AGILITY AND THE ROLE OF PROJECT — INTERNAL CONTROL SYSTEMS FOR INNOVATION PROJECT PERFORMANCE

Abstract

As a reaction to the rapidly changing environment, organisations increasingly use agile project management (APM) methods to develop innovation. The associated process changes necessitate the adaption of organisational structures and control systems. This study draws on Simon’s Levers-of-Control framework (LOC) to explore the impact of different control levers on innovation project performance. Based on a survey of 316 project managers and product owners, the results suggest that the use of interactive project control systems and project-internal belief systems has a positive impact on the innovation outcome, regardless of the degree of agility of the project. Furthermore, we reveal that a strong project environment leads to increased use of control mechanisms on the project level and has a conducive impact on innovation project performance. The study is among the first to apply the LOC on the project level and integrate it into the agile context.