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Resource allocation is challenged by dynamic environments where changes are frequent. The purpose of this paper is to identify resource allocation challenges and practices in service units that perform both project and non-project activities in dynamic environments. Its goal is to show that top-down mechanisms of project resource allocation need to be replaced by or supplemented with mechanisms that are more flexible.

A qualitative comparative case study was conducted in two service units of two project-based firms. The main source of data consisted of semi-structured interviews with 17 service managers and staff members.

This study shows that resource allocation is not necessarily a top-down process at all, and the practices are context-dependent. Two more flexible approaches are revealed – hybrid resource allocation and bottom-up resource allocation – as examples of managing resource allocation in service units that engage in projects under uncertain conditions. The results of the analysis highlight prioritisation and adapting to change and delay as the main issues that managers face in allocating resources to different types of projects and service activities in dynamic environments.

The two target companies chosen for the qualitative research design limit the analysis to project-based firms in a business-to-business context. Further, the viewpoint of the service unit is central to the study. Studying project resource allocation in different organisational contexts and uncovering the perspectives of product development and delivery units would offer promising directions for future research.

The study reveals that in dynamic project settings such as service organisations, top-down mechanisms of resource allocation need to be accompanied by other, more flexible approaches to ensure the sufficient resourcing of projects and related services in dynamic environments. Companies need to establish practices for resource allocation changes that are caused by re-prioritising tasks and accommodating changes and delays in their project and service activities.

Compared to a top-down perspective taken in previous research, the study proposes a more flexible approach for resource allocation in constantly changing environments with different project and service activities. Previous studies have focussed on resource competition between projects, placing project managers in the central role for resource allocation. By contrast, this study discusses hybrid and bottom-up resource allocation, both of which involve broader personnel engagement in resource allocation tasks, drawing on the experience of all employees.

The establishment of legitimacy is one of the critical issues faced by international projects that involve a host of stakeholders and are implemented in challenging institutional environments. The purpose of this paper is to examine the establishment of legitimacy and factors that affect this process in the context of international projects.

A qualitative, multiple case study of three international projects conducted in challenging institutional environments.

Based on a theoretical and empirical analysis of three case projects, the article identifies different strategies that may be enacted to gain project legitimacy in international projects. Furthermore, a set of propositions that describe the effects of different factors (the project's external environment, the project network, the process of legitimation) that explain the extent of the challenge faced by international projects in establishing legitimacy are developed.

The article sets the scene for theory development on project legitimacy. A better understanding of legitimation strategies and of the factors that affect the establishment of legitimacy in international projects advances research on project‐environment interaction and supports managers in proactively managing project legitimacy.

Earned value management systems (EVMS), also called integrated project and program management systems, have been greatly examined in the literature, which has typically focused on their technical aspects rather than social. This study aims to hypothesize that improving both the technical maturity of EVMS and the social environment elements of EVMS applications together will significantly impact project performance outcomes. For the first time, empirical evidence supports a strong relationship between EVMS maturity and environment.

Data was collected from 35 projects through four workshops, attended by 31 industry practitioners with an average of 19 years of EVMS experience. These experts, representing 23 organizations, provided over 2,800 data points on sociotechnical integration and performance outcomes, covering projects totaling $21.8 billion. Statistical analyses were performed to derive findings on the impact of technical maturity and social environment on project success.

The results show statistically significant differences in cost growth, compliance, meeting project objectives and business drivers and customer satisfaction, between projects with high EVMS maturity and environment and projects with poor EVMS maturity and environment. Moreover, the technical and social dimensions were found to be significantly correlated.

Key contributions include a novel and tested performance-driven framework to support integrated project management using EVMS. The adoption of this detailed assessment framework by government and industry is driving a paradigm shift in project management of some of the largest and most complex projects in the U.S.; specifically transitioning from a project assessment based upon a binary approach for EVMS technical maturity (i.e. compliant/noncompliant to standards) to a wide-ranging scale (i.e. 0–1,000) across two dimensions.

The requirements of various participants of a project may conflict with the strategy of the project's parent organization and, consequently, the project may form its individual strategy independently, to better align with the factors in its environment. The purpose of this paper is to describe the formation of the strategy of a project as a response to the project's environment, providing insight into a project's strategy formation, where the project does not merely reflect the strategy of the parent but where the parent is only one influential actor (of many) in the project's environment.

To increase understanding of the relationship between the project's environment, the strategy of the project‐based firm and the strategy formation of a project, the authors analyze a project of a metallurgy firm in an empirical case study. The authors use project literature and corporate venturing literature, look for the dimensions of project strategy and the factors in the project's environment and study how the factors in the environment shape the project's strategy.

The analysis suggests that factors in the internal and external environments affect the strategy formation with varying strength. The strategy of the case project was formed in micro‐level iterative processes, in interaction between dimensions of strategy of the project and factors in environment. The empirical case study suggests that a project initiated with strong influence of external factors has to face contradiction between the strategy and related influential factors in the parent organization of the project.

This paper contributes to our understanding of how the strategy of an individual project is formed through micro‐level processes that are related to external and internal factors that affect the strategy formation.

The purpose of this paper is to qualitatively validate the constructs of a theoretically derived research model while gaining insights to steer the direction of a greater study on methodologies, their elements, and their impact on project success. In doing so, to investigate whether different project environments, notably project governance, impacts the relationship between methodologies and project success.

A deductive approach was applied to validate a theoretically derived research model. In total, 19 interviews across 11 industrial sectors and four countries were used to collect data. Pattern-matching techniques were utilized in the analysis to deductively validate the research model.

There is a positive relationship between project methodology elements and the characteristics of project success; however, environmental factors, notably project governance, influence the use and effectiveness of a project methodology and its elements with a resulting impact on the characteristics of project success.

Project governance plays a major role in the moderating effect of a project methodology’s effectiveness. Contingency theory is applicable to a project’s methodology’s selection and its customization according to the project environment.

Understand the impact of project methodologies and their elements on the characteristics of project success while being moderated by the project environment, for example, the risk of suboptimal project performance due to the effectiveness of methodology elements being negatively impacted by the project environment.

The impact of a project methodology (collection of heterogeneous-related elements) on the characteristics of project success is identified while being moderated by the project environment, notably project governance.

Product development is recognized as cross‐functional teamwork that has become important in the fast‐paced, globally competitive environment. Despite an extant body of knowledge on the importance of fuzzy front‐end planning and functions of goals in the management literature, the impact of uncertain project environment and goal setting mechanisms in front‐end planning is not fully understood. Product development literature presents numerous case studies or conceptual papers that emphasize the importance of upfront planning and a need for team building; however, large‐scale empirical studies are rare. This paper presents a model linking uncertain project environment, project target clarity, teamwork and its outcome measures (i.e. a product's value to customer and time to market). The data were analyzed from 205 product development projects of firms from the USA and Canada. Valid and reliable instruments were developed to assess the nature and impact of inter‐relationships of these variables. Results from structural model tests indicate that uncertain project environment influences the nature of project targets which in turn affects the level of teamwork. Teamwork is an important process outcome for enhancing value to customer and time to market. Management implications are discussed as well.

Previous literature on project strategy has adopted the narrow view that a project is to be conducted under the governance of a single strong sponsor or parent organization. The purpose of this study is to provide a critical analysis on prior project management (PM) literature addressing different context‐specific strategies of single projects.

Literature analysis.

There are two important determinants in the project's context that affect the strategy of a single project: a project's autonomy in its environment and the complexity of project's stakeholder environment. Based on these two determinants, we characterize four types of alternative positions that projects can have in their context: parent's subordinate and autonomous projects that occur in a stakeholder environment that is not complex, and projects with weak and autonomous positions in a complex stakeholder environment. The developed project strategy framework is applied in the context of innovation projects. The analysis results include strategy contents for different types of innovation projects in terms of the project's direction and success.

This study contributes to PM research by broadening the focus from mere tactical‐level projects towards projects as strategic entities, and by suggesting the management of projects differently in different contexts. Further, theoretical and empirical research is proposed on both testing the suggested framework and elaborating it for different project types.

The paper opens up avenues towards the development of new and context‐specific PM bodies of knowledge.

Relationship management evolves with dynamic and complex environments of megaprojects. However, studies on the longitudinal measurement of relationship management performance for each stakeholder in dynamic and complex project environments are lacking. The purpose of this research is to propose an NK-network evolution model to evaluate stakeholder performance on relationship management in the development of megaprojects.

The model input includes the stakeholder-associated issues and stakeholders' relational strategies, the co-effects of which determine the internal effects of relationship management in megaprojects. The model processing simulates the stakeholder performance of relationship management under the dynamic and complex nature of megaprojects. The NK model shows the dynamic stakeholder interactions on relationship management, whereas the network model presents the complex stakeholder structures of the relationships between stakeholders and relevant issues. The model output is the evolution graph to reveal the weak stakeholder performance on relationship management in the timeline of the project duration.

The research finding reveals that all stakeholders experience the plunge of stakeholder performance of relationship management at the decision-making moment of the planning stage. Construction, environmental and pressure groups may experience the hardship of relationship management at the start of the construction stage. The government is likely to suffer difficulties in relationship management in the late construction stage. Local industry groups would face challenges in relationship management in the middle of the construction stage and handover stage.

The research provides a useful approach to measuring weak moments of relationship management for each stakeholder in various project phases, considering the dynamic and complex environments of megaprojects. The proposed model extends the current knowledge body on how to make project stakeholder analysis by modelling dynamic and complex environments of megaprojects, with bridging the knowledge domains of evolution modeling techniques and network methods.

The purpose of this paper is to explore the impact of project settings on empowerment experiences of individuals and teams by examining the effects of specific project characteristics on facets of the empowerment concept (i.e. the structural and psychological perspectives).

A parallel questionnaire survey of client, consultant and contractor organisations was conducted in Hong Kong to test hypotheses relating three facets of the empowerment concept and five project-level antecedents. Hierarchical linear modelling and ordinary least square regression were employed to test the hypotheses.

The analyses show that dynamic project environments, high project team integration and high interdependence of project tasks lead to high individual psychological empowerment, while public-client projects (compared with private-client projects), a hostile project environment and high client integration lead to a low individual psychological empowerment. Uncertainty in project technology also leads to high team psychological empowerment, while hostile project environments lead to low team psychological empowerment. Further, dynamic project environments lead to more empowering work climate, while hostile project environments lead to less empowering work climate. However, project team integration, project complexity, project lifecycle and quasi-public-client projects (compared with private-client projects) have no significant association with the empowerment of individuals and teams.

This study examined task-related factors (i.e. project in this case) which traditionally have not been the focus of studies examining the antecedents of empowerment. Further, project-level antecedents and their link to an integrated perspective of empowerment comprising a sociostructural perspective, a psychological perspective and a team-based perspective are examined, which is a significant departure from the unitary perspective of empowerment taken in most previous studies.

The purpose of this paper is to understand the origins and nature of unexpected events that affect complex projects, by relying on a view of projects as social systems. The authors argue that the project relation to its environment is mediated by a model of this environment that is embedded in the communications between project participants. The adequacy of this model to the causal texture of the environment inspired a first, epistemological, dimension for characterizing events: event predictability. The nature of the boundaries between system and environment inspired the second dimension: locus of generation.

This study followed a multiple‐case study approach. The authors collected data in 17 complex projects, in three types of industries: construction, IT/IS, and pharmaceutical.

In total, nine categories of unexpected events were identified from the intersection of two dimensions: event predictability and locus of generation.

The empirically validated two‐dimensional framework sheds new light on the way organizations react to unexpected events and on the reasons for the eventual project performance.

The findings show that project managers tend to underestimate certain risks. This research will help managers better predict those types of risks. However, some risks are simply unpredictable, therefore the authors argue for the necessity to prepare projects for the unforeseen.

Analyzing the previous literature in unexpected events, the authors identified two main, but opposing, theoretical perspectives: one rooted in decision theory and the other that sees projects as social systems. The value of this paper comes from the original mode in which the authors propose to reconcile these perspectives, by viewing projects as networks of communicative couplings between actors.