۱- Introduction

۲- Theoretical background

۳- Hypotheses

۴- Method

۵- Results

۶- Discussion and conclusion

References

Abstract

Project management approaches are evolving to be more flexible and adaptive to meet the challenges associated with an increasingly complex and dynamic environment. However, potential changes in the underpinning logic supporting project decision making have scarcely been considered. We investigate the role of effectuation, a decision logic most commonly associated with entrepreneurship, as an alternative decision-making approach to the rational ‘causation’ logic that has traditionally underpinned project management processes. We develop and test a model to explore the portfolio- and project-level influences on the application of effectuation in project management. We find that portfolio governance mechanisms related to business case use and portfolio monitoring inhibit the use of effectuation, while project innovativeness is associated with increased use of effectuation. The paper contributes to research and practice by empirically investigating the antecedents to the use of effectuation decision-making logic in project and portfolio management through a multi-level model.

Introduction

Project management approaches have largely been based on a rational decision logic that stems from its origins in meeting the demands of managing complex, technical projects (Söderlund, 2011; Turner et al., 2013). However, project environments are changing, with project management practices now applied to a wide range of projects in an increasing number of industries (Jensen et al., 2016). This shift in the project landscape is accompanied by an increasing focus on the strategic contribution of the project portfolio, and the need for enhanced levels of innovation, responsiveness and flexibility (Kock and Gemünden, 2016; Kopmann et al., 2017). Much has been done to meet the challenges created by such demands within project and portfolio frameworks (Martinsuo, 2013); however, the reliance on the traditional ‘rational’ or ‘causal’ logic may limit the effectiveness of project decision making in such environments (Huff, 2016). Effectuation is a form of decision-making logic that has been shown to be used for entrepreneurial decision making (Sarasvathy, 2001). In this paper, we explore the role of effectuation as an alternative decision-making logic in project environments. Decision making is a key task in project management (Stingl and Geraldi, 2017) and project portfolio management (PPM) (Kock and Gemünden, 2016; Meifort 2016). Decisions must be made about priorities, approaches, time, and resources in order to develop or sustain competitive advantage and enhance business success (Cooper et al., 2002). Traditional project management methods and tools such as business plans,  forecasts, financial methods, and frequent monitoring and analysis (Salomo et al., 2007) are designed for a ‘causal’ decision making mindset. However, as organizations across industry sectors are faced with increasingly complex and dynamic environments, project management approaches are evolving to meet the changing needs. The emergence of an alternative decision-making logic, effectuation, may play a part in this shift in project management approaches (Huff, 2016).