Impact of project management practices on organisational performance of small and medium size enterprises: a case of Letan Limited

Abstract

The focus of this study was on the impact of project management practices on organisational performance in small and medium size enterprises (SMEs). Letan Limited was selected as an SME that has adopted project management practices, for this study. The measurement of organisational performance was measured using project performance; three criteria for measuring project performance were identified for their widespread application in project management definition and general understanding amongst practitioners. These included: time, cost and quality criteria. Questionnaires were used to collect data within the selected organisation (Letan Limited) to assess the level of importance of linking various project management practices in order to realise greater organisational performance.

The questionnaires were also used in establishing which project management practices significantly influence organisational performance and measured time, cost and quality performances of projects of the organization leading to greater organisational performance. Analysis of the impact of project management practices on organisational performance was done using descriptive and inferential data analysis using SPSS 19 and Microsoft Excel 2007 software to determine the relationship between the significant project management practices and organisational performance. The key findings from the research were that it was important to link the various project management practices to realise successful completion of projects leading to better organisational performance.

It was also discovered that all project management practices were found to be significant to realise better organisational performance however project cost management followed by project scope management were the most significant. Time performance lagged behind where as the cost and quality performance trends were generally as expected and very important in realising improved organisational performance. The study showed that engaging in project management practices had a positive impact on organisational performance as benefits accrued improved organisational performance. The study finally provided recommendations for improvement in project management practices and more organisation performance metrics recently developed in other research works like benefit to end users, benefit to national infrastructure should be included for performance measurement. Recommendations were also made on areas for further studies on adoption of project management practices in all sectors in addition to the small and medium size enterprises (SMEs).