The Missing Link in Project Governance: Permeability and Influence of Governance Precepts on Decision Making in the Project Domain

Abstract

This study aims to understand how the information about corporate governance precepts permeates the organization within the project environment and influences decision making. After analyzing 157 decisions, we concluded that there is a lack of robustness in the governance mechanisms to convey this information consistently. However, when there is strength to break the gap and reach the agent, the decisions made in the projects are 16.5 times more likely to be aligned with corporate governance. This finding reveals the importance of effective and consistent project governance mechanisms.

Effects of Authentic Leadership, Behavioral Integrity, and Project Governance on Project Performance

“…Project governance cooperates within the corporate governance structure with the goal of enabling projects to meet their organizational objectives (Müller, 2009). At a higher level, corporate governance is directed toward project activities in four main categories, including project sponsorship , portfolio direction , disclosure and reporting , and project management effectiveness and efficiency (Association for Project Management [APM], 2011; Ferrer et al, 2021; Sirisomboonsuk et al, 2018). Based on the project governance concept from the Association for Project Management (2011), Sirisomboonsuk et al (2018) proposed and empirically tested a 15-item project governance instrument adopted from various previous project management research (Curran et al, 2009; Hyväri, 2006; Killen et al, 2008; Kloppenborg et al, 2011; Thompson et al, 2007).…”