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

Abstract

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

Influence Mechanism of Organizational Flexibility on Enterprise Competitiveness: The Mediating Role of Organizational Innovation

“…Besides, the findings of this study show that OF is conducive to promoting TI and MI. OF generates creativity [53], allowing the firm to develop new products or services and make adjustments in management regulation, process, and method to adapt to market demands quickly [9]. Furthermore, previous studies demonstrated that the dimensions of organizational flexibility that are established in this paper (SF/RF/LF/CF/TF/IF) can positively promote OI.…”

“…Thanks to flexibility, firms can react to environmental changes and uncertainties more quickly: They can absorb change, integrate, develop, and restructure resources and capabilities in the organization in a short time [8]. Besides, improving flexibility is considered a crucial tool that can predict organizational performance [9]. Therefore, enhancing flexibility serves as a feasible solution for promotion of enterprise competitiveness in a turbulent environment.…”

“…Organizational innovation capacity is of vital importance in shaping PBEs competitiveness in the construction industry [15]. Meanwhile, there is evidence indicating that innovation partially mediates the relationship between organizational flexibility and project portfolio performance [9]. PBEs with flexibility are likely to use various organizational resources to fully realize the benefits of technological innovation and management innovation.…”

How absorptive capacity influences project performance

“…Other scholars have suggested working with AC as a moderating factor. For instance, Saeed et al (2021) analyzed AC through innovation and project portfolio. Furthermore, Ahlin et al (2014) explored AC through entrepreneurs' networks and product and process innovation.…”

Difficulties observed in hydroelectric turbine projects management: evidence from case studies

“…The search for better results requires companies to constantly improve management models used and techniques adopted (Carvalho et al , 2015; Saeed et al , 2020). To ensure good organizational performance, it is necessary to invest in new approaches, manage the costs, improve existing management tools, understand customers' requirements and constantly innovate responsibly and sustainably (Sanchez et al , 2017).…”