How does strategic uncertainty and project sponsorship relate to project performance? A study of Australian project managers

The purpose of this paper is to develop and test a model on the contingent effects of project sponsorship on project performance.

The propositions are tested with survey data from project managers and senior managers with project management oversight in Australian companies.

The results support the hypotheses that the level of perceived management priority has both a direct effect on project sponsorship and project outcomes, and a moderating effect on the effect of project sponsorship on project outcomes.

This is an exploratory study into the relationship between project sponsorship and project performance. The model proposed is validated from a sample of Australian project managers. Further studies are needed to validate/modify the model in other culture/contexts.

The findings suggest that organisations could improve their overall project performance by demonstrating management attention to and appointing sponsors to projects with high strategic uncertainties.

Management support in the form of project sponsorship has consistently been cited as critical to achieving project objectives. Yet, there is mainly anecdotal evidence on the effect of project sponsorship and little validated knowledge exists on how project sponsors and senior management effect project performance. This study is the first to conceptualize and provide empirical support for the contingent effect of project sponsorship on project performance.