The effects of performance measurement on megaproject performance: the moderating effects of project complexity

Abstract

PurposeMegaproject performance measurement (MPM) has received great attention in the project management community, but it primarily focused on the design of performance measures or frameworks. Yet, whether MPM utilization can improve megaproject performance and how project actors use MPM to improve megaproject performance is less well understood. This study aims to investigate whether and how the use of MPM can contribute to better megaproject performance.Design/methodology/approachThrough the lens of the lever of control, this study conceptualizes MPM utilization as diagnostic use and interactive use. A holistic research model and related hypotheses integrating MPM use, project complexity and megaproject performance were established. The model was validated using a partial square-structural equation modeling method.FindingsBased on 214-megaproject data collected through a questionnaire survey in China, the results show positive effects of diagnostic use and interactive use on megaproject performance. Both, however, have substitutional interaction effects. The moderating results suggest that the higher project complexity weakens the positive effects of MPM utilization on megaproject performance.Originality/valueThis study advances megaprojects performance measurement and management literature by validating the value of MPM utilization on performance. It also presents practical implications for project managers to improve performance by appropriate MPM utilization.