The relationship between project management and small to medium enterprise profitability
- Publisher:
- The Institute for Business and Finance Research
- Publication Type:
- Conference Proceeding
- Citation:
- Global Conference on Business and Finance Proceedings, 2015, 10 (1), pp. 344 - 354
- Issue Date:
- 2015
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| Filename | Description | Size | |||
|---|---|---|---|---|---|
| Pollack & Adler, 2015 Profit.pdf | Published version | 496.13 kB |
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It is a common assumption that using project management is good for business. This research seeks to address this generally un-substantiated assumption by testing whether using project management as a core business skill has a positive influence on the profitability and sales of small to medium enterprises. Data used in this research is drawn from two surveys conducted by the Australian Bureau of Statistics covering the years 2004 – 2011. From this data models of the influence of project management were created using binary logistic regression and multiple linear regression, to examine whether the use of project management to undertake core business activities had a significant effect on small to medium enterprise profitability and total sales. When controlling for other comparable core business skills, the results show that project management does have a significant positive impact on profitability and sales. Similar results were also found for the use of IT professional skills, IT support technician skills and financial skills to undertake core business activities.
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