The Missing Link in Project Governance: Permeability and Influence of Governance Precepts on Decision Making in the Project Domain

Abstract

This study aims to understand how the information about corporate governance precepts permeates the organization within the project environment and influences decision making. After analyzing 157 decisions, we concluded that there is a lack of robustness in the governance mechanisms to convey this information consistently. However, when there is strength to break the gap and reach the agent, the decisions made in the projects are 16.5 times more likely to be aligned with corporate governance. This finding reveals the importance of effective and consistent project governance mechanisms.