Change in a project-based organization: The mutual shaping of institutional logics and change programs

Abstract

Modern organizational transformations increasingly rely on change programs led by the introduction of new information technology. Managing these information technology-based change programs within project-based organizations presents unique challenges due to the division between ongoing business processes and temporary project activities. This study uses an institutional logics perspective to understand how a project-based organizational context shaped and was shaped by an information technology-based change program. Through a three-year longitudinal case study on the interaction between a project-based organization and its information technology program, our findings reveal that institutional logics prevailing in the project-based organization significantly influenced the program's implementation. In turn, the information technology program acted as a catalyst for change, creating a competitive environment where two primarily segmented logics—a project organizing logic and an asset management logic—competed for dominance. The conflict between these logics led to new beliefs, values, and practices being dominant, marking a shift in balance between the two logics. Our findings contribute to increasing understanding of the dynamic interplay between project-based organizations and information technology-based change programs, shedding light on their mutual evolution over time and offering a deeper understanding of transformative change within project-based organizations.