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Organizational flexibility and project portfolio performance: the roles of innovation, absorptive capacity and environmental dynamism

Muhammad Aamir Saeed (Business School, Nankai University, Tianjin, China) (Department of Management Sciences, COMSATS University Islamabad–Wah Campus, Wah Cantt, Pakistan)
Yuanyuan Jiao (Business School, Nankai University, Tianjin, China)
Muhammad Mohsin Zahid (Neuron Business and Development Solutions Inc., Islamabad, Pakistan)
Humaira Tabassum (Zhou Enlai School of Government, Nankai University, Tianjin, China)
Shazia Nauman (Riphah School of Business and Management, Riphah International University, Lahore, Pakistan)

International Journal of Managing Projects in Business

ISSN: 1753-8378

Article publication date: 23 August 2020

Issue publication date: 6 April 2021

733

Abstract

Purpose

The aim of the current study is to empirically assess the effects of organizational flexibility on project portfolio (PP) performance, with the mediating role of innovation and moderating effects of environmental dynamism (ED) and absorptive capability (AC).

Design/methodology/approach

Data were collected from 173 manufacturing firms and analyzed using structural equation modeling (SEM) with the help of a partial least squares (PLS) approach.

Findings

Results show that innovation partially mediates the relationship between organizational flexibility and PP performance. Furthermore, the moderating effect of ED between organizational flexibility and innovation was analyzed. Additionally, AC also observed as a moderator between innovation and PP performance.

Originality/value

Based on the resource-based view, this study contributes to the literature by addressing the roles of innovation, ED and AC in the relationship between organizational flexibility and PP performance. Implications for managers also discussed in the end; for example, to be more competitive, they should incorporate flexibility into the firm to encourage innovation. It also emphasizes to select new innovative opportunities that correspondingly have effects on the PP performance.

Keywords

Acknowledgements

This work was supported by the National Natural Science Foundation of China (Grant No. 71672095).

Citation

Saeed, M.A., Jiao, Y., Zahid, M.M., Tabassum, H. and Nauman, S. (2021), "Organizational flexibility and project portfolio performance: the roles of innovation, absorptive capacity and environmental dynamism", International Journal of Managing Projects in Business, Vol. 14 No. 3, pp. 600-624. https://doi.org/10.1108/IJMPB-02-2020-0058

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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