Business Case Control in Project Portfolios - An Empirical Investigation of Performance Consequences and Moderating Effects

Kopmann, J; Kock, A; Killen, CP; Gemunden, HG

Business Case Control in Project Portfolios - An Empirical Investigation of Performance Consequences and Moderating Effects

Kopmann, J Kock, A Killen, CP

Gemunden, HG

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Publication Type:: Journal Article
Citation:: IEEE Transactions on Engineering Management, 2015, 62 (4), pp. 529 - 543
Issue Date:: 2015-11-01

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Field	Value	Language
dc.contributor.author	Kopmann, J	en_US
dc.contributor.author	Kock, A	en_US
dc.contributor.author	Killen, CP https://orcid.org/0000-0002-2370-7856	en_US
dc.contributor.author	Gemunden, HG	en_US
dc.date.issued	2015-11-01	en_US
dc.identifier.citation	IEEE Transactions on Engineering Management, 2015, 62 (4), pp. 529 - 543	en_US
dc.identifier.issn	0018-9391	en_US
dc.identifier.uri	http://hdl.handle.net/10453/41408
dc.description.abstract	© 1988-2012 IEEE. Practitioners place strong emphasis on business cases with the expectation that using business cases to inform and drive investment decisions will assist in creating value from those investments. Maximizing the value generated by project investments is a central aim of the project portfolio management, and the business case provides the underlying rationale for the evaluation of the value created in each project. However, research regarding the use of business cases at a project portfolio level is scarce, and there is a little guidance for portfolio managers on when and how to control the business cases. We identify three elements of a business case control at the portfolio level - the initial review, the ongoing monitoring during the project execution, and the postproject tracking until the business case is realized - and investigate the relationship between business case control and project portfolio success. Furthermore, we analyze enablers and contingencies for the application of the business case control. Based on a cross-industry sample of 183 firms, we find that the business case control is positively related to the project portfolio success. Accountability for business case realization and corresponding incentive systems increase this positive effect. Finally, we show that the portfolio complexity also positively moderates the relationship.	en_US
dc.relation.ispartof	IEEE Transactions on Engineering Management	en_US
dc.relation.isbasedon	10.1109/TEM.2015.2454437	en_US
dc.subject.classification	Business & Management	en_US
dc.title	Business Case Control in Project Portfolios - An Empirical Investigation of Performance Consequences and Moderating Effects	en_US
dc.type	Journal Article
utslib.citation.volume	4	en_US
utslib.citation.volume	62	en_US
utslib.for	091503 Engineering Practice	en_US
utslib.for	0915 Interdisciplinary Engineering	en_US
utslib.for	08 Information and Computing Sciences	en_US
utslib.for	09 Engineering	en_US
utslib.for	15 Commerce, Management, Tourism and Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building/School of Built Environment
utslib.copyright.status	open_access
pubs.issue	4	en_US
pubs.publication-status	Published	en_US
pubs.volume	62	en_US

Abstract:

© 1988-2012 IEEE. Practitioners place strong emphasis on business cases with the expectation that using business cases to inform and drive investment decisions will assist in creating value from those investments. Maximizing the value generated by project investments is a central aim of the project portfolio management, and the business case provides the underlying rationale for the evaluation of the value created in each project. However, research regarding the use of business cases at a project portfolio level is scarce, and there is a little guidance for portfolio managers on when and how to control the business cases. We identify three elements of a business case control at the portfolio level - the initial review, the ongoing monitoring during the project execution, and the postproject tracking until the business case is realized - and investigate the relationship between business case control and project portfolio success. Furthermore, we analyze enablers and contingencies for the application of the business case control. Based on a cross-industry sample of 183 firms, we find that the business case control is positively related to the project portfolio success. Accountability for business case realization and corresponding incentive systems increase this positive effect. Finally, we show that the portfolio complexity also positively moderates the relationship.

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http://hdl.handle.net/10453/41408