of risk factors. Hence, literature has acknowledged project portfolio risk assessment as an element of the project portfolio risk management, being the element that provides information on the importance of risk factors. For that, some specific characteristics should be considered, such as risk interdependency influence and the risk factors impact over portfolio higher levels. Thus, this study is focused on the development of a method for project portfolio risk assessment that considers both risk factor interdependencies and their impact on the strategic objectives as a network. In addition, the method also allows incorporating both risk factors derived from projects and derived at project portfolio level. A representative example is provided to illustrate the proposed method.

Introduction of a digital maturity assessment framework for construction site operations

Digital technologies as enablers for more sustainable improvements of construction site processes contain interesting opportunities. Little is known how to, in a structured way, assess and implement digital technologies to support development and improvement of construction site operations. Maturity frameworks assess the status quo and guide decision makers to potential improvements. The purpose of this research is to develop a framework for assessing digital maturity of construction site operations. Literature and empirical data were utilized to develop and validate the framework. The framework contains assessment areas that specify the areas of potential improvements, maturity levels that indicate the progression towards maturity, assessment criteria that define organizational aspects of the assessment, and an assessment procedure to guide assessors. The maturity assessment framework contributes potentially to systematization of evaluative processes creating opportunities for a change within processes and organizations enabled by digital initiatives and to long-term improvements on project portfolio level.

Unpacking Entrepreneurial Intensity and Individual Ambidexterity in Small Project-Based Enterprises: A New Perspective for the TV Drama Industry

The purpose of this paper is to show that individual ambidexterity affects performance in small project-based enterprises. This is consistent with a recent and prominent stream of research that investigates the characteristics of workers as antecedents of ambidexterity behaviors and their effect on performance. We also analyze the role of entrepreneurial intensity as an important context issue that hampers this relationship. We test our hypotheses in the context of Italian television drama series productions, which are small project-based enterprises, by analyzing the careers of 1736 project entrepreneurs who had been working in the industry from 1996 to 2010. Our results suggest that for project entrepreneurs, high diversity in work experiences positively affects the project performance. Moreover, we demonstrate that the industry tenure of project entrepreneurs lessens the main relationship, by reducing the positive effect of entrepreneurial intensity and limiting benefits of ambidextrous behaviors. Our findings allow us to add insights to the entrepreneurship research and individual level ambidexterity theory. First, we contribute to this stream of research by analyzing how the diversity of work experiences at the individual level affects project performance. In doing so, we overcome the prior literature, which limited analysis only to the project portfolio level. Second, we develop a framework that investigates the argument regarding whether and under what circumstances does individual level ambidexterity improve project performance.

Portfolios of Agile Projects

While agile approaches can be extremely effective at a project level, they can impose significant complexity and a need for adaptiveness at the project portfolio level. While this has proven to be highly problematic, there is little research on how to manage a set of agile projects at the project portfolio level. What limited research that does exist often assumes that portfolio-level agility can be achieved by simply scaling project level agile approaches such as Scrum. This study uses a complex adaptive systems lens, focusing specifically on the properties of projects as agents in a complex adaptive portfolio to critically appraise current thinking on portfolio management in an agile context. We then draw on a set of 30 expert interviews to develop 16 complex adaptive systems (CAS)-based propositions as to how portfolios of agile projects can be managed effectively. We also outline an agenda for future research and discuss the differences between a CAS-based approach to portfolio management and traditional approaches.

The management of organizational ambidexterity through alliances in a new context of analysis: Internet of Things (IoT) smart city projects

In the last decade, the Internet of Things (IoT) has affected the approach of organizations to innovation and how they create and capture value in everyday business activities. This is compounded in the so-called Smart Cities, where the objective of the IoT is to exploit information and communication technologies (ICTs) to support added-value services for citizens, giving companies more opportunities to innovate through the use of the latest technologies. In this context, multinational enterprises (MNEs) are building alliances, starting several projects with public and private city stakeholders aimed at exploring new technologies for cities but also at exploiting new IoT-based devices and services in order to profit from them. This implies that companies need to manage and integrate different types of knowledge to efficiently and effectively support the simultaneous pressure of exploration and exploitation, at a project portfolio level. Using structural equations modeling with data collected from 43 IoT smart city project alliances in Italy, this paper tests and finds evidence that MNEs need to develop knowledge management (KM) capabilities combined with ICT capabilities if they want to obtain greater ambidexterity performance at the project portfolio level. More specifically, we highlight that KM capabilities enhance alliance ambidexterity indirectly through firms' ICT capabilities, suggesting that MNE managers should design KM tools and develop new ICT skills. Implications for academics, managers and future lines of research are proposed.

The role of project portfolio management in fostering both deliberate and emergent strategy

Formal strategy processes have been shown to be insufficient in shaping strategy, particularly in turbulent environments. Emerging strategies that constitute independently from deliberate top-down strategy processes are important for organizational adaptability. This study explores strategic control mechanisms at the project portfolio level and their influence on emergent and deliberate strategies. Based on a sample of 182 firms, we show that both deliberate and emerging strategies positively influence project portfolio success, complementing each other. In turbulent environments, the relevance of deliberate strategy implementation decreases. Strategic control activities not only foster the implementation of intended strategies, but also disclose strategic opportunities by unveiling emerging patterns. Furthermore, we find that deliberate strategy implementation and emerging strategy recognition mediate the performance impact of strategic control. Our findings suggest that strategic control at the project portfolio level has an important role to play in the purposeful management of emergent strategies.

Business Case Control in Project Portfolios—An Empirical Investigation of Performance Consequences and Moderating Effects

Practitioners place strong emphasis on business cases with the expectation that using business cases to inform and drive investment decisions will assist in creating value from those investments. Maximizing the value generated by project investments is a central aim of the project portfolio management, and the business case provides the underlying rationale for the evaluation of the value created in each project. However, research regarding the use of business cases at a project portfolio level is scarce, and there is a little guidance for portfolio managers on when and how to control the business cases. We identify three elements of a business case control at the portfolio level—the initial review, the ongoing monitoring during the project execution, and the postproject tracking until the business case is realized—and investigate the relationship between business case control and project portfolio success. Furthermore, we analyze enablers and contingencies for the application of the business case control. Based on a cross-industry sample of 183 firms, we find that the business case control is positively related to the project portfolio success. Accountability for business case realization and corresponding incentive systems increase this positive effect. Finally, we show that the portfolio complexity also positively moderates the relationship.

Financial Management of the Construction Projects: A Proposed Cash Flow Analysis Model at Project Portfolio Level

Construction sector is vulnerable to economic changes, especially during recession periods due to the high capital outlays, cost flexibility and high competition limiting the price. The changes of the business environment, often associated with shortage of funds, exchange rate fluctuation and political instability are increasing the construction projects financial risks. The actual economical context in the Central and East European countries is characterized by an aggressive competition and a lack of investments in construction area. The common behaviour of the contractor construction companies during these days is to accept a large number of risks beyond their power to mitigate them only to still stay on the business. In order to win the tender, they are bidding lower prices which make them vulnerable to the unexpected events during the project, especially from financial aspects. But the lack of cash during the project progress both at the employer level but mostly at the contractor level leads to delays, penalties and loss of opportunities which are reflected in the health of projects and organizations.

Impact of customer integration on project portfolio management and its success—Developing a conceptual framework

The growing number of company projects requires comprehensive management, project portfolio management (PPM), for strategic alignment and efficient use of resources. In parallel, companies face customers demanding higher value, and joint value creation with customers is considered a key success factor in the future. Project portfolios delivering products and services for customers implicate a link between PPM and an increased customer focus. Combining the research fields of marketing and PPM for the first time, this study proposes customer integration into PPM. I develop a framework describing the impact of customer integration into PPM on project portfolio success mediated through relationship value. Furthermore, the study describes relevant aspects for customer integration on the project portfolio level and identifies interfaces for cross-functional integration of a customer portfolio representative within the PPM process. The findings and limitations of this study are discussed, and further research is suggested.

Problems and their mitigation in system and software architecting

ContextToday, software and embedded systems act as enablers for developing new functionality in traditional industries such as the automotive, process automation, and manufacturing automation domains. This differs from 25–30years ago when these systems where based on electronics and electro-mechanical solutions. The architecture of the embedded system and of the software is important to ensure the qualities of these applications. However, the effort of designing and evolving the architecture is in practice often neglected during system development, whilst development efforts are centered on implementing new functionality. ObjectiveWe present problems and success factors that are central to the architectural development of software intensive systems in the domain of automotive and automation products as judged by practitioners. MethodThe method consisted of three steps. First, we used semi-structured interviews to collect data in an exploratory manner. As a second step, a survey based on problems extracted from the interview data was used to investigate the occurrence of these problems at a wider range of organizations. In order to identify and suggest how to mitigate the problems that were considered important, we finally performed root cause analysis workshops, and from these a number of success factors were elicited. ResultsA total of 21 problems have been identified based on the interview data, and these are related to the technical, organizational, project, and agreement processes. Based on the survey results, the following four problems were selected for a root cause analysis: (1) there is a lack of process for architecture development, (2) there is a lack of method or model to evaluate the business value when choosing the architecture, (3) there is a lack of clear long-term architectural strategy, and (4) processes and methods are less valued than knowledge and competence of individuals. ConclusionIn conclusion, the following identified success factors are crucial components to be successful in developing software intensive systems: (1) define an architectural strategy, (2) implement a process for architectural work, (3) ensure authority for architects, (4) clarify the business impact of the architecture, and (5) optimize on the project portfolio level instead of optimizing each project.

Containing Transaction Costs in ERP Implementation through Identification of Strategic Learning Projects

Implementation of enterprise resource planning (ERP) systems requires in-depth understanding of the idiosyncrasies of the receiving organization, thus implying specific learning costs. ERP projects delivered in form of contracted projects in a competitive market environment often ignore costs for competitive reasons (Linderoth & Lundqvist, 2004). However, these learning costs add to the overall transaction costs of a project. If not budgeted into the individual projects, these costs accumulate at the project portfolio level of project delivery organizations (sellers) and must be managed adequately. One way of minimizing learning costs at the portfolio level is to identify strategic learning projects, which accrue higher than planned (competitive) costs, but lower the costs of future projects and thereby the overall learning costs at the portfolio level. The present study investigated the practices of dealing with costs of learning projects at a Swedish ERP consultancy over a period of six months. The results show how to lower portfolio-level project costs in the long-term through identification of strategic learning projects, with expected budget overruns in the short-term. The study takes a transaction-costs-economic (TCE) perspective. A model shows the impact of short-term learning investments on the lowering of implementation risks in future projects. The model can be used by managers for understanding long-term profitability by exceeding time and budget objectives in the short term.