Crises and capabilities in project-based organizations: conceptual model and empirical evidence

Abstract

PurposeThe purpose of this paper is to focus on the identification of different types of crises, their impact on project-based organizations' (PBOs) performance and exploring PBOs' capabilities to influence the effects of those crises.Design/methodology/approachThis study presents results from a large-scale survey (n = 283) comprising PBOs in the information technology, telecom and construction industries. The data analysis relies on structural equation modeling.FindingsThe study indicates that internal (as well as external) crises are negatively (as well as positively) associated with performance, which demonstrates the different effects that different kinds of crises have on performance. Furthermore, project-based organizational capabilities moderate the crisis–performance relation. In particular, the study demonstrates the contrasting effects that capabilities have on the management of crises indicating that some capabilities might worsen the effects of crises.Originality/valueThis paper contributes to dynamic capability and project management literature by identifying different types of crises that could impact short-and long-term performance and explore a set of capabilities required by PBOs to manage crises.