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ABSTRACT ■ INTRODUCTION ■
n this global environment of intense competition, to realize and sustain
The purpose of this research effort is to develop
a model for improving the performance of global
projects using the underlying relations among
the important enablers and barriers of global
project performance. A number of factors are
identified in the study, using a literature review
I competitive advantage, organizations must place importance on how
they practice project management (PM). Specifically, it is critical, in the
context of global projects and geographically dispersed project teams, to
integrate information technology (IT) tools and manage cultural differences
in dealing with project risk and complexity with a focus on improving effi-
to develop the model. A survey was used to ciency, effectiveness, and innovation.
determine the impact of these factors on global A review of journals and publications provides ample evidence of
project performance. The model suggests differ- research interest in global projects. However, only a few research studies
ent management practices for global projects focus on identifying enablers and barriers of global projects and implement-
versus traditional, co-located projects. Different ing them successfully (Dodson, 1998; Grosse, 2002; Jarvenpaa & Leidner,
from the outcomes of traditional projects, 1999; Lientz & Rea, 2003; Nidiffer & Dolan, 2005; Sarker & Sahay, 2002). None
research results suggest that leadership and of these studies have addressed the interaction of enablers and barriers or
establishing trust is a first step in the initial how well their relationships to one another could be used to improve project
stages of the global project. performance. The purpose of this research effort is to develop a model for
improving the performance of global projects using the underlying relations
among the important enablers and barriers of global projects.
KEYWORDS: global projects; virtual teams; This study begins with the premise that global projects and global virtual
interpretive structural modeling; project teams are inextricably linked with each other. The focus of the study is to
performance factors; enablers and barriers of understand how enablers and barriers of global projects interrelate with one
global projects another. Using these interrelationships, a model is developed to analyze the
roles and responsibilities of the project manager and the team to successful-
ly manage global projects. In this article, as a first step, enablers and barriers
of global projects are identified using the literature review. Second, the
research methodology for collecting data to develop underlying relations
among these factors and their level of impact on project success is presented.
Then the structural linkages between these factors are identified, analyzed,
and discussed. The analysis of these linkages will determine individual and
team roles in project success from the research and practitioner’s perspectives.
Finally, we will present limitations of the study and suggest opportunities for
future research efforts.
Literature Review
For the purposes of this study, a global project is defined as a transnational
project, a temporary endeavor with a project team made up of individuals
from different countries; working in different cultures, business units, and
functions; and possessing specialized knowledge for solving a common
strategic task (Adenfelt & Lagerström, 2006: Marmer, 1998; Schweiger, 1998).
Project Management Journal, Vol. 41, No. 2, 60–72 Likewise, a global virtual team is defined by three dimensions: (1) no com-
© 2010 by the Project Management Institute mon past or future, (2) culturally diverse and geographically dispersed, and
Published online in Wiley InterScience (3) communicating electronically (Jarvenpaa & Leidner, 1999).
(www.interscience.wiley.com) Jarvenpaa and Leidner (1999) define a global virtual team to be a
DOI: 10.1002/pmj.20168 temporary, culturally diverse, geographically dispersed, electronically
from country to country. These differ- team members are comfortable openly of setting up a global information sys-
ences impact the project performance, discussing conflicts, (2) avoiding rigid tem for a large multinational firm, with
and the risk of project failure escalates structures that are not adaptable, and issues being the definition of require-
(Simons, 2006). Likewise, an individual’s (3) using telephone conferences as well ments, the internal politics of the orga-
idea about what constitutes accountabil- as the Internet. nization, and the changing strategic
ity can also vary within different cultures Apart from culture, Damodara direction of the organization.
(Dubé & Paré, 2001). Project managers of (2000) argues—in the context of engi- Yasin et al. (2000), in their study of
global virtual teams must be mindful neering and construction projects— 81 project managers, observed that
of these differences. that organizations need to change their compared to project managers with no
Barczak, McDonough, and project management practices in at international experience, those with
Athanassiou (2006) found that the main least six areas to remain competitive global project management experience
challenges facing a global project leader globally. They are: have more knowledge in international
are associated team members who • Become a cost-effective organization law, international finance, internation-
speak different native languages, come in the global environment. al economics, and international market-
from different cultural backgrounds, • Maintain state-of-the-art information ing. More interestingly, global project
live and work in multiple countries, and systems. managers are more knowledgeable
come from different companies. • Hire team members who can think about integration management, cus-
Yasin, Martin, and Czuchry (2000), globally. tomer satisfaction, and leadership.
citing other studies (Halpin & Huang, • Use global suppliers effectively. According to their study, project man-
1995; Kerzner, 1995), suggest that proj- • Take advantage of local existing facili- agers with global experience consid-
ect managers dealing with internation- ties. ered procurement management to be
al projects should be trained to develop • Achieve global quality. important when managing their proj-
sensitivity to cultural differences and ects. Lee-Kelley (2006) also found that
should be knowledgeable about inter- Most of these project management selection of team members in the glob-
national environmental regulations issues are relevant irrespective of the al team is critical to project success.
and standards. Grosse (2002) and industry to which the global project is Team building is considered essen-
Dodson (1998) conclude that speaking executed as is evident from the study of tial for virtual project teams (Project
the language, knowing the culture, and Adenfelt and Lagerström (2006), who Management Institute [PMI], 2008).
being sensitive to cultural differences observed that organization structure is Nidiffer and Dolan (2005) observed that
could also help communication. considered an important enabler in building virtual teams with a minimum
In their study, Sennara and Hartman global projects to promote a culture of of face time, clearly defining work,
(2002) found that although major cul- collaboration, learning, and trust. measuring cybernetic worker produc-
tural risks on domestic and global proj- Lientz and Rea (2003) have identi- tivity, and managing employee commu-
ects are superficially similar, their fied a number of factors that add com- nications across time zones are major
impact on project effectiveness and plexity to global projects: lack of control management priorities. Based on their
success are different. They list six issues: due to external issues such as local pri- study of virtual teams using WebCT,
organizational culture, networking, orities, diverse cultures, different time Sarker and Sahay (2002) suggested that
project selection, contracts and negoti- zones, volatility associated with local attention to technical and social com-
ation, project leadership, and foreign and foreign exchange currencies, differ- ponents of virtual teams would mini-
agent selection, which need to be con- ing rules and regulations in different mize the friction related to location and
sidered before deciding to go forward geographical locations, political pres- temporal distances.
with a global project. Organizational sures, and greater public visibility of
structure, communication, culture, and these projects. Political risks are often Research Methodology
trust are considered to be four areas for significant depending on political rela- Two research methods were used in this
risk mitigation in virtual organizations tions specifically, if projects are execut- study. The first one, interpretive structur-
by Grabowski and Roberts (1999). ed in developing countries (Khattab, al modeling (ISM), examines the under-
The main issue between cultures Anchir, & Davies, 2007). lying dependency relations among the
seems to be the role of trust. Majchrzak, A research study examining issues factors identified from the literature
Rice, Malhotra, King, and Ba (2000) related to enabling and sharing knowl- review (Table 1). The second method was
defined this issue further, developing edge in transnational projects has iden- designed to establish the importance
three practical outcomes that can tified communication technology as an and level of impact of each of these fac-
improve trust in global project teams: enabler (Adenfelt & Lagerström, 2006). tors on the success of global projects
(1) creating an environment where Lehmann (2004) points out the difficulty in general and type of global project in
Communication Language and associated cultural differences—an Beranek et al. (2005), Diallo and Thuillier (2005), Dodson
obvious obstacle to communication—but its importance (1998), Grosse (2002), Jarvenpaa and Leidner (1999),
is apparent with the increasing use of the World Wide Web. Khazanchi and Zigurs (2005), Lientz and Rea (2003), Lin
and Berg, (2001), Nidiffer and Dolan (2005), Rad and
Anantatmula (2009), Sarker and Sahay (2002)
Cultural Values Religion has an impact on a project in terms of work Dubé and Paré (2001), Grosse (2002), Horii et al. (2005),
ethics, values, holidays, who will work with whom, Jarvenpaa and Leidner (1999), Lientz and Rea (2003),
and the like. Beliefs, an outcome of culture, can Nidiffer and Dolan (2005)
influence work practices. Local, regional, and national
management practices can vary from country to country
and could be different from Western norms such as time
off from work, hierarchical authority, gender issues, and
the like.
Global Business International market, international economics, Lientz and Rea (2003), Yasin et al. (2000)
Environment international finance, and currency—an understanding
of all these global business environmental issues will
facilitate making better project decisions throughout the
project life cycle.
Legal and Country-specific laws, environmental regulations, Halpin and Huang (1995), Kerzner (1995), Lientz and Rea
Political Issues political issues, and acceptable standards can (2003), Yasin et al. (2000)
impact a global project.
Integration Vertical (within the organization) and horizontal Damodara (2000), Erickson and
Management (external to the organization) integration are critical Ranganathan (2006), Lientz and Rea (2003), Nidiffer and
and can become difficult across regions and countries. Dolan (2005), Yasin et al. (2000)
Project A cost-effective organizational structure will be Damodara (2000), Erickson and Ranganathan (2006),
Organizational decentralized and flexible to collaborate and manage Yasin et al. (2000)
Structure global projects successfully to meet customer needs.
Global Procurement management in global projects will have Damodara (2000), Erickson and Ranganathan (2006),
Procurement no geographical boundaries. Therefore, it is a challenge Lee-Kelly (2006), Sennara and Hartman (2002), Yasin et al.
Management to possess the knowledge of the best places to go for (2000)
materials and labor, which can impact global project
success.
Leadership and Treating a global project as a standard project can lead to Anantatmula (2008), Damodara (2000), Dodson (1998),
Establishing problems. Leadership and people skills are more important Erickson and Ranganathan (2006), Grabowski and Roberts
Trust for global projects. They help in establishing trust. (1999), Jarvenpaa and Leidner (1999), Kanawattanachai
Micromanaging is a temptation in global projects and Yoo (2002), Lientz and Rea (2003), Majchrzak et al.
because of a lack of understanding of the capabilities of (2000), Lientz and Rea (2003), Majchrzak et al. (2000),
the project team members including contractors, and Nidiffer and Dolan (2005), Sennara and Hartman (2002),
the absence of trust. Yasin et al. (2000)
Planning, Planning, execution, and control—which include risk Al-Tabtabai and Alex (2000), Erickson and Ranganathan
Execution, and management—are impacted by cultural differences, (2006), Nidiffer and Dolan (2005), Sennara and Hartman
Control varying working conditions, and local issues. (2002), Yasin et al. (2000)
Stakeholder and Stakeholder and customer satisfaction—cultural, Nidiffer and Dolan (2005), Yasin et al. (2000)
Customer financial, and communication complications can occur
Satisfaction in terms of determining what the customer considers to
be a successful project.
Stakeholders need to be part of the global project
process and should be made to feel that they are
in a win-win situation with respect to the
project outcomes.
Fast and Reliable Fast and reliable information systems are essential Adenfelt and Lagerström (2006), Dubé and Paré (2001),
Information for success in global projects. Lehmann (2004), Lientz and Rea (2003), Sennara and
Systems Communication and control systems that are standard, Hartman (2002), Yasin et al. (2000)
compatible, and reliable are essential for knowledge
sharing and those that can be used in participating
countries are essential.
Time-Zone Time zone differences can create communication Lientz and Rea (2003), Nidiffer and Dolan (2005),
Differences (meetings) problems, specifically in synchronous Yasin et al. (2000);
mode. However, time zone differences can also allow
work to proceed 24 hours a day.
Table 1: Factors of influence on performance of global projects.
Integration management
Time zone differences
top six noted in the previous paragraph.
Communication
Cultural values
Planning, execution,
and control
Cultural values
Management Biotechnology
IT Systems and Medical
Project Type S Size Mean Size Mean Size Mean Probability F
Managing cultural differences 28 4.32 12 4.16 9 2.77 0.0180
Managing language differences 28 4.25 12 4.25 9 2.77 0.0056
Understanding global business environment 28 4.18 12 4.33 9 2.44 0.0016
Legal issues 28 4.14 12 3.83 9 2.66 0.0208
Global procurement management 28 4.28 12 4.50 9 2.66 0.0004
Leadership of effective collaboration and trust 28 4.50 12 4.41 9 2.44 0.0007
Fast and reliable information systems 28 4.18 12 3.91 9 2.44 0.0028
Table 4: Factors important for project success.
business environment and its influence and fast, reliable information systems. ment—together will influence procure-
on existing legal and political issues for As defined earlier, time zone differences ment practices in global projects. For
the applicable geographical regions help the project manager to engage the instance, time zone differences and infor-
where the project will be managed. project team round the clock. On mation systems will have a bearing on the
Likewise, cultural values, which the downside, the project team may not project manager’s decision to identify
include religious-based differences in always have an opportunity to discuss places for obtaining human resources and
values, differences in local and national issues face-to-face or by synchronous materials. Global project managers must
management practices, work ethics, video-conference meetings because of exercise prudence in exploring and iden-
and beliefs, will have an impact on geographical dispersion. For the same tifying all the possible sources for pro-
work practices and productivity, and reason, fast and reliable information curement of materials, services, and
shape the leadership and team man- systems play a major role in deciding people because there are no geographical
agement of global projects. It is critical leadership and team management boundaries or other constraints. Similarly,
for the project manager to be cognizant styles. On the other side, cultural values, organizational structure, while adjusted
of cultural values in formulating leader- which lead to the adoption of suitable to project leadership and management
ship and team management strategies. project leadership and team manage- practices, is also influenced by informa-
With all these factors in consideration, ment, will have a significant influence tion systems and time zone differences.
a project manager will have to adapt on how time zone differences are man- Integration management is about
their leadership style and ways in aged and what kind of information integration within the organization as
which the team is managed. As is true system is required. Global project man- well as outside the organization. The
with any project, among other things, agers must analyze and understand involvement of various agencies in dif-
stakeholder and customer satisfaction these project-specific interdependen- ferent parts of the world makes inte-
is the ultimate goal of global projects. cies in formulating their approach. gration extremely important. The
Project leadership and team man- These factors—information systems, involvement of these agencies is a crit-
agement influence and, in turn, are issues related to time-zone differences, ical component of global projects and
influenced by time zone differences and project leadership and manage- represents a significant difference
between global projects and traditional The difference between the man- establish current, reliable, and fast
projects. Involvement of various agen- agement practices the model suggests information systems because of the
cies external to the parent organization for global projects (Figures 2 and 3) and geographical dispersion of project team
is decided by global procurement man- the management practices of tradition- members and stakeholders. Integration
agement practices, and their effective- al, co-located projects is an important is a key success factor, and the primary
ness is a determinant of project com- outcome of this study. Defining roles stakeholders will have to play impor-
munications and the structure. and responsibilities, employing consis- tant roles in managing this aspect of the
Several research studies have tent processes, and communicating global project. Finally, project man-
shown that stakeholder and customer expectations are the activities that are agers who are managing global projects
satisfaction are the ultimate goals of addressed first in a traditional project must adopt their leadership and team
any project, and our research results (Anantatmula, 2008). Likewise, early management practices and processes
have confirmed this. However, for this studies on project success identified based on prevailing cultural values,
to happen in global projects, stakehold- success factors such as clearly defined legal and political issues, time-zone dif-
ers and customers should be made to goals, adequate communication with ferences, and information systems.
feel that they are in a win-win situation all of the stakeholders including the Only after these aspects are addressed
and should be included in project com- project team, and the ability to handle in detail can we move on to the tradi-
munication whenever feasible. unexpected problems (Pinto & Prescott, tional project management life-cycle
1987; Pinto, Slevin, & Dennis, 1987). phases of planning, executing, and
Discussion However, in global projects, which are monitoring and control.
The significance of ISM and its results routinely managed with virtual teams
from the global project management and diverse cultures, establishment
Limitations of the Study
A limitation to creating a structure is
point of view is the emergence of this of leadership and the establishment of
that it is not easy to generalize these
logical flow of causal influences. These trust that is sensitive to the culture in
results across organizations. Therefore,
causal influences are logically consis- context are initial steps and assume
caution should be exercised in using
tent and provide a combined view of importance during the early phases of
these findings. As stated earlier, these
the participants who participated in the the project. Establishing leadership and
directional results need to be validated,
study. The contextual relevance of this information systems in the initial phas-
and this study is expected to serve as a
approach has important consequences es of the project life cycle exert signifi-
foundation for such a study. To increase
for successful strategies and manage- cant influence on the project success in
the validity of these results and to
ment practices in global projects. a global environment.
develop a more robust shared mental
In this research method, the result-
model, we plan to apply the model in
ant model permits us to understand how Implications
global projects in various industries for
each of these elements can behave as an In order to manage a global project suc-
its validation. These actions will facili-
enabler and an inhibitor to global proj- cessfully, organizations need to under-
tate the development of a more robust
ect performance. In the models shown stand the global business environment
structural model. Further research is
in Figures 2 and 3, the weakness of an and different relevant cultures. Further,
planned to validate the model to estab-
element makes it an inhibitor, while the the impact and importance of factors
lish the importance and effectiveness of
strength of that very same element varies based on the type of project and
each factor in the model, and establish
makes it an enabler. For instance, the the industry in which it is executed. The
their dependency relations using statis-
presence of fast and reliable information sponsoring organization and the proj-
tical methods.
leads to effective and efficient commu- ect manager must develop an under-
Our research data represented proj-
nication among the project stakeholders standing of the relevant legal and polit-
ects of a few dominant industries. There
and creates a system for effective leader- ical issues. The project-sponsoring
is scope to expand this study to include
ship and team management, whereas organization and all the key stakehold-
a significant number of projects that
the absence of such an information sys- ers must recognize similarities and dif-
represent a wider range of industries.
tem will impede project team function- ferences in culture and values. If
ing because of its geographical disper- required, the entire project team can be Conclusion
sion. This research approach demon- considered for training on cultural val- Our research results suggest that
strates the dual role of all the elements in ues. However, developing and nurtur- importance and impact of some of the
terms of whether they are enablers or ing a culture of openness and trust is factors that contribute to performance
barriers in global projects. Therefore, it usually a gradual process and will have of global projects are industry-specific.
may not be helpful to classify these ele- a significant impact on communica- Depending on the type of industry
ments as enablers or barriers. tions. It is critical that the global project in which the project is executed, the
and project success: A case study. Transactions on Engineering priority-setting in urban systems man-
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Vittal Anantatmula, DSc, PMP, CCE, is an associate
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Building teams across borders. Global http://www.risksig.com/members/ ment performance, and leadership. He has had his
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Software, pp. 63–72. pp. 36–40. Washington University teaching and directing a
Orr, R. J., & Scott, W. R. (2008). graduate degree program. He has worked in the
Snow, C. C., Snell, S. A., & Davison, S.
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Pinto, J. K., & Prescott, J. E. (1987). Tavcar, J., Žavbi, R., Verlinden, J., & and MS and DSc degrees in engineering manage-
Variations in critical success factors Duhovnik, J. (2005). Skills for effective ment from the George Washington University. He
over stages in the project life cycle. communication and work in global is a Certified Project Management Professional
Journal of Management, 14(1), 5–18. product development teams. Journal of and Certified Cost Engineer.
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Pinto, J. K., Slevin, D. P., & Dennis, P.
(1987). Critical factors in successful Waller, R. J. (1975). Application of Michael Thomas, PhD, MPM, BTP, PMP, is an
project implementation. IEEE interpretive structural modeling to assistant professor of project management at
The elements of the system are identified and listed. In this study, it is achieved using literature review. However, brain-
storming or other research methods can also be used.
2. Contextual Relationship:
A contextual relationship between elements is established, depending upon the objective of the modeling exercise.
This matrix represents the respondent’s perception of an element-to-element directed relationship. Four symbols are used to
represent the type of relationship that can exist between two elements of the system under consideration. These are:
a. for the relation from element Ei to Ej, but not in the reverse direction;
b. for the relation from Ei to Ej, but not in the reverse direction;
c. for an interrelation between Ei and Ej (both directions); and
d. to represent that Ei and Ej are unrelated.
A Reachability Matrix is then prepared that converts the symbolic SSIM Matrix into a binary matrix. The following conver-
sion rules apply:
If the relation Ei to Ej 1 in SSIM, then element Eij 1 and Eji 0 in RM
If the relation Ei to Ej 2 in SSIM, then element Eij 0 and Eji 1 in RM
If the relation Ei to Ej 3 in SSIM, then element Eij 1 and Eji 1 in RM
If the relation Ei to Ej 4 in SSIM, then element Eij 0 and Eji 0 in RM
The initial RM is then modified to show all direct and indirect reachabilities—that is, if Eij 1 and Ejk 1, then Eik 1.
5. Level Partitioning:
Level partitioning is done in order to classify the elements into different levels of the ISM structure. For this purpose, two
sets are associated with each element Ei of the system—a Reachability Set (Ri; that is, a set of all elements that can be
reached from the element Ei, and an Antecedent Set (Ai; that is, a set of all elements that element Ei can be reached by).
In the first iteration, all elements, for which Ri Ri∩Ai, are Level I Elements. In successive iterations, the elements identi-
fied as level elements in the previous iterations are deleted, and new elements are selected for successive levels using the
same rule. Accordingly, all the elements of the system are grouped into different levels.
6. Canonical Matrix:
Grouping together elements in the same level develops this matrix. The resultant matrix has most of its upper triangular
elements as 0, and lower triangular elements as 1. This matrix is then used to prepare a digraph.
7. Digraph:
Digraph is a term derived from directional graph, and, as the name suggests, is a graphical representation of the elements,
their directed relationships, and hierarchical levels. The initial digraph is prepared on the basis of the canonical matrix.
This is then pruned by removing all transitivities, to form a final digraph.
The ISM is generated by replacing all element numbers with the actual element description. The ISM, therefore, gives a
very clear picture of the system of elements and their flow of relationships.