A Study on the Effect of PMO Capability and Organization Justice on IT Project Performance

Ki-Hyun Kim, Geun-Wan Park, Seung-June Hwang

Abstract


The objective of this study is to examine the relationship of organizational justice, project performance and internal and external PMO (Project Management Office) capability by conducting survey of IT project participants worked with PMO. This study was the first case which classifies PMO capability into internal and external by ownership of PMO. PLS-SEM analysis, which used for this study shows internal PMO capability connects with distributive justice and procedural justice, and directly related to project performance. By comparison, external PMO capability has relationship only with procedural justice, but never related to project performance. Furthermore, distributive justice and procedural Justice all have correlation with project performance. In general, capability of external professional consulting firms is utilized for the fairness and objectivity in spite of sufficient internal project management capability. However, the internal PMO capability has greater influence on procedural justice than external’s (internal PMO capability > external PMO capability). Also, distributive justice and project performance have direct correlation only with the internal PMO capability. This paper will be an indicator of finding human capabilities which are necessary for internal and external PMO performance, and has great significance of laying a groundwork of project management strategy by PMO.

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