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International Journal of Management Science and

Engineering Management

ISSN: 1750-9653 (Print) 1750-9661 (Online) Journal homepage: https://www.tandfonline.com/loi/tmse20

Exploring the impact of knowledge management


(KM) best practices for project management
maturity models on the project management
capability of organizations

Farrukh Jaleel, Tugrul Daim & Abdulhakim Giadedi

To cite this article: Farrukh Jaleel, Tugrul Daim & Abdulhakim Giadedi (2019) Exploring the impact
of knowledge management (KM) best practices for project management maturity models on the
project management capability of organizations, International Journal of Management Science and
Engineering Management, 14:1, 47-52, DOI: 10.1080/17509653.2018.1483780

To link to this article: https://doi.org/10.1080/17509653.2018.1483780

Published online: 16 Jul 2018.

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INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND ENGINEERING MANAGEMENT
2019, VOL. 14, NO. 1, 47–52
https://doi.org/10.1080/17509653.2018.1483780

Exploring the impact of knowledge management (KM) best practices for project
management maturity models on the project management capability of
organizations
Farrukh Jaleela, Tugrul Daimb and Abdulhakim Giadedib
a
Department of Engineering and Technology Management, Center For Advanced Studies In Engineering (CASE), Islamabad, Pakistan; bPortland
State University, Portland, OR, USA

ABSTRACT ARTICLE HISTORY


This study aims to identify and validate best practices to capture, organize, and share knowledge-of- Received 23 November 2017
projects management; and to suggest how to enhance the capabilities of project management Accepted 28 May 2018
maturity models by making them capable of assessing the extent to which an organization is KEYWORDS
following practices for managing knowledge-of-projects. To achieve these objectives, a mixed Competitive advantage;
methods multiphase approach has been adopted. In the first phase, best practices for managing knowledge management of
the knowledge of projects are qualitatively identified. The second phase of the study involves an projects; knowledge
analysis and assessment of the impact of the identified best practices on the project management management best practices;
capability of organizations. Finally, we recommend a set of best practices that have been found to project management
be effective in managing the knowledge-of-projects, and that could be incorporated in any project maturity models
management maturity model. Validation of the identified best practices through data collected
internationally makes the results globally applicable.

Abbreviations KM: Knowledge Management; IT: Information Technology; PMC: Project


Management Capability

1 Introduction professionalization of project managers. Most organizations


struggle to achieve strong business value from their IT
In the current global economy, knowledge is considered to
investments (Bowen, Cheung, & Rohde, 2007; Horner
be one of the most important assets and it must be con-
Reich, Gemino, & Sauer, 2011). The question now arises,
trolled correctly to achieve improved gains. From the
if the organizations invest and give more attention to IT
knowledge-based view of the firm, knowledge that is diffi-
projects, then why do IT projects fail to show expected
cult to recognize, attain and duplicate is the key element to
results? Nevertheless, answering this question may be rele-
achieve optimum performance and success (Grant, 2002;
vant to previous research by the Standish Group (Group,
Serenko, Bontis, & Hull, 2015). Knowledge management
2001): ‘the problem lies in the people and the processes
(KM) can be associated with a businesses success and with
(intangible resources such as KM) and not in the technol-
its capacity to adapt to the constantly changing environ-
ogy (tangible)’.
ment. Owing to knowledge, companies can innovate, create
To create a competitive advantage, organizations need to
organizational routines, grow, be sustainable and obtain
implement a strategy that can rely on their intangible
competitive advantages (Arturo Calvo, Antonio Navarro,
resources such as KM. This need creates the rationale for
Manuel Rey, & Rafael Perian~ Ez, 2016; Chen & Huang,
this study. The study pursues two broad objectives. The first
2009). Projects can be important vehicles for organizational
is the identification of a set of knowledge management best
change and many challenging projects have an underlying
practices (BPs) related to project management. The second
dependence on information technology (IT) (Horner Reich,
is the assessment of the impact of the identified best prac-
Gemino, & Sauer, 2013; Markus & Benjamin, 1996;
tices on organizational project management capability. The
Peppard, Ward, & Daniel, 2007). Knowledge management
best practices identification have been performed in
plays a significant role in enhancing information technology
Pakistan, but the impact assessment is performed in other
(IT) projects that are used to improve an organization’s
countries as well.
performance and to sustain a competitive advantage in the
market. Although performance related to these IT-enabled
change projects has traditionally been defined by the 2 Literature review
achievement of scope, budget and schedule targets, practi-
Learning is a process through which science can be
tioners and researchers have suggested widening this defini-
created through the change in experience (Saadat &
tion to also include the realization of business value
Saadat, 2016). The notion of learning has been intro-
(Baratta, 2009; Horner Reich et al., 2013). However, accord-
duced in organizational learning literature as behavior
ing to recent data (PWC, 2008), IT’s contribution to pro-
change by contrasting behaviors at different points in
ductivity gains has declined since 2000 despite increasing
time (Schulz, 2001). Learning is framed as more effective
investments in information technology and in the

CONTACT Tugrul Daim ji2td@pdx.edu Portland State University, Portland, OR, USA
© 2018 International Society of Management Science and Engineering Management
48 F. JALEEL ET AL.

behavior at a later time. The knowledge management 1)Process knowledge, which is an awareness of project
literature is more concerned with the identification, col- structure, methodology, tasks, and time frames; 2)Domain
lection and diffusion of the organization’s knowledge. It knowledge, known as an industry knowledge that includes
is less concerned with change over time. Therefore, firm, current situation, problem/opportunity, and technical
knowledge management (KM) can be gathered as a tool solutions; 3) Institutional knowledge that represents a his-
to identify and leverage the collective knowledge in an torical knowledge including power structure, and values of
organization (Barao et al, 2017). This is one of the the organization, which is transferred by means of descrip-
reasons for knowledge management literature’s high tions or anecdotes by employees of the organization; 4)
dependence on Polanyi’s explicit/tactical distinctions Cultural knowledge, which represents managing team
that were introduced in 1962. Thought has been put members from different cultures and background (Horner
into the difference between knowledge held individually Reich, 2007)
and that held by groups, teams and organizations This paper utilizes the classification of the above-men-
(Spender, 1993). Other researchers (Blackler, 1995) also tioned types of knowledge in terms of IT management in
devised similar typologies. With such typologies to hand, the first phase of data collection in order to reduce elusive-
KM researches can consider different challenges of, for ness and make it easier for the interviewees to understand
example, collection and distribution of tacit knowledge what is being asked of them.
versus collection and distribution of explicit knowledge. Prior studies have explored establishing project manage-
Almost all KM presumes that there is some knowledge ment frameworks for different situations (Mizzel and
present and it focuses on realizing the monetary potential Malone, 2007; Shenhar et al., 2005). Due to the significance
even if it is not easy to find (Spender, 2008). Generally, the of the success of projects for organizations, many standar-
knowledge management agenda deals with the practicalities dization organizations have developed frameworks called
of three issues: 1) identification of an organization’s knowl- project management maturity models (PMMMs). These
edge assets; 2) collection and storage of knowledge assets; 3) models can be used to measure and evaluate the extent to
delivering the results to people who can turn it into value which an organization is adhering to many project manage-
(Spender, 2008; Teece, 2003). ment processes. This can also be termed as ‘project manage-
Intangible assets are long term and can help companies ment maturity’. PMMMs contribute significantly to the
achieve a competitive advantage in the market. To maintain success of any project (Berssaneti & Carvalho, 2014; Joslin
this, every company must construct an effective strategy. & Müller, 2015). Even though these maturity models are
The IT industry is considered one of the largest recipients of quite reliable in assessing the maturity of an organization,
knowledge reuse. The industry depends on knowledge man- they lay little emphasis on the capabilities of evaluating the
agement to a great extent, as the employees who are extent to which organizations are using these practices for
involved in various developmental and implementation managing their knowledg-of-projects. Several studies found
phases of these IT projects have high turnover and tend to that knowledge management and project success are closely
leave the company before project completion (PSEB, 2005). related (Gemino, Reich, & Sauer, 2015; Todorović, Petrović,
It is important to mention the two approaches of managing Mihić, Obradović, & Bushuyev, 2014). Most of the existing
IT projects and what role each of these plays in enhancing project management maturity models pay less attention to
them. One of them is the traditional project management measuring the project management maturity of any organi-
method, which is well established, and has been developed zation (Joslin & Müller, 2015). These models can be made
over a long period of time (Spalek, S. (2016). The traditional more useful if they could also evaluate the degree to which
project management methods are focused on work break- these organizations are capturing, organizing, and sharing
down structures – WBS (Zhang, Wang, & Zhan, 2013), their knowledge-of-projects.
Gantt charts (Eppinger, 2001) and detailed budgeting, This paper builds upon an earlier study (Jaleel & Khan,
including the earned value technique – EVT (Goh & Hall, 2013) which looked at 17 knowledge management best
2013). Moreover, the triple constraint concept (time, practices. However, in this study the focus is on the most
money, scope) prevails in managerial projects’ practice important items and the analysis of the impact these prac-
(Basu, 2014). The traditional project management (TPM) tices might have on the project management capability of
is widely recognized and applied in companies’ managerial organizations in Pakistan and in other countries through
practice in several industries apart from the IT industry. multiple hypotheses.
The second approach, which is a more modern approach to
project management, can be traced back to the year 2001
when Agile Manifesto was proposed (Erickson, Lyytinen, & 3 Methodology
Siau, 2005) (Spalek (2016). The basic idea came from the
software development sector and some other industries are The study has been conducted in two phases, utilizing a
now trying to adopt it (Conforto, Salum, Amaral, Da Silva, mixed-methods methodology. The first is a qualitative and
& De Almeida, 2014). Agile project management (APM) the second is a quantitative phase. During the first phase,
allows businesses to not only react quickly to rapidly chan- detailed qualitative open-ended interviews with IT project
ging client needs but also to respond to changes coming managers in Pakistan were conducted to elicit the best
from the turbulent business environment. However, there is practices for managing project knowledge. With results
still some confusion regarding if and to what extent APM is from the first phase, a web-based questionnaire was created
appreciated by the companies in their managerial practice, in the second phase. This questionnaire was utilized to
with a special focus on non-IT sector firms (Spalek (2016). collect and analyze data from the UAE, Canada, the U.S.
In 2007, Horner Reich in her work introduced four types of and Pakistan. The two phases are described in (Table 1) and
knowledge in terms of IT project management. These were: discussed in further detail in subsequent sections.
INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND ENGINEERING MANAGEMENT 49

Table 1. Steps in research methodology. the eight BPs identified as the outcome of the first phase
First Phase – Qualitative data analysis were used to develop a web-based questionnaire containing
Step1 To develop and administer the interview protocols with 18 senior IT
project managers who work in different IT organizations in
five demographic information questions and three questions
Pakistan to elicit their opinions about the best practices for for each BP – totaling 29 questions. The demographic
managing knowledge of IT projects. questions asked the participants about their educational
Step2 To perform a qualitative data analysis of the interviews to
understand the best practices of knowledge management as laid
qualifications, professional experience (in years), designa-
out by these experts. tions, industry, size of organization (number of employees),
Second Phase – Quantitative data analysis and country.
Step1 To develop a questionnaire using the best practices identified in the A total of 550 people were contacted and 190 (20%) valid
first phase based on the information obtained from the IT
industry experts. Also to use these results to generate a survey.
responses were received. The sample size requirements were
Step2 To administer the web-based survey to project managers working met (Miles & Shevlin, 2001; Brace, Kemp, & Snelgar, 2003).
in different IT industries in Pakistan, USA, Canada, and the Middle Sixty-seven per cent (73) were from Pakistan while 33% (36)
East.
Step3 Reliability and capability of the research findings to be reproduced
were from UAE, USA and Canada. However, the group of
in a different environment or situation. participants form a good combination with 19% of them
Step4 Results of the quantitative analysis and details of multiple coming from small sized organizations (less than 100
regression analysis performed on the collected data.
Step5 To perform a quantitative data analysis of the results to verify the
employees), 24% from medium sized organizations (101 to
impact of the best practices that were identified regarding 300 employees), and 57% from large (greater than 300
project management capabilities in Pakistan and other countries. employees) sized organizations based in different countries
and from two industries (IT software development 59% and
project management consultancy 41%).
Face-to-face interviews were conducted in Pakistan to The first phase of this study identified the eight most
elicit and analyze the perceptions of IT project managers important best practices for managing knowledge-of-pro-
in a developing country. It was not possible to conduct face- jects as shown in Table 2. These best practices are used as
to-face interviews in other countries due to limited predictors (independent variables) while organizational cap-
resources and accessibility. However, the results have been abilities to determine scope, schedule and budget are treated
quantitatively validated in other countries. Based on the as outcome variables or dependent variables. The general
definition obtained from the Horner Reich (2007) explana- term ‘best practices for managing knowledge-of-projects’
tion and based on the classification of knowledge-of-project, was used in the hypotheses.
an open-ended interview protocol was designed, and a Multiple regression analysis was chosen as the statistical
group of senior project managers were approached for test to be performed on the collected data in order to
face-to-face interviews. Jaleel and Khan (2013) provide the analyze how all eight BPs collectively affected project man-
details and more information on the data transcription, the agement capabilities of organizations. Tables 3–11 illustrate
software used and the applied approach. the results of the multiple regression analysis. When the
In the second phase, an intra-country, inter-country, and items of a questionnaire are measuring different constructs,
inter-industry survey was conducted to validate the results subscales exist, and Cronbach alpha values for each of the
that were obtained in the first phase. subscales should be calculated separately. Since this study
Survey and questionnaire methods were used to collect involves eight predictor and three outcome variables, there
the data in this phase in order to measure the variables and are a total of 11 subscales in the questionnaire to measure
test the hypotheses. It was desired that data should be
collected from a range of samples dispersed across several
countries. In the first phase, data were collected, analyzed Table 2. Best practices for managing knowledge of project.
and best practices obtained from IT project managers only, No. Predictor (s) Freq.
but at the time of coding, special attention was given to 1 Availability of business analyst 11
codes being adequately generic so that best practices could 2 Documentation 30
3 Industry knowledge + PMBOK 6
be applied to the other industries as well. For that reason, a 4 MIS web portal 88
web-based questionnaire form was developed. All the ques- 5 Meetings and discussions 21
tions in the questionnaire were closed-ended and manda- 6 Peer communication 7
7 Standardization of documents 35
tory to ensure there were no missing data. The 8 Templates 7
questionnaires were sent to the target participants through
their emails so that they could fill them out whenever they
were comfortable and had adequate time. Each question- Table 3. Regression coefficients – PMC (Pakistan).
naire was accompanied by a covering letter, which asked for
Collinearity
some basic background information of the participant, his/ Coefficients Statistics
her industry and provided a brief description of the purpose Model Std.
of the study. The survey asked less about the demographic 1 B Error T VIF
data of the participants and more about their opinions on (Constant) 8.831 .770 11.469
the application of KM best practices on the scope, cost and Business Analyst 4.007 .551 7.272 1.132
Meetings and Discussions 4.122 .638 6.461 1.109
budget estimation capability of the organizations. It used a PMBOK & Experience 5.681 .751 7.565 1.102
5-point Likert scale to indicate their agreement or disagree- Peer Communication 3.165 .766 4.132 1.111
ment with each item. A rating of 1 indicated that the Templates 4.398 .687 6.402 .659
Standardization of 3.032 .574 5.282 .193
respondent ‘strongly disagree’ with the item and a rating Documents
of 5 indicated that the experts ‘strongly agree’. The center Documentation 4.014 .695 5.776 1.239
point of the rating scale was labelled ‘neutral’. In this step, MIS Web Portal 5.010 .754 6.645 1.020
50 F. JALEEL ET AL.

Table 4. Regression coefficients – schedule (Pakistan). Table 10. Regression coefficients – budget (other countries).
(Constant) 11.850 .798 14.850 (Constant) 8.883 .617 28.984
Business Analyst 4.009 .628 6.384 1.132 Business Analyst 2.060 .583 6.964 1.232
Meetings and Discussions 5.041 .674 7.479 1.109 Meetings and Discussions 3.184 .650 4.898 1.146
PMBOK & Experience 6.023 .624 9.652 1.138 PMBOK and Experience 3.771 .443 8.512 1.141
Peer Communication 3.110 .685 4.540 1.332 Peer Communication 4.166 .545 7.644 1.018
Templates 3.063 .594 5.157 .659 Templates 2.065 .611 3.380 .737
Standardization of Documents 2.021 .791 2.555 .193 Standardization of Documents 2.146 .705 3.044 .596
Documentation 4.042 .686 5.892 .386 Documentation 2.060 .676 3.047 .171
MIS Web Portal 5.106 .841 6.071 1.241 MIS Web-Portal 3.026 .502 6.028 1.207

Table 5. Regression coefficients – scope (Pakistan). Table 11. Summary of hypothesis testing.
(Constant) 10.837 .863 12.557 Hypothesis Test Type Hypothesis Testing
Business Analyst 5.004 .545 9.182 1.132 H1 Regression Analysis/ANOVA Partially supported
Meetings and Discussions 5.850 .632 9.256 1.109 H1a Regression Analysis/ANOVA Supported
PMBOK & Experience 6.113 .636 9.612 1.102 H1b Regression Analysis/ANOVA Supported
Peer Communication 4.257 .552 7.712 1.166 H1c Regression Analysis/ANOVA Partially supported
Templates 4.582 .866 5.290 1.131 H2 Regression Analysis/ANOVA Partially supported
Standardization of Documents 3.374 .691 4.883 1.193 H2a Regression Analysis/ANOVA Supported
Documentation 3.899 .643 6.064 1.239 H2b Regression Analysis/ANOVA Supported
MIS Web Portal 4.635 .748 6.196 1.310 H2c Regression Analysis/ANOVA Partially supported

Table 6. Regression coefficients – budget (for Pakistan). each of the 11 constructs. The Cronbach alpha values for
(Constant) 7.788 .729 10.683 each of the11 constructs were all above 0.7.
Business Analyst 4.160 .629 6.614 1.132
Meetings and Discussions 4.686 .620 7.558 1.109 This phase of the research is based on two major hypoth-
PMBOK & Experience 5.889 .573 10.277 1.102 eses that examine the relationships between adoption of
Peer Communication 4.705 .589 7.988 1.109 knowledge-of-project management best practices and
Templates 4.138 .654 6.327 1.223
Standardization of Documents 4.263 .796 5.356 1.193 improvement of project management capability of organi-
Documentation 3.229 .532 6.070 1.214 zations in Pakistan and in other countries.
MIS Web Portal 5.293 .624 8.482 1.102

Hypotheses testing for pakistan

Table 7. Regression coefficients – PMC (other countries). The following hypotheses were developed for the organiza-
Collinearity tions of Pakistan.
Coefficients Statistics
Model Std. H1: Adoption of the best practices for managing knowl-
1 b Error t VIF edge-of-project will improve ‘project management’ capabil-
(Constant) 10.793 .481 21.814 ity of the IT organizations in Pakistan
Business Analyst 4.116 .454 9.066 1.011
Meetings and Discussions 3.151 .507 6.215 1.124
PMBOK & Experience 5.089 .546 9.320 1.141 H1a: Adoption of the best practices for managing knowl-
Peer Communication 5.924 .534 11.094 1.255 edge-of-project will improve ‘schedule estimation’ capability
Templates 3.108 .477 6.516 1.132
Standardization of 4.132 .550 7.513 1.224
of the IT organizations in Pakistan
Documents
Documentation 4.102 .474 8.654 .171 H1b: Adoption of the best practices for managing knowl-
MIS Web Portal 6.006 .639 9.399 .828
edge-of-project will improve ‘scope determination’ capabil-
ity of the IT organizations in Pakistan
Table 8. Regression coefficients – schedule (other countries).
(Constant) 9.853 .641 15.371 H1c: Adoption of the best practices for managing knowl-
Business Analyst 3.098 .389 7.964 1.136 edge-of-project will improve ‘budget determination’ cap-
Meetings and Discussions 4.169 .434 9.606 1.104 ability of the IT organizations in Pakistan
PMBOK & Experience 5.754 .430 13.381 1.111
Peer Communication 4.060 .536 7.575 1.334
Templates 2.113 .408 5.179 1.366 The regression coefficients (b-values) and VIF (variance
Standardization of Documents 4.173 .471 8.860 .552 inflation factor) statistics for PMC, Schedule, Scope and
Documentation 3.076 .451 6.820 .171
MIS Web Portal 5.016 .534 9.393 .828 PMC for the responses collected from Pakistan are reported
in the following exhibits.

Table 9. Regression coefficients – scope (other countries). Hypotheses testing for other countries
(Constant) 8.849 .742 11.926
Business Analyst 3.111 .512 6.076 1.312 Now consider the hypotheses for countries other than
Meetings and Discussions 6.164 .544 11.331 1.117 Pakistan. These countries include: UAE, USA and Canada.
PMBOK & Experience 4.062 .489 8.307 1.141 The hypotheses are:
Peer Communication 5.097 .510 9.994 1.255
Templates 3.125 .373 8.378 1.316
Standardization of Documents 6.141 .755 8.134 .596 H2: Adoption of the best practices for managing knowl-
Documentation 2.102 .429 4.900 .171 edge-of-project will improve ‘project management’ capabil-
MIS Web-Portal 4.044 .617 6.554 .828
ity of the IT organizations in other countries
INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND ENGINEERING MANAGEMENT 51

H2a: Adoption of the best practices for managing knowl- are more important for any one of the triple constraints
edge-of-project will improve ‘schedule estimation’ capability while some were important for all three, i.e. schedule, scope,
of the IT organizations in other countries budget. Overall, we found little support for hypotheses H1c
and H2c (p ≈ .05). Thus, we accept some of the hypotheses
H2b: Adoption of the best practices for managing knowl- but also suggest more investigations for others.
edge-of-project will improve ‘clear scope determination’ A recent study (Oun, Blackburn, Olson, & Blessner,
capability of the IT organizations in other countries 2016) targeted to determine whether a significant associa-
tion exists between the four KM pillars and the PM knowl-
H2c: Adoption of the best practices for managing knowl- edge areas. This study was able to yield similar results,
edge-of-project will improve ‘budget determination’ cap- which indicated that the increasing levels of PM success
ability of the IT organizations in other countries are directly associated with the increasing use of KM pro-
cesses and activities. Another feature was how every ele-
The regression coefficients (b-values) and VIF statistics ment in the KM pillars had a positive correlation associated
for the responses collected from other countries (USA, with the project management constituents (scope, schedule
Canada, UAE) are also reported in the following exhibits. and budget).
To further our understanding of the impact of adoption
of KM best practices on project management capability
(PMC), PWC was sub-divided into three constituents: 4 Conclusions
scope, schedule and budget determination capabilities
Based on the information gained from the research carried
(also known as triple constraints). This division enabled
out in this paper, eight important best practices for mana-
the inspection of the impact of cumulative KM best prac-
ging knowledge-of-projects have been identified. These
tices on each of the triple constraints. It was found that
practices can contribute in improving project management
some best practices showed a more significant effect on one
capabilities in three dimensions: schedule estimation cap-
or two of the triple constraints, while others showed a
ability, scope determination capability and budget determi-
significant impact on all three. Such breakdown approach
nation capability. However, if organizations desire to
has been found extremely useful to look at the individual
maintain a good standing in the industry and hold compe-
and cumulative differences in the statistical models com-
titive advantage by a high number of successful project
puted for the outcome variables.
implementations, they should not only rely on the tradi-
Hypothesis H1 stated that the identified best practices
tional project management improvement techniques but
will improve the PMC of IT organizations in Pakistan.
also act to manage their knowledge-of-projects. Since
Hypothesis H1 is partially supported because the identified
Project Management Maturity Model aims to integrate,
best practices showed a statistically significant impact on
assess, and improve project management practices, a correct
schedule and scope determination capability (p < .05),
alignment of organizational culture and PMM may lead to
though the statistical significance for budget determination
higher project and business performance. Moreover, orga-
capability is a little susceptible (p ≈ .05).
nizations need to employ an efficient KM strategy towards
Hypothesis H1a, H1b and H1c – the sub-hypotheses of
successful completion of projects. Such a strategy may focus
H1 – state that adoption of the identified best practices will
on processes to capture, organize and share the knowledge.
improve the schedule (H1a), scope (H1b) and budget (H1c)
determination capability of the IT organizations in Pakistan.
The hypotheses H1a and H1b were fully supported because
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