A configurational explanation for performance management systems' design in project-based organizations. Issue 5 (July 2019)

• Record Type: Journal Article
• Authors: de Rooij, Mariska M.G.; Janowicz-Panjaitan, Martyna; Mannak, Remco S.
• Is Part Of: International journal of project management. Volume 37:Issue 5(2019)
• Page Start: 616
• Page End: 630
• Publication Date: 2019-07
• Subjects: Performance management system -- Project-based organization -- Fuzzy-set qualitative comparative analysis, contingency factor; Project management -- Periodicals; Network analysis (Planning) -- Periodicals; 658.40405
• DOI: 10.1016/j.ijproman.2019.03.002
• Languages: English
• ISSNs: 0263-7863

Abstract

Abstract: This paper investigates what configurations of organization-level contingencies explain different performance management system (PMS) designs in project-based organizations (PBOs). By studying organization-level contingency factors – perceived environmental uncertainty, organizational size, innovation strategy, and opportunity strategy – this paper extends prior literature on PMSs in PBOs, which predominantly focused on project and portfolio level contingencies. In addition, while prior literature studied the contingency factors separately, this paper argues that it is the configuration of contingencies that matter for PMS design choices. Data on 15 PBOs in the management consulting industry reveal that PBOs combine various controls into performance management systems that are either predominantly mechanistic or organic in nature. Qualitative Comparative Analysis (QCA) points to four configurations of organization-level characteristics, two of which are associated with the PBO's choice for mechanistic performance management system, and two that are related to organic performance management system. Highlights: Configurational approach to performance management in Project-Based Organizations. PBOs are studied as organizations, not just collections of projects. Combinations of contingency factors explain the performance management system design. The design is explained by organization-level contingency factors: size, strategy and uncertainty Effects of individual contingency factors on the system design vary per combination.