Examining the relationship between project management office functions and project performance in Ghana: a structural equation modelling approach

Abstract

PurposeThe aim of this study is to investigate the influence of Project Management Office (PMO) functions on project performance in businesses in Lower Middle-Income Countries (LMIC) using Partial Least Square–Structural Equation Modelling (PLS–SEM).Design/methodology/approachUtilizing close-ended questionnaires in a cross-sectional survey, 256 project professionals from 10 business sectors in Ghana views were elicited. The questions were developed through a comprehensive literature review and involved 27 PMO functional measures grouped into 6 and 19 project performance measures grouped into 6. Data collected was then analysed using the PLS–SEM to validate the hypothetical relationship.FindingsThe PLS–SEM model supported 13 (t > 1.65) out of 36 hypotheses investigating the relationship between PMO functions and project performance. Variations in the PMO functions moderately (R2 = 0.34) explained the performance of projects. The aggregate activities of the PMO had the highest significant influence on environmental performance (R2 = 0.467). The topmost PMO function was identified as monitoring and controlling project performance, and it was significantly associated with cost (ß = 0.265, p < 0.05), quality (ß = 0.291, p < 0.05) and project scope (ß = 0.265 p < 0.05) performance.Research limitations/implicationsThis research has brought more illumination to the functions of PMOs and its influence on project performance. The results suggest that PMO activities, when tailored to the business context, can significantly change project performance variables.Originality/valueMost research on PMO and project performance has been limited to developed countries or a single sector. This study uniquely expands the business sectors and focuses on LMICs.