Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
권호 표지

An Exploratory Study on the Project Performance by PMO Capability

PMO 역량에 따른 프로젝트 성과에 관한 연구

  • Published : 2008.03.31
Download PDF
⟨ Previous Next ⟩

Abstract

In recent years, although numbers of corporations are bringing in PMO, they seem to be indifferent to PMO performance measurement. This demonstrates that there are also other reasons beside performance measurement of information systems (IS) project being ambiguous by introducing PMO; the lack of acknowledging the concrete function of PMO, and the scarcity of empirical study about the effect of PMO on the project members and project performance. In this sense, this study is aimed at proposing a new research model in which project success factors (i.e., standardization, management advocacy, and staff expertise) affect PMO capability (i.e., knowledge management, resources management, and problem solving competency) positively, leading to project performance (i.e., task outcomes, psychological outcomes, and organizational outcomes) eventually. To empirically test the research model, data are surveyed from PMO department and IS department. To prove the validity of the proposed research model, PLS analysis is applied with valid 132 questionnaires. By employing PLS technique, the measurement reliability and validity of research variables are tested and the path analysis is conducted to do the hypothesis testing. The path analysis results can be organized into 7 ways in large scale. First, standardization of project success factors has a positive association with knowledge management, resources management, and problem solving competency of PMO capabilities. The findings of this result indicate that the multiple or single project management should satisfy standardization in order to operate an effective PMO. Second, management advocacy of project success factors has a positive association with knowledge management, resources management, and problem solving competency. Management advocacy refers to the willingness of management to provide the required resources and authority for project success. There is agreement among researchers regarding the importance of management advocacy for favorable PMO capability. Third, staff expertise of project success factors has a positive association with knowledge management, resources management, and problem solving competency. The findings of this result indicate that the formation of an exceptional consultant or members with a proficient knowledge for staff expertise of project member is the key factor to elevate the PMO capability. Past research suggests that experience and knowledge and the resultant familiarity with the problem faced can be an important determinant of PMO capability. A capable project with appropriate staff expertise means that it enjoys a diversity of abilities and experiences. Fourth, knowledge management competency of PMO capabilities has a positive impact on psychological outcomes but has no direct effect on task outcomes and organizational outcomes. In domestic case of S. Korea, PMO was finally introduced to many other corporations in 2005 though it started bringing in 2000. Therefore, it had neither a significant impact on the task outcomes nor organizational outcomes by lacking the contents and the infrastructure of the knowledge management because the knowledge consolidation and management period of PMO is comparatively shorter by terms than other foreign nations. Fifth, resources management competency of PMO capabilities has a positive association with task outcomes, psychological outcomes, and organizational outcomes. In addition, problem solving competency of PMO capabilities has a positive association with task outcomes, psychological outcomes, and organizational outcomes. Therefore, the findings of this results stress that PMO capabilities has a positive impact on project performance. Sixth, according to the path analysis of the hypothesis, which suggested in this research, problem solving competency is the PMO capability which is the key success factor for task, psychological, and organizational outcomes as an integrated performance model. Further, the analysis reveals that problem solving competency is an important factor for integrated performance model. The finding is in line with past IS research, which affirms that the work of IS projects is essentially a problem solving endeavor. Seventh, in the path analysis of the hypothesis in this research, the path of the management advocacy $\rightarrow$ problem solving competency $\rightarrow$ organizational outcomes appears to be the most important and strongest path. In brief, the finding of this study suggests that project success factors influence PMO capability positively, and project performance as well. From the results, it can be concluded that PMO helped great improve the project success rate and project performance. This study advances research on PMO capability in three important aspects. First, the findings of our study have implications for IS theory and future research. Our study contributes to IS theory by synthesizing concepts from PMO research and project management research with those in IS research. We proposed and tested PMO capability of IS projects and the findings of our investigation provided some preliminary answers to some of the questions raised. Secondly, this thesis does not only help depicting the concept of IT governance but also approaches empirically. It makes a gradual approach to the main content, step by step, in contrary of simple standard, scholastic way of thinking. Finally, we argued that this task-oriented(technical) view is not sufficient to adequately conceptualize IS project performance. Hence, we applied that the research on organization teams, which provides a flip viewpoint to that of project management research in that it gives more weight for psychological outcomes of organizational work groups, can be very helpful in reconceptualizing the IS project performance construct. The limitations of this study are also discussed to provide research directions for future research.

Keywords

References

  1. 구본재, 권민영, 김중식, 경영혁신을 위한 IT 거버넌스, 1판, 네모북스, 2006
  2. Aladwani, A.M., "An Integrated Performance Model of Information Systems Projects," Journal of Management Information Systems, Vol. 19, No. 1, 2002, pp. 185-210
  3. Andres, H.P., and Zmud, R.W., "A Contingency Approach to Software Project Coordination," Journal of Management Information Systems, Vol. 18, No. 3, 2002, pp. 41-70 https://doi.org/10.1080/07421222.2002.11045695
  4. Anthony, R.N., Planning and Control Systems: A Framework for Analysis, Cambridge, Mass: Harvard University Press, 1965
  5. Atkinson, R., "Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria," International Journal of Project Management, Vol. 17, No. 6, 1999, pp. 337-342 https://doi.org/10.1016/S0263-7863(98)00069-6
  6. Aubry, M., Hobbs, B. and Thuillier, D., "A New Framework for Understanding Organizational Project Management through the PMO," International Journal of Project Management, Vol. 25, No. 4, 2007, pp. 328-336 https://doi.org/10.1016/j.ijproman.2007.01.004
  7. Baccarini, D., "The Logical Framework Method for Defining Project Success," Project Management Journal, Vol. 30, No. 4, 1999, pp. 25-32
  8. Barclay, D., Thompson, R. and Higgins, C., "The Partial Least Squares (PLS) Approach to Causal Modeling, Personal Computer Adoption and Use as an Illustration," Technology Studies, Vol. 2, No. 2, 1995, pp. 285-324
  9. Bates, W., "Improving Project Management," IIE Solutions, Vol. 30, No. 10, 1998, pp. 42-43
  10. BIA(Business Improvement Architects), "The Impact of Implementing a Project Management Office-Report on the Results of the On-Line Survey," Research Report, 2005, pp. 2-5
  11. Byrd, T.A. and Turner, D.E., "An Exploratory Analysis of the Value of the Skills of IT Personnel: Their Relationship to IS Infrastructure and Competitive Advantage," Decision Science, Vol. 32, No. 1, 2001, pp. 21-54 https://doi.org/10.1111/j.1540-5915.2001.tb00952.x
  12. Chin, W.W., "Issues and Opinion on Structural Equation Modeling," MIS Quarterly, Vol. 22, No. 1, 1998a, pp. 7-16
  13. Chin, W.W., "The Partial Least Squares Approach to Structural Equation Modeling," In Modern Methods for Business Search, Mahwah, NJ: Lawrence Erlbaum Associates, 1998b, pp. 295-336
  14. Cooprider, J.G. and Henderson, J.C., "Technology-Process Fit: Perspectives on Achieving Prototyping Effectiveness," Journal of Management Information Systems, Vol. 7, No. 3, 1991, pp. 67-88
  15. Dai, C.X., and Wells, W.G., "An exploration of project management office features and their relationship to project performance," International Journal of Project Management, Vol. 22, No. 7, 2004, pp. 523-532 https://doi.org/10.1016/j.ijproman.2004.04.001
  16. Deephouse, C., Mukhopadhyay, T., Goldenson, D., and Kellner, M., "Software processes and project performance," Journal of Management Information Systems, Vol. 12, No. 3, 1996, pp. 187-205 https://doi.org/10.1080/07421222.1996.11518106
  17. DeLone, W.H. and McLean, E.R., "Information systems success: The quest for the dependent variable," Information Systems Research, Vol. 3, No. 1, 1992, pp. 60-95 https://doi.org/10.1287/isre.3.1.60
  18. Desouza, K.C. and Evaristo, J.R., "Project management offices: A case of knowledge-based archetypes," International Journal of Information Management, Vol. 26, No. 5, 2006, pp. 414-423 https://doi.org/10.1016/j.ijinfomgt.2006.07.002
  19. Dyba, T., "An Instrument for Measuring the Key Factors of Success in Software Process Improvement," Empirical Software Engineering, Vol. 5, 2000, pp. 357-390 https://doi.org/10.1023/A:1009800404137
  20. Elliot, C., "Qualities of a Data Processing Manager," Data Management, Vol. 13, No. 1, 1975, pp. 35-37
  21. Fornell, C. and Larcker, D.F., "Evaluating Structural Equation Models with Unobservable Variables and Measurement Error," Journal of Marketing Research, Vol. 18, No. 1, 1981, pp. 39-50 https://doi.org/10.2307/3151312
  22. Frame, J.D. The New Project Management: Tools for an Age of Rapid Change, Corporate Reengineering, and Other Business Realities, Jossey-Bass, 1994
  23. Goldenson, D.R. and Herbsleb, J.D., After the appraisal: a systematic survey of process improvement, its benefits and factors that influence success, CMU/SEI-95-TR-009, Software Engineering Institute, 1995
  24. Hackman, J.R., and Oldham, G.R., Work Redesign, Boston, MA: Addison Wesley, 1980
  25. Haley, T.J., "Software Process Improvement at Raytheon," IEEE Software, Vol. 13, No. 6, 1996, pp. 33-41
  26. Henderson, J.C., and Lee, S., "Managing I/S design teams: A control theories perspective," Management Science, Vol. 38, No. 6, 1992, pp. 757-777 https://doi.org/10.1287/mnsc.38.6.757
  27. Hill, G.M., "Evolving the Project Management Office: A Competency Continuum," Information Systems Management, Vol. 21, No. 4, 2004, pp. 45-51
  28. Howel, J.M. and Higgins, C.A., "Champion of Technological Innovation," Administrative Science Quarterly, Vol. 35, No. 2, 1990, pp. 317-341 https://doi.org/10.2307/2393393
  29. Humphrey, W., Snyder, T., and Willis, R., "Software Process Improvement at Hughes Aircraft," IEEE Software, Vol. 8, 1991, pp. 11-23
  30. Igbaria, M., and Guimaraes, T., "Antecedents and consequences of job satisfaction among information center employees," Journal of Management Information Systems, Vol. 9, No. 4, 1993, pp. 145-174 https://doi.org/10.1080/07421222.1993.11517983
  31. Igbaria, M., Parasuraman, S., and Badawy, M.K., "Work experiences, job involvement, and quality of work life among information systems personnel," MIS Quarterly, Vol. 18, No. 2, 1994, pp. 175-201 https://doi.org/10.2307/249764
  32. ITGI(IT Governance Institute), IT Governance Global Status Report, IT Governance Institute, 2006
  33. Jurison, J., "Software Project Management: The Manager's View," Communications of the Association for Information Systems, Vol. 2, No. 17, 1999, pp. 2-57
  34. Kaplan, R.S. and Norton, D.P., Balanced Scorecard, Harvard Business SchoolPress, 1996
  35. Karlsen, J.T. and Gottschalk, P., "Management roles for successful IT projects," International Project Management Journal, Vol. 8, No. 1, 2002, pp. 7-13
  36. Karlsen, J.T. and Gottschalk, P., "An empirical evaluation of knowledge transfer mechanisms for IT projects," Journal of Computer Information Systems, Vol. 44, No. 4, 2003, pp. 112-119
  37. Kenrick, D.T. and Funder, D.C., "Profiting from controversy: Lessons from the person-situation debate," American Psychologist, Vol. 43, No. 1, 1988, pp. 23-34 https://doi.org/10.1037/0003-066X.43.1.23
  38. Kerzner, H., "In Search of Excellence in Project Management," Journal of Systems Management, Vol. 38, No. 2, 1987, pp. 30-40
  39. Kwak, Y.H. and Dai, C.X., "Assessing the Value of Project Management Offices (PMO)," PMI Research Conference, 2000
  40. Lee, D., Trauth, E., and Farwell, D., "Critical Skills and Knowledge Requirements of IS Professionals: A Joint Academic/Industry Investigation," MIS Quarterly, Vol. 19, No. 3, 1995, pp. 313-340 https://doi.org/10.2307/249598
  41. Miller, J., and Doyle, B.A., "Measuring the Effectiveness of Computer-based Information Systems in the Financial Services Sector," MIS Quarterly, Vol. 11, No. 1, 1987, pp. 107-124 https://doi.org/10.2307/248832
  42. Nelson, R.R., "Educational Needs as Perceived by IS and End-User Personnel: A Survey of Knowledge and Skill Requirements," MIS Quarterly, Vol. 15, No. 4, 1991, pp. 503-525 https://doi.org/10.2307/249454
  43. Niazi, M., Wilson, D., and Zowghi, D., "A maturity model for the implementation of software process improvement: an empirical study," The Journal of Systems and Software, Vol. 74, 2005, pp. 155-172 https://doi.org/10.1016/j.jss.2003.10.017
  44. Nidumolu, S.R., "Standardization, Requirements Uncertainty and Software Project Performance," Information and Management, Vol. 31, No. 3, 1996, pp. 135-150 https://doi.org/10.1016/S0378-7206(96)01073-7
  45. O'Reilly, C.A., "Corporations, Culture, and Commitment: Motivation and Social Control in Organizations," California Management Review, Vol. 31, No. 4, 1989, pp. 9-25
  46. Pinto, J.K. and Slevin, D.P., "Project Success: Definitions and Measurement Techniques," Project Management Journal, Vol. 19, No. 1, 1988, pp. 53-58
  47. PMI, Organizational project management maturity model (OPM3): knowledge foundation, Newton Square, PA: Project Management Institute, 2003
  48. Rai, A. and Al-Hindi, H., "The effects of development process modeling and task uncertainty on development quality performance," Information and Management, Vol. 37, No. 6, 2000, pp. 335-346 https://doi.org/10.1016/S0378-7206(00)00047-1
  49. Rainer, A. and Hall, T., "Key Success Factors for Implementing Software Process Improvement: a Maturity based Analysis," The Journal of Systems and Software, Vol. 62, 2002, pp. 71-8 https://doi.org/10.1016/S0164-1212(01)00122-4
  50. Ravichandran, T. and Rai, A., "Quality Management in Systems Development: An Organizational System Perspective," MIS Quarterly, Vol. 24, No. 3, 2000, pp. 381-415 https://doi.org/10.2307/3250967
  51. Standish Group International, The Standish Report, The Standish Group International, Inc., 2006
  52. Stelzer, D. and Mellis, W., "Success Factors of Organizational Change in Software Process Improvement," Software Process Improvement and Practice, Vol. 4, 1998, pp. 227-250 https://doi.org/10.1002/(SICI)1099-1670(199812)4:4<227::AID-SPIP106>3.0.CO;2-1
  53. Todd, P.A., McKeen, J.D., and Gallupe, R.B., "The Evolution of IS Job Skills: A Content Analysis of IS Job Advertisements from 1970 to 1990," MIS Quarterly, Vol. 19, No. 1, 1995, pp. 1-27 https://doi.org/10.2307/249709
  54. Ward, L., Project Management Terms: A Working Glossary, 2nd Edition, ESI International, 2000
  55. Wateridge, J., "IT Projects: A Basis for Success," International Journal of Project Management, Vol. 13, No. 3, 1995, pp. 169-172 https://doi.org/10.1016/0263-7863(95)00020-Q
  56. Wixom, B. and Watson, H., "An Empirical Investigation of the Factors Affecting Data Warehousing Success," MIS Quarterly, Vol. 25, No. 1, 2001, pp. 17-41 https://doi.org/10.2307/3250957
  57. Wold, H., Soft Modeling: the Basic Design and Some Extensions, in System Under Indirect Observations: Part 2, Amsterdam North-Holland: K.G. Joreskog and H. Wold(eds), 1982
  58. Yoo, Y.J. and Alavi, M., "Media and Group Cohesion: Relative Influences on Social Presence, Task Participation, and Group Consensus," MIS Quarterly, Vol. 25, No. 5, 2001, pp. 371-390 https://doi.org/10.2307/3250922