A multiple parallel mediation between transformational leadership and project-based performance — A process model

Abstract

Purpose: Our purpose to write this paper is to analyze how VRIO mediates the relationship between transformational leadership and project performance by examining the direct and mediated relationships on project performance outcomes. This study combined the two dynamic concepts: project management and strategic management with the support of both literatures. Design/methodology/approach: The resource-based view is operationalized to analyze the effect of project management assets and characteristics to gain a competitive edge in the industry and market as whole. The parallel mediation has been analyzed applying VRIO framework between transformational leadership and project performance, moreover its impact on firm-based performance is supported by the literature. Finding: Transformational leadership scientifically predicts project performance. Results demonstrated two mediations to be accepted (Rare resources and Valuable Resources) however, both got rejected in the Pakistani context. Research Limitations: The sample size considered for our study was only 256 and data were gathered from comparatively small software companies due to the fact that software companies in Islamabad and Rawalpindi are small comparatively in India or USA. Practical Implication: The research contributions are quite interesting; these would be followed by the transformational leaders in software industry to attain competitive edge in market using project assets characteristics. Originality/value: A useful combination of transformational leadership and resource-based view theory is used to reach project potential and improvements to sustain in competition.