Evaluating project management office adoption for value-oriented governance in large-scale construction projects

Area of Science:

• Construction Management
• Organizational Studies
• Project Management

Background:

• Project Management Offices (PMOs) are vital for project coordination and value realization, but their adoption in construction lacks empirical depth.
• Existing research focuses on PMO typologies and maturity, with limited quantitative data on influencing factors and governance outcomes.
• Understanding how internal capabilities and external factors drive PMO adoption and value in construction is crucial.

Purpose of the Study:

• To develop and validate a multi-factor structural model for evaluating PMO adoption (PMOA) in large-scale construction.
• To quantitatively assess the influence of internal and external factors on PMOA and value-oriented governance.
• To provide empirical evidence on PMO adoption in the Middle Eastern construction context.

Main Methods:

• A multi-factor structural model was developed and validated using data from 60 professionals on the Haramain Expansion Project in Saudi Arabia.
• Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to analyze relationships among Knowledge and Awareness (KAF), Implementation Excellence (IEF), Change Management (CMF), and External and Risk Management (ERMF).
• The model's reliability and predictive accuracy were assessed to explain variance in PMOA.

Main Results:

• The validated model demonstrated strong reliability and predictive accuracy, explaining 97.6% of the variance in PMOA (R² = 0.976).
• Implementation Excellence (β = 0.366) and Change Management (β = 0.349) were the most significant determinants of PMOA.
• External and Risk Management (ERMF) (β = 0.271) and Knowledge and Awareness (KAF) (β = 0.250) also positively influenced PMOA.

Conclusions:

• This study provides the first empirical validation of a multi-dimensional PMO adoption framework in the Middle Eastern construction sector.
• Effective PMO adoption is significantly driven by implementation excellence and robust change management strategies.
• Integrating capabilities, risk preparedness, and governance mechanisms through PMO adoption fosters sustained organizational value and resilience in complex infrastructure projects.