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PPC - Ambidexterity and Project Performance - Final Draft
PPC - Ambidexterity and Project Performance - Final Draft
PPC - Ambidexterity and Project Performance - Final Draft
1 https://doi.org/10.1080/09537287.2021.1909168
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5 The impact of project portfolio management practices on the relationship 63
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7 between organizational ambidexterity and project performance success 65
8 66
a,b,c
9 Q13 Udechukwu Ojiako , Yacoub Petrod, Alasdair Marshalle and Terry Williamsb 67
10 a
College of Engineering, University of Sharjah, Sharjah, UAE; bHull University Business School, University of Hull, Hull, UK; cUNIZIK Business 68
11 School, Nnamdi Azikiwe University, Awka, Nigeria; dStantec, Waterloo, Canada; eSouthampton Business School, University of Southampton, 69
12 Southampton, UK 70
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ABSTRACT ARTICLE HISTORY
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Some studies suggest that organizational ambidexterity is best orchestrated through individual proj- Received 2 December 2019
16 ects. However, stand-alone individual projects are relatively limited in scope, while suffering from sus- Accepted 23 March 2021 74
17 ceptibilities to horizontal and vertical segmentation. This may render them poorly suited to serve as 75
KEYWORDS
18 conduits for organizational ambidexterity. By contrast, organizations which deliver projects in port-
Organizational ambidexter-
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19 folios, often in order to maximize resource utilization, may discern that these also provide better con- ity; project portfolio 77
duits for organizational ambidexterity. This study examines not only the extent to which project
20 management (PPM); 78
portfolio management (PPM) practices impact orchestrations of organizational ambidexterity, but also projects; project
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whether these orchestrated PPM practices impact further lead to superior project performance. Data performance
22 were collected from one hundred and sixty PPM stakeholders spread across eight countries in the 80
23 Middle East November 2016 to January 2017. The study finds portfolios performance to be strongly 81
24 and highly correlated with organizational ambidexterity. Furthermore, the more organizations exhib- 82
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trous capabilities.
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ited efficient project-portfolio-management practice, the more they were found to develop ambidex-
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30 1. Introduction and contradictory constructs and related practices at issue 88
31 (Tushman and O’Reilly 1996; O’Reilly and Tushman 2011; 89
1.1. Context
32 Luger, Raisch, and Schimmer 2018; Martin, Keller, and 90
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33 Academic scholarship has traditionally suggested that in glo- Fortwengel 2019). These differences mean that finding 91
34 balized operations, independent ‘stand-alone’ projects are appropriate organizational conduits for organizational ambi- 92
35 key to orchestrating the strategic visions of the parent dexterity is critical. Often individual projects are viewed as 93
36 organizations (Chipulu et al. 2016; Kopmann et al. 2017; able to provide such conduits (Eriksson 2013; Turner and 94
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37 Maylor et al. 2018; Midler, Maniak, and de Campigneulles Lee-Kelley 2013; Turner, Maylor, and Swart 2015; Petro et al. 95
38 2019). This view recognizes that projects involve non-routine, 2019). As our literature review will explain, a number of 96
39 ad-hoc and one-off decisions. These decisions may be further descriptive and normative perspectives underlie this view 97
40 laden with potentially helpful ‘paradoxes’, ‘contradictions’ 98
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117 Programmes also encompass projects that share dependen- (iii) Project performance (project success); one secondary out- 175
118 cies. They also generally tend to be commissioned for a spe- come of exploring such territory will be our extension of the 176
119 cific client, with benefit accrual emanating from projects above project-focussed ambidexterity literatures. 177
120 which are jointly managed (Sohani and Singh 2017). 178
121 However, the present research concurs with the view that 179
project ‘portfolios’ serve as a much more effective and effi- 1.4. Structure of the article
122 180
123 cient platform for coordination between projects (Teller et al. The next section (Section 2) gives an overview of the rele- 181
124 2012; Martinsuo 2013; Patanakul 2015; Kopmann et al. 2017; vant literature in organizational ambidexterity. This commen- 182
125 Petro 2017; Petro et al. 2020). In particular, this is because ces with a review of relevant concepts. We also examine 183
126 ‘portfolios’ which each deal with the ‘ … coordination and PPM literature, and the relationship between PPM and organ- 184
127 Q3 control of multiple projects’ (Martinson 2013, 794), may izational ambidexterity. In Section 3, we present the research 185
128 involve multiple projects pursuing sometimes different and methodology, which is based on data obtained between 186
129 contradictory strategic goals. Thus, in ensuring that diverse November 2016 and January 2017 from 160 practitioners. It 187
130 priorities are balanced (including the effective and efficient is explained that the questionnaire was improvised from 188
131 utilization of scarce project resources- see Kock et al. 2020), organizational scale measures developed earlier by Lubatkin 189
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132 project portfolio management (PPM) serves as an ideal plat- et al. (2006). In Section 4, we report the results of the data 190
133 form for the management of organizational ambidexterity analysis, which was undertaken using IBM SPSS Statistics soft- 191
134 (see Pellegrinelli, Murray-Webster, and Turner 2015; Bresciani, ware version 22. Discussions of implications from findings are 192
135 Ferraris, and Del Giudice 2018). One important consideration presented in Section 5. The article concludes in Section 6 by 193
136 driving preferences for portfolios as against programmes in attesting to the importance of the portfolio approach while 194
137 195
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order to orchestrate organizational ambidexterity is that calling attention to its advantages with some critical
138 organizations do not generally practice ‘single project man- reservations. 196
139 agement’ (Martinsuo and Lehtonen 2007; Go €ro
€g 2011). 197
140 Rather, instead of commissioning and implementing single 198
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‘stand-alone’ projects (Eriksson 2013), organizations typically
tend to commission, implement and manage projects in
portfolios (groups) of concurrent and interdependent proj-
ects (Archer and Ghasemzadeh 1999).
O 2. Organizational ambidexterity
2.1. What is organizational ambidexterity?
At its very basic form, ‘organisational ambidexterity’ is a con-
cept that seeks to explain the competencies and capabilities
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146 which organizations need to develop and maintain in order 204
147 1.3. The research aim and question 205
to successfully engage in the simultaneous co-existence,
148 This research therefore sets out to examine the extent to trade-off and switching between ‘exploration of new possibil- 206
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149 which PPM practices impact orchestrations of organizational ities’ and ‘exploitation of old certainties’ (March 1991; 207
150 ambidexterity, and whether these PPM practices further Tushman and O’Reilly 1996; O’Reilly and Tushman 2011). 208
151 impact the abilities of organizations to channel their ambi- ‘Organisational ambidexterity’ refers to an organization’s abil- 209
152 dextrous capabilities towards superior project performance. ity to ‘ … simultaneously (i.e., concurrently) pursue both 210
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153 At the crux of our enquiry is whether ‘Project portfolio man- incremental and discontinuous innovation and change … ’ 211
154 agement’ enables/increases the effect of ‘Organisational (Tushman and O’Reilly 1996, 24). Two relevant terms of 212
155 ambidexterity’ on ‘Project performance successes’. We there- action are important here. First, the ‘exploration of new pos- 213
156 214
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fore present our research question as: sibilities’ focuses on search and discovery actions (March
157 1991). This construct is both strategic and experimental in 215
158 RQ: To what extent do Project Portfolio Management (PPM) 216
practices impact upon the orchestration of ambidexterity, and do character, being focussed on ‘distant’ knowledge (Petro et al.
159 these practices impact upon an organization’s ability to channel 2019, 2020). Second, the ‘exploitation of old certainties’ 217
160 its ambidextrous capabilities towards superior project focuses on deriving advantage from current and evolved 218
161 performance? 219
management initiatives and other practices, not only recog-
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This research question is framed for consistency with the nizing but also actively regulating and cultivating the organ-
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practice of ‘gap spotting’ in the formulation of research izational efficiencies and internal organizational consistencies
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questions (see Sandberg and Alvesson 2011; H€allgren 2012). with which these activities are associated (March 1991).
165 223
Notably, the gap which our research question addresses Exploitation is therefore more tactical than strategic in char-
166 224
appears to exist despite literature asserting that PPM is opti- acter, being associated with ‘near’ knowledge that is more
167 225
mal for managing and actualizing projects/programmes likely to emerge from existing management information
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(Pellegrinelli, Murray-Webster, and Turner 2015), and other (Petro et al. 2020).
169 227
literature which has primarily focussed on understanding the Generally, organizational ambidexterity literature assumes
170 228
challenges that organizations face which may be resolvable tensions not just between management practices in general,
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through PPM (Petro et al. 2020). Recognizing that such but more specifically, and thinking more reflexively here, it
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research is obliquely related to our own, we explore territory also considers tensions associated with trade-offs which
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(Handfield and Melnyk 1998, 324) in the interplay between organizational ambidexterity effort generates itself. In effect,
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(i) Organizational PPM, (ii) Organizational ambidexterity and it assumes such tensions will be greater where there is more
PRODUCTION PLANNING & CONTROL 3
233 organizational capacity to engage in the necessary structural ‘exploration’ construct of ambidexterity, within this frame, 291
234 separation effort (Simsek 2009). negatively impacted project outcomes, while the 292
235 The literature posits that exploration and exploitation ‘exploitation’ construct exerted positive impact. In summary, 293
236 require different but complementary organizational struc- then, the relationship between organizational ambidexterity 294
237 tures and designs. For example, exploration generally thrives and project-related performance suggests that stronger man- 295
238 under decentralized structures while exploitation requires ifestations of ambidexterity (i.e. ambidextrous capabilities) in 296
239 more centralization. The literature also posits that organiza- individual project management is likely to lead to stronger 297
240 tions simultaneously pursuing and switching between explor- project performance (Jansen, Simsek, and Cao 2012; Cegarra- 298
241 ation and exploitation will outperform those that do not, as Navarro, Jime nez-Jimenez, and Garcia-Perez 2019; Dezi 299
242 they develop complementary competencies (Luger, Raisch, et al. 2019). 300
243 and Schimmer 2018; Wolf et al. 2019). This view of Reservations expressed, concerning preferences for indi- 301
244 ‘complementary’ suggests that an organization’s ability to vidual projects as conduits for organizational ambidexterity, 302
245 pursue exploration is more likely to be successful when include the following. Projects are increasingly complex, par- 303
246 undertaken in the presence of a simultaneous pursuit of ticularly by reliance on distributed and networked teams. 304
247 exploitation and vice versa (Levinthal and March 1993). This can lead to high levels of both horizontal and vertical 305
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248 fragmentation (Fellows and Liu 2012; Alashwal and Fong 306
249 2015). Here, while horizontal fragmentation implies that proj- 307
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2.2. Projects as conduits for organizational ects increasingly involve multiple and heterogeneous special- 308
251 ambidexterity ist-functional actors, vertical fragmentation recognizes 309
252 Three reasons predominate within literature, for regarding project delivery processes as disruptively phase-managed by 310
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individual projects as the most appropriate conduit for actors drawn from multiple levels of organizational hierar-
254 organizational ambidexterity. First, operational routines can chies. Reasons given for high internal fragmentation include 312
255 be implemented and managed (Hayes 2009). Second, project heterogeneous stakeholder objectives (Chipulu et al. 2019), 313
256 management as a discipline is very familiar with demands diverse cultural perspectives on projects (Chipulu et al. 2014, 314
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of formalized project management methods: Milosevic and
Patanakul 2005) against the need to create the space for
unanticipated challenges (Gross 2014; Klein, Biesenthal, and
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associated with balancing the need for certainty (via the use
265 major disruptions to team structures, particularly since proj- This has led to calls for more inter-project coordination (‘No 323
266 ects are inherently ephemeral (So €derlund 2013; Tryggestad, project is an island’, Engwall 2003, 789) recognizing that proj- 324
267 Justesen, and Mouritsen 2013) and temporal (So €derlund ects are increasingly interdependent with other projects and 325
268 2013). Furthermore, most project teams are organized are likely to enhance their performance by leveraging this 326
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269 for delivering one-off tasks with pre-designated (usually) interdependence. Accordingly, in the next section we con- 327
270 completion dates. They are also structured amorphously sider the project portfolio perspective. 328
271 329
(Scott-Young and Samson 2009), allowing for flexible self-
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349 context for managing and coordinating resources across effect, then, project portfolios with individual projects that 407
350 projects, and they can further be used to optimize risk own- are more able to forge relationships with other projects out- 408
351 ership distributions. Using portfolios in this way, an organiza- side the same portfolio, and which therefore become con- 409
352 tion can increase the performance of individual projects nected to other projects with varying skills, expertise and 410
353 within the portfolio. competencies, are more able to generate new ideas. 411
354 Portfolios vary by type (see Bresciani, Ferraris, and Del Nonetheless, they are arguably very often less able to suc- 412
355 Giudice 2018; Luger, Raisch, and Schimmer 2018; Wolf et al. cessfully implement these initiatives. Hence, our first hypoth- 413
356 2019). One type is where constituent individual projects are esis considers that the performance PPM practices impact 414
357 relatively dis-similar, perhaps lacking overall networked upon the orchestration of ambidexterity. 415
358 coordination. This type may be more suitable in circumstan-
H1a. Portfolio performance is correlated with the orchestration of
416
359 ces where the organization is particularly interested in organizational ambidexterity 417
360 ‘explorative’ operations strategies (and individual supporting 418
361 projects). In such portfolios, there is likely to be a focus on 419
362 ‘upstream’ projects requiring new knowledge creation. 2.4. Organizational ambidexterity and superior project 420
363 Examples include New Product Development (NPD) projects. performance 421
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364 Conversely, an organization that is more interested in 422
365 ‘exploitative’ operations strategies may focus its attention on The literature opines that organizations engaged in explor- 423
366 portfolios comprising projects which are either part of the ation-focussed projects are likely to end up in endless ‘search 424
367 same coordinating network(s) or which are in varying ways and innovation’ that remains underexploited (Junni et al. 425
368 homophilic with each other. Here, the emphasis is likely to 2015; Petro et al. 2019) unless they develop strategic capabil- 426
369 be on collaborating for ‘downstream’ endeavours. Examples ities that are ‘rare’ and ‘inimitable’ (Barney 1991, 1996, 2001; 427
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370 include projects focussed on product commercialization. Barney, Wright, and Ketchen 2001). Moreover, investing or 428
371 A number of salient factors discussed in alliance theory promoting projects focussed primarily or solely on explor- 429
372 provide insight into the ambidextrous capabilities of port- ation is an inherently risky strategy. This is because advan- 430
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377
2014; Wassmer, Li, and Madhok 2017; Degener, Maurer, and O
folios (Teller et al. 2012; Sun and Lo 2014; Stettner and Lavie
381 tary resources, they become more likely to emphasize where it both enshrines its current core competencies and 439
382 exploitation. Similarly, portfolios with substantial coordinat- becomes willing and able to search for and develop future 440
383 ing experience (and associated mature/efficient mechanisms) capabilities. 441
384 are more likely to focus towards downstream endeavours, Generally, the high rate of uncertainty associated with 442
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385 thus also preferring exploitation. project environments raises questions relating to how port- 443
386 The use of portfolios serves to mitigate against the chal- folios perform (as ambidexterity conduits) in terms of effect- 444
387 lenges of dual pulls experienced by single projects seeking iveness and efficiency (see Lin, Yang, and Demirkan 2007). 445
388 446
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to pursue contradictory strategic objectives. In this vein, pro- Here, we have drawn upon the earlier works of Neely,
389 ject portfolios are likely to serve as better conduits of ambi- Gregory, and Platts (1995, p. 80) to define ‘performance’ as 447
390 dexterity in that they represent a more appropriate platform ‘ … the effectiveness and/or efficiency of action’. From this 448
391 literature, ‘effectiveness’ refers to the degree to which a pro- 449
to deal with the tensions that arise from exploration and
392 ject meets stakeholder specifications and expectations, while 450
exploitation. This is because portfolios allow for the facilita-
393 ‘efficiency’ refers to resources deployed to meet stakeholder 451
tion of permeability across project boundaries, thus leverag-
394 452
ing more varied competencies for ambidextrous specifications and expectations. Drawing from Cooke-Davies
395 453
management practice. It must be noted, drawing from (2002; p. 188), project performance, thus conceived, further
396 454
Tiwana (2008), that while project portfolios are associated predicts project success.
397 455
with various ambidexterity-related and project performance Drawing from the literature, it is widely proposed that
398 456
benefits, these can be mediated by the ties (relationships) when organizations simultaneously engage in both explor-
399 457
between the participating projects. Thus, projects exhibiting ation and exploitation, they are likely to outperform organi-
400 458
strong inter (homogeneous) portfolio relationships may be zations that emphasize just one of these (Jansen, Simsek,
401 459
much better able to implement exploitative initiatives, while and Cao 2012; Junni et al. 2013; O’Reilly and Tushman 2011;
402 460
at the same time being less able to develop these initiatives. Hughes 2018; Luger, Raisch, and Schimmer 2018). Thus, the
403 461
Conversely, projects within the same portfolios which exhibit literature acknowledges that ambidextrous competencies can
404 462
strong heterogeneous portfolio relationships are arguably enhance performance across all levels of an organization
405 463
very often less likely able to implement exploitative initia- (Junni et al. 2013). This same view is shared in project man-
406 464
tives, while being more likely to develop these initiatives. In agement literature where scholars have found that the
PRODUCTION PLANNING & CONTROL 5
465 existence of ambidextrous capabilities within project teams section focussed on perceived ambidexterity (see the follow- 523
466 significantly contributes to project performance (De Visser ing section). The fifth (final) section of the questionnaire 524
467 et al. 2010; Liu and Leitner 2012; Turner, Maylor, and Swart focussed on perceived synergies and collaboration between 525
468 2015). More often than not, co-dependency between the projects (within a portfolio). 526
469 iterative clarification of objectives, continuous management 527
470 review and continuous striving towards more efficient cycles 528
3.3. Scale measures for ambidexterity
471 of feedback, will lead to a key competency whereby the pro- 529
472 ject is better able to avoid various process and learning traps As with Lubatkin et al. (2006) study, the 12 ambidexterity 530
473 that threaten project performance (Chandrasekaran, items used for the present research were measured by a 5- 531
474 Linderman, and Schroeder 2012). Sohani and Singh (2017) point Likert scale, ranging from 1 (‘strongly disagree’) to 5 532
475 note that ambidexterity plays a critical role in achieving pro- (‘strongly agree’). The scale measures for ‘exploration’ and 533
476 ject success. Hence, our second hypothesis considers that an ‘exploitation’ employed in this study are shown in Appendix 534
477 organization’s ability to channel its ambidextrous capabilities Table A1 (adapted from Lubatkin et al. 2006), which was 535
478 will drive superior project performance. based on earlier measures developed by He and Wong 536
479 H2a. Ambidexterity is correlated with superior project (2004)). The original He and Wong (2004) scale measured 537
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480 performance. views concerning how well organizations shift their product 538
481 design attention and resources between explorative and 539
482 exploitative objectives. The Lubatkin et al. (2006) scale was 540
483 3. The study innovative by employing twelve items balanced evenly 541
484 between ‘exploration’ and ‘exploitation’. These two con- 542
485 3.1. The study and hypotheses 543
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structs were included as distinct, but not separate, within
486 We wish to examine the relationship between PPM, organiza- one unitary measure designed to recognize their comple- 544
487 tional ambidexterity and (individual) project performance mentary contributions to organizational ambidexterity. This 545
488 success. Study of the literature aligned to our own experi- ‘additive’ measurement approach has also since been fol- 546
489
490
491
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493
ence indicates possible relationships, but clearly a quantita-
tive study was needed. We, therefore, undertook a survey
relating these three areas together. While this raises the pos-
sibility of Common Methods bias (Podsakoff et al. 2003), it
O lowed by other scholars (see Jansen, Simsek, and Cao 2012,
Jansen et al. 2009; Yu, Patterson, and de Ruyter 2013).
As the questionnaire (Appendix B) shows, we made the
following changes to the original Lubatkin et al. (2006) scale
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549
550
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does nonetheless provide an initial study of these measures. First, on the grounds that project performance
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494 relationships. 552
success criteria have traditionally involved independent
495 553
measures of time, cost and quality (e.g. Atkinson 1999;
496 554
Ojiako, Johansen, and Greenwood 2008; Chipulu et al. 2019),
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tion (questions 1–5) focussed on respondent demographics, changes to Lubatkin et al.’s exploration items.
501 559
while the second section tapped evaluations of overall
502 560
organizational success relative to competitor organizations.
503 3.4. Hypotheses 561
The third section focussed on more specific evaluations of
504 562
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project performance, construing ‘PPM performance’ in simple The hypotheses stated above now become more precisely:
505 563
terms as a combination of ‘PPM effectiveness’ and ‘PPM suc-
506 H1b. Portfolio performance (PPM effectiveness and PPM success) 564
cess’. Here, ‘PPM effectiveness’ denotes the degree to which
507 is correlated with the organizational ambidexterity (using 565
use of PPM is perceived to meet stakeholder specifications
508 Lubatikin’s measure). 566
or expectations (see Neely, Gregory, and Platts 1995). On the
509 H2b. Organizational ambidexterity (using Lubatikin’s measure) is 567
other hand, our ‘PPM success’ construct denotes perceptions
510 correlated with project-management success (schedule/budget/ 568
that the intended goals of every project within the portfolio
511 quality/satisfaction). 569
were actually delivered (see Chipulu et al. 2019, p. 1074).
512 570
PPM effectiveness comprises: (i) ‘Future preparedness’
513 571
(Meskendahl 2010; Petro and Gardiner 2015), (ii) ‘Strategic fit’
514 3.5. Administration of the survey instrument 572
(Jonas 2010; Petro and Gardiner 2015), (iii) ‘Project portfolio
515 573
balance’ (Jonas 2010; Petro and Gardiner 2015) and (iv) The survey instrument (in English) was administered online
516 574
‘Synergies/collaboration’ between business units (Jonas to respondents predominantly based in the Middle East.
517 575
2010). While ‘Future preparedness’, ‘Strategic fit’ and Each of the researchers approached practitioners within their
518 576
‘Synergies/collaboration’ employed three measures of assess- individual networks on the basis of likely relevant (current or
519 577
ment, ‘Project portfolio balance’ employed five measures. very recent) experience. As Chipulu et al. (2014) noted,
578
520
521 Four measures were used for ‘PPM success’ (schedule, although arguably a form of non-probability sampling tech-
579
budget, quality and customer satisfaction). These associations nique, this means of identifying survey respondents is gener-
522 580
are diagrammatically represented in Figure 1. The fourth ally employed in research settings such as this study, where
6 U. OJIAKO ET AL.
581 639
Future preparedness
582 640
583 641
584 Strategic fit 642
585 643
586 Project porolio balance
644
587 645
588 646
589 Synergies/collaboraon 647
590 PPM 648
591 Effecveness 649
PPM Performance
592 650
593 651
594 652
595 653
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596 Schedule 654
597 655
598 656
PPM Success Budget
599 657
600 658
601 659
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Quality
602 660
603 661
604 Customer sasfacon 662
605
606
607
608
609
Figure 1. Influence relationships.
Synergies 1 0.627
621 The overall industry distribution of the respondents suggests Synergies 2 0.786 679
622 a combination of Construction (25.6%), Engineering (16.2%), Synergies 3 0.879 680
623 Allied consultancy (9.4%) and Manufacturing (10%), amount- 681
624 ing to 61.2% of the total respondents. About 41.9% of the Factor analysis was carried out on the selected variables 682
625 respondents worked for organizations with more than 300 in order to establish the three central constructs comprising 683
626 employees, 26.9% worked for organizations employing the research model: ‘PPM effectiveness’, ‘Ambidexterity’ and 684
627 between 75 and 300 staff. More than 65% of the respond- ‘Project performance’. An exploratory factor analysis (CFA) 685
628 ents (107 respondents) were drawn from senior to top man- was conducted using the factor reduction function in IBM 686
629 agement levels of their organizations. SPSS Statistics software version 22. To test the factor loadings 687
630 per construct, a Varimax rotation with a minimum of 25 iter- 688
631 ations was used. In summary, the four variables used to 689
4. Analysis
632 describe PPM effectiveness (‘future preparedness’, ‘strategic 690
633 4.1. Factor analysis fit’, ‘project portfolio balance’, and ‘synergies/collaboration’) 691
634 loaded successfully on the four different factors, as shown in 692
The survey data were analysed using a combination of
635 Table 1. A few items, as shown, were now dropped for not 693
approaches including (i) Factor, (ii) Correlation and (iii)
636 contributing. 694
Regression analysis. Adopting an approach similar to that of
637 The two variables for ambidexterity (‘Exploration’ and 695
638 Chipulu et al. (2014), we opted to test both hypotheses 696
‘Exploitation’) loaded successfully, with their 12 items loading
simultaneously.
PRODUCTION PLANNING & CONTROL 7
697 on two corresponding factor domains in line with expect- The relationship of ambidexterity with both was first of all 755
698 ation. This is shown in Table 2. A few items designed to tap tested, thereafter testing mediation with project performance 756
699 ambidexterity were, however, jettisoned due to their rela- separately due to its greater involvement with ambidexterity. 757
700 tively poor contributions. The two variables (‘Performance’ All factors were then tested for reliability and internal con- 758
701 and ‘Success’) used to describe project performance and suc- sistency. These tests used all items that had loaded success- 759
702 cess also loaded successfully on two different factors as fully into their relevant factors by Cronbach Alpha (Nunnally 760
703 shown in Table 3. All items for this construct loaded success- 1978). In taking this decision it was noted that while 761
704 fully and were retained. Cronbach’s alpha has traditionally been used for this purpose, 762
705 composite reliability tests are becoming more popular; none- 763
706 theless, according to Peterson and Kim (2013) influential 764
707 Table 2. Factor analysis for ‘Ambidexterity’. study, the differences are ‘relatively inconsequential’. The test 765
Q11
708 Factors showed all factors to be reliable. Almost all alphas were 0.7 766
709 and above, as Table 4 shows. 767
Items 1 2
710 Although the ‘PPM performance’ items loaded successfully 768
Exploration 1 0.849
711 on two separate factors, its two constituent factors, 769
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Exploration 2 0.817
712 Exploration 3 0.846 ‘Performance’ and ‘Success’ exhibited reliabilities below 0.7. 770
713 Exploration 4 0.768 The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy 771
Exploration 5 0.593
714 Exploration 6 0.499 was carried out to ascertain the appropriateness of using fac- 772
715 Exploitation 1 0.444 tor analysis and to further confirm the reliability of those 773
716 Exploitation 2 0.858
measures selected for field investigations (Kaiser 1970). This 774
Exploitation 3 0.445
717 775
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Exploitation 4 0.436 measure represents the ratio between variables’ squared cor-
718 Exploitation 5 0.622 relation and their squared partial correlation. A KMO value 776
719 Exploitation 6 0.582
closer to 0 represents a diversion between those variables, 777
720 and hence, factor analysis may not be appropriate for test- 778
721
722
723
724
725
Table 3. Factor analysis for ‘PPM performance and success’.
Items 1
Factors
O 2
ing. Good KMO results are those with a value that is higher
than 0.7 (Hutcheson and Sofroniou 1999). KMO was meas-
ured using SPSS and presented in Table 5, along with the Q4
reliability results.
779
780
781
782
783
Project portfolio performance 1 0.737
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726 Project portfolio performance 2 0.821 784
727 Project portfolio performance 3 0.854 4.2. Correlation analysis 785
728 Project portfolio performance 4 0.758 786
Project portfolio success 1 0.748
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733 791
734 Q12 Table 4. Reliability test and KMO results for all factors. 792
735 Factor Number of items Items reduced to Cronbach alpha KMO 793
736 Project portfolio performance 4 NA 0.829 0.750 794
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1.000
11
814 through the descriptive analysis. A normal bell curve was 872
–
–
–
–
–
–
–
–
–
–
815 detected for almost all the variables. This was slightly skewed 873
816 to the right-hand side, indicating some participant optimism 874
0.778
817 in responding to the field questionnaire. Second, the 875
10
818 Kolmogorov–Smirnov statistical non-parametric test was car- 876
–
–
–
–
–
–
–
–
–
–
819 ried out to confirm the visual findings for normality. A two- 877
820 tailed correlation test was therefore performed to capture all 878
0.710
0.641
821 possibilities of correlation. 879
9
–
–
823 strong and highly significant (r¼ þ0.501 at sig ¼ 0.01) for the 881
824 relationship between ambidexterity and project performance, 882
825 and moderately strong and highly significant (r¼ þ0.593 at 883
0.599
0.724
826 0.930 sig ¼ 0.01) for the relationship between ambidexterity and 884
8
–
–
–
–
–
–
–
–
LY
828 Ambidexterity was found highly correlated with the com- 886
829 bined/clustered global factor ‘Performance’ and ‘Success’ at 887
0.603
0.736
0.947
0.763
Bold italic font represents a check for collinearity – that is, a correlation that exceeds 0.8 may trigger a case of collinearity (similar items) as per Field (2009).
830 r¼ þ0.641 and sig ¼ 0.01 also. Moreover, taking exploration 888
7
831 and exploitation factors separately, these correlated with the 889
Correlation with row number
–
–
–
–
–
–
–
832 factors for project performance and project success, both sep- 890
833 arately and clustered. ‘PPM effectiveness’ was found highly 891
N
0.549
0.555
0.498
0.737
0.586
835 suggesting that the more an organization or its business units 893
–
–
–
–
–
–
839 (Portfolio performance being PPM effectiveness and PPM suc- 897
–
–
–
–
–
840 cess together). In particular, the model showed ‘PPM effective- 898
841 ness’ highly and strongly correlated with ‘Performance’ at 899
F
842 900
0.821
0.490
0.454
0.516
0.561
0.497
0.571
845 correlated within the model, a check for collinearity was 903
846 necessary prior to moving on to regression analysis. 904
0.847
0.635
0.476
0.497
0.691
0.619
0.625
0.699
847 905
3
849 907
Bold font refers to relationships directly related to the quantitative research model.
851 for example, upon measuring two very similar variables. For 909
2
852 instance, one could be the ‘age’ of a respondent and another 910
PR –
–
853 could be their ‘year of birth’. Collinearity, in such cases, can 911
Bivariate correlation analysis using the Pearson correlation method.
854 912
easily inflate regression values (Dormann et al. 2013).
855 913
0.539
0.501
0.450
0.498
0.333
0.444
0.391
0.494
0.447
856 914
and ‘Ambidexterity’ as highly correlated. This, however, has
Correlation is significant at the 0.01 level (two-tailed).
857 915
already been assumed from widespread literature, reviewed
858 916
earlier, which identified ‘Exploration’ and ‘Exploitation’ as the
859 917
Average project portfolio success
863 921
PPM effectiveness
Portfolio balance
Use of synergies
864 922
Ambidexterity
Exploration
10
11
LY
ANOVA F
944 VIF 1.000 1.000 1.000 1.774 for all 1002
945 c. Results of regression analysis for organizations with 75–150 employees. 1003
946 (b) 1004
Ambidexterity 0.584 0.016
947 PPM effectiveness 0.827 0.700 0.687 1005
948 R2 0.341 0.684 0.490 0.490 1006
949 Adjusted R2 0.308 0.668 0.466 0.437 1007
N
ANOVA F 10.361 43.288 20.163 9.140
950 VIF 1.000 1.000 1.000 3.164 for all 1008
951 d. Results of regression analysis for organizations with 150–300 employees 1009
952 (b) 1010
953
954
955
956
957
Ambidexterity
PPM effectiveness
R 2
Adjusted R2
ANOVA F
VIF
0.146
0.021
0.033
0.392
1.000
O 0.588
0.345
0.307
8.964
1.000
e. Results of regression analysis for organizations with 300 and more employees
0.207
0.043
0.013
0.764
1.000
0.143
0.124
0.056
0.062
0.478
1.527 for all
1011
1012
1013
1014
1015
F
958 (b) 1016
Ambidexterity 0.544 0.205
959 PPM effectiveness 0.820 0.582 0.413 1017
960 R2 0.296 0.672 0.339 0.352 1018
O
965 1023
966 1024
967 IBM SPSS Statistics software version 22 (IBM SPSS Statistics, capabilities significantly contribute to the performance of 1025
968 Armonk, NY) suggests that any value above 2.0 is of concern. projects (H2b), but also that PPM capabilities do moderate 1026
PR
969 Based on this, several scenarios for the two constructs and the relationship between organizational ambidexterity and 1027
970 their constituent variables were performed. The VIF for all PPM success. Our findings thus support earlier literature 1028
971 variables can be seen in Table 7 to be less than 2.0, indicat- suggesting that more ambidextrous capabilities will lead to 1029
972 ing that collinearity or multi-collinearity was not an issue. higher levels of business and operational performance. As 1030
973 shown in Table 5, the coefficient b (i.e. the slope of the 1031
974 regressed line) for ambidexterity in Model 1 was positive 1032
975 4.3. Regression analysis and test for mediation 1033
and highly significant (b ¼0.525 at sig < 0.01), therefore, sup-
976 The previous section presented a correlation analysis porting this finding. Our proposition that the more an 1034
977 between all the model variables. This section takes the ana- organization or its business units exhibit an effective appli- 1035
978 lysis one step further using the Ordinary Least Square (OLS) 1036
cation of PPM practice (measured by PPM effectiveness), the
979 regression method. OLS regression tends to be used to pre- 1037
higher the level of ambidexterity (as presented in Model 2),
980 1038
dict the behaviour of relationships and how they could act is supported by the highly significant positive b coefficient
981 1039
in future events (Field 2009). Regression was carried out to (b ¼ 0.674 at sig < 0.01) (H1b).
982 1040
explore whether PPM practices mediate the relationship To further explore whether PPM mediates the relationship
983 1041
between ambidexterity and an organization’s performance between ambidexterity and an organization’s performance,
984 1042
(Table 7). three steps were followed. First, we established that the
985 1043
In effect, our findings confirmed the general hypothesis independent variable (i.e. ‘PPM effectiveness’) influences the
986 1044
that not only does the existence of ambidextrous mediator (i.e. ‘Ambidexterity’). This was established and
10 U. OJIAKO ET AL.
1045 supported in Model 2, where b ¼0.674 at sig < 0.01. Second, platform, each project maintains consistent and 1103
1046 we established that the independent variable (‘PPM effective- focussed processes. 1104
1047 ness’) influences the dependent variable (performance). This 1105
1048 was established in Model 3 at b i0.480 and sig < 0.05, as 5.2. PPM’s ability to drive project performance through 1106
1049 shown in Table 5. In the last step, the challenge was to dem- enhanced ambidextrous capabilities 1107
1050 onstrate that the mediator (ambidexterity) influences the 1108
As relates to the second part of the research question (Do
1051 dependent variable (performance) with the independent vari- 1109
PPM practices impact upon an organization’s ability to channel
1052 able (‘PPM effectiveness’) controlled. If, in this last step, the 1110
its ambidextrous capabilities towards superior project perform-
1053 effect of PPM effectiveness on performance is found to be 1111
ance?), we found that greater (both effective and efficient)
1054 no longer significant when the mediator ‘ambidexterity’ is in 1112
use and application of PPM practices led to enhanced
1055 the model, then full mediation can be indicated – depending 1113
orchestration of higher levels of ambidexterity (further entail-
1056 on how significant the model was. 1114
ing that the more an organization would be able to channel
1057 Recognizing the above, and as shown in Model 4 (Table 1115
ambidextrous capabilities towards positive project perform-
1058 10) , a multiple regression analysis was performed using the 1116
Q5 ance). The literature suggests that project portfolios which
1059 two variables as independent variables – ‘PPM effectiveness’ 1117
LY
1060 ensure tight resource-based, contextual and structural syner- 1118
and ‘Ambidexterity’. The b coefficient for ambidexterity was gies between their individual constituent projects are,
1061 found to be positive and significant at b ¼ 0.445 and 1119
1062 because of their improved process and practices integration 1120
sig < 0.05. The VIF for all variables in the four models was and complementarity (see Sun and Lo 2014), better able to
1063 measured and found to be less than 2.0, indicating that collin- 1121
1064 develop expertise for delivering overall PPM effectiveness 1122
earity or multi-collinearity did not exist in these models, entail- (Tiwana 2008). This suggests that an ‘exploitative’ perspective
1065 1123
N
ing their results are acceptable (Myers 1990; Field 2009). of PPM may outperform ‘explorative’ perspectives. The
1066 1124
1067 underlying explanation, here, is that an organization’s PPM 1125
5. Discussions expertise may become more efficient and effective with
1068 1126
1069
1070
1071
1072
1073
The study set out to explore to what extent PPM practices
impact orchestrations of ambidexterity, and whether these
practices further impact the abilities of organizations to
O
channel their ambidextrous capabilities towards superior pro-
ject performance. Generally speaking, these relationships
iterative use for the same PPM delivery processes. In sug-
gesting this, Bierly and Daly (2007) noted that despite its
relatively low optimal level, exploitation, compared to explor-
ation, tends to be the stronger performance driver.
Furthermore, we also reflect critically on our general find-
1127
1128
1129
1130
1131
F
1074 ing that ambidextrous competencies and capabilities may 1132
were found to exist. However, our findings do also bring to
1075 increase the performance of an individual operating entity. 1133
the fore a number of discussion points which we theorize
1076 This may happen, Cao, Gedajlovic, and Zhang (2009) con- 1134
below in the light of concepts drawn from organizational
O
1085 ambidexterity strongly and highly correlated with higher lev- boundary, or more specifically, outside pre-existing portfolio 1143
1086 els of PPM performance (PPM effectiveness and PPM suc- boundaries (as in the case of organizational participants in 1144
1087 cess). Also pertinent here is literature espousing strong ties strategic alliances). Under such circumstances, project per- 1145
1088 between collaborating projects within a portfolio and formance (assessed as PPM effectiveness and PPM success) 1146
1089 enhanced ambidexterity (Tiwana 2008). On this view, will depend on how well projects balance resource con- 1147
1090 ‘portfolios’, because of their boundary-spanning leveraging
straints against the ability to draw on complementary 1148
1091 competencies, are more able to cater for those inconsistent
strengths from outside traditional portfolio networks. This is 1149
1092 routines that are a hallmark of organizational ambidexterity
because during intense competition within internal environ- 1150
1093 (see Stettner and Lavie 2014). In other words, by using a
ments, it is unlikely that other portfolios will be particularly 1151
1094 portfolio of projects, organizations may sidestep tensions
willing to share scarce resources (Tsai 2002). To conclude, it 1152
1095 may be surmised that project portfolios are only able to 1153
which would be harder to overlook should they arise within
1096 serve as mechanisms for orchestrating ambidexterity and at 1154
a single project; moreover, portfolios allow for concurrent
1097 the same time, for enhancing performance, when their activ- 1155
pursuit of project delivery strategies that employ both
1098 ities are robustly coordinated at project level. 1156
exploitative competencies (focussed on increasing existing
1099 1157
market share) and explorative competencies (focussed on
1100 6. Conclusions 1158
new revenue streams). When ambidexterity is orchestrated
1101 1159
through portfolios, the organization can better ensure that The study undertook to ascertain whether effects of organ-
1102 1160
with each project representing an alternative implementation izational ambidexterity on project performance are stronger
PRODUCTION PLANNING & CONTROL 11
1161 for orchestration of ambidexterity at portfolio level. Its strong present research through more granular studies of portfolio 1219
1162 positive finding, specifically that PPM practice does indeed effects and optimization. Understanding the nature of inter- 1220
1163 enhance prospects for ambidextrous management practice project variation and integration should enable more value 1221
1164 to contribute to project success, clearly underscores the creation for the organization through enhanced understand- 1222
1165 need for project portfolios to be designed and operated with ing of how best to combine insights from not only other 1223
1166 such enhancement in mind. And yet it also clarifies that projects but also the wider organization, as a means to cre- 1224
1167 future studies require more theoretical nuance to tease out ate the conditions for enhanced performance. 1225
1168 the specific portfolio effects at issue, being mindful in par- 1226
1169 ticular to recognize that positive and negative effects may 1227
Disclosure statement
1170 occasionally be bundled together. This further entails, we 1228
1171 would suggest, that practitioners conceive of portfolio design No potential conflict of interest was by reported the author(s). Q7 1229
1172 with some openness to the possibility that there is always a 1230
1173 calculus of positives and negatives to consider for purposes 1231
Notes on contributors
1174 of design optimization. 1232
1175 In enabling us to conclude with the above recommenda- 1233
LY
1176 tion, our research has been deeply concerned with the Udechukwu (Udi) Ojiako is Professor of Engineering 1234
1177 actuality of practice in both project and operations manage- Management at the University of Sharjah, United 1235
1178 ment. We designed our studies in a manner consistent with Arab Emirates. He is also Visiting Professor in 1236
1179 Management at the Risk Institute, University of Hull 1237
quantitative studies, recognizing in particular persistent and
and Visiting Professor in Business at UNIZIK Business
1180 ongoing calls for more empirical research in operations man- School, Nnamdi Azikiwe University (Nigeria). Udi has
1238
1181 1239
N
agement (Fisher, Olivares, and Staats 2020; Terwiesch 2019; held prior academic positions in the UK, South Africa
1182 Q6 Terwiesch et al. 2020) and project management (Geraldi and and now the United Arab Emirates. He holds a PhD 1240
1183 So€derlund 2016, 2018). We also acknowledge that there is in Project Management obtained from the University 1241
1184 also, currently, very little empirical research that has so far of Northumbria (2005), a PhD in Business obtained from University of 1242
1185
1186
1187
1188
1189
revealed core project-related interdependencies engaged in
tions of ambidexterity through PPM practices, and we recom- Management obtained from the British University in Dubai (BUiD). His
1201 mend that future studies pay more attention to the specifics. articles have been accepted and published in journals such as the 1259
1202 As expected for studies of this nature, ours did have limi-
Chinese Business Review, International Journal of Project Management, 1260
1203 Production Planning & Control and the ASCE Journal of Management in 1261
tations, which provide a platform for future studies. First, Engineering. He is a recipient of the 2016 Project Management Institute
1204 1262
despite our recognition in the findings that management of Doctoral Research Grant.
1205 1263
the contradictions associated with ambidexterity could be
1206 1264
impacted by salient organizational-wide attributes, our study
1207 1265
specifically did not explore these attributes. Our second limi- Alasdair Marshall is currently Associate Professor of
1208 Risk Management having joined the Southampton
1266
tation relates to the recognition within literature that the
1209 Business School in September 2008. Both his MA 1267
relationship between organizational ambidexterity and per-
1210 (Hons) degree and PhD are in Social Science, from 1268
formance may vary not only across levels, but also under dif-
1211 the University of Glasgow. Between 2003 and 2008, 1269
ferent functional, structural and resource conditions.
1212 Alasdair worked at Glasgow Caledonian University, 1270
Accordingly, it can be argued that more detailed research is where he contributed to Risk Management teaching
1213 1271
necessary, pertaining to dynamics of inter-project variation within Caledonian Business School and was involved
1214 in a broad range of research and consultancy proj- 1272
and integration and how these may impact upon designing
1215 ects within the Cullen Centre for Risk and Governance. His articles have 1273
organizations for optimal interaction (between different proj-
1216 been accepted and published in journals such as International Journal of 1274
ects being pursued by the organization), and horizontal and
1217 Project Management, Il Pensiero Economico Italiano, Journal of Business 1275
vertical interaction with other areas of the organization. We Ethics and Production Planning & Control.
1276
1218
think this would be a good approach for improving on
12 U. OJIAKO ET AL.
1277 Terry Williams is Director of the Risk Institute, Barney, J. 2001. “Resource-Based Theories of Competitive Advantage: A 1335
Ten-Year Retrospective on the Resource-Based View.” Journal of
1278 University of Hull. He previously served as Dean of 1336
Hull University Business School and before that, Management 27 (6): 643–650. doi:10.1177/014920630102700602.
1279 Barney, J., M. Wright, and D. Ketchen. 2001. “The Resource-Based View of 1337
Director of the School of Management, University of
1280 Southampton. Terry has worked in both the public the Firm: Ten Years after 1991.” Journal of Management 27 (6): 1338
1281 and private sector, beginning as a Lecturer in 625–641. doi:10.1177/014920630102700601. 1339
1282 Operational Research at the University of Bendoly, E., R. Croson, P. Goncalves, and K. Schultz. 2009. “Bodies of 1340
1283 Strathclyde, while completing his PhD research. He Knowledge for Research in Behavioral Operations.” Production and 1341
Operations Management 19 (4): 434–452. doi:10.1111/j.1937-5956.
1284 later became Professor and Department Head, where 1342
1285 he worked in research and consultancy, modelling project behaviour 2009.01108.x. Q8 1343
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1286 Institute of Mathematics and its Applications, a Chartered Management: Assessing Recent Findings and Revisiting Old 1344
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PRODUCTION PLANNING & CONTROL 17
LY
1872 11 Fine-tunes what it offers to keep its current Constantly survey existing customers for satisfaction. 1930
customers satisfied.
1873 12 Penetrates more deeply into its existing customer base. Enhance and improved what we offer to keep its current 1931
1874 customers satisfied. 1932
The changes made were – we separated quality and cost (item 7 of Lubatkin et al) and then dropped item 12 of Lubatkin et al’s Exploitation measures. No
1875 1933
changes in the Exploration items.
1876 1934
1877 1935
N
1878 1936
1879 1937
Appendix B. 11. There is a good balance of project focussed on new and existing
1880 1938
1881
1882
1883
1884
1885
The questionnaire
First section: Respondents’ demographic information
O
‘Gender’; ‘Age’; ‘Educational Background’; ‘Professional Background’;
‘Professional Level’; ‘Industry Background’; ‘Number of years’ working
12.
13.
14.
areas of application
There is a good balance of project focussed on new and existing
technologies
There is a good management of risks in our projects
There is a good balance in our projects as relates to different
implementation phases (early/late phases)
1939
1940
1941
1942
1943
15. There is a good balance in our projects to generate a constant
F
1886 experience’; ‘Industry sector’; ‘Number of employees in current 1944
cash flow
1887 organisation’. 1945
1888 1946
O