Effects of standardization-based coordination mechanisms in project performance

Abstract: Among the coordination mechanisms present in an organization defined by Mintzberg, there are the mechanisms based on standardization of processes, employee skills and outputs. This study intends to investigate, through an exploratory and quantitative approach, the relationship between standardization-based coordination mechanisms, considered essential for project objectives accomplishment, and project performance. In addition, it is proposed to investigate whether project size, project manager power, technical system complexity and external environment stability affect the relationship between standardization mechanisms and project performance. In order to test the proposed model, the structural equation modeling technique was used in an empirical research with 216 professionals that have already worked on projects. The results showed that work processes standardization has a significant effect on the performance of projects and that their effectiveness is greater in smaller projects, when the project manager has power of action, when the external environment is stable and the technical system is not complex. This study also showed evidence that the proper use of standardization-based coordination mechanisms may have its effects enhanced when contingency factors are considered.