The Uncertainty of the Organizational Environment as Cause of Unfavorable Budget Deviations in the Projects of Portuguese Construction Companies

Abstract

Construction companies are increasingly concerned with new strategic guidelines and ways of managing project budgets to improve their competitiveness and sustainability. Thus, with this work, the authors analyse the relationship of the uncertainty of the organizational environment with other constructs, as causes of unfavorable budgetary deviations in the projects of Portuguese construction companies. For its development, quantitative research methods and techniques were adopted. The results presented in the study show a high correlation between the five first-order constructs (internal environment, external environment, time/delay, project process/monitoring, and project financing) justified by the literature review and justify the perception regarding the uncertainty in the organizational environment and other constructs as factors that determine the causes of unfavorable budgetary deviations in construction companies' projects. It should be noted that the objectives outlined for this study were achieved by providing complementary knowledge in this area of research.