In this chapter the hypothesis tests of all five propositions relating to the project organization are discussed.
First, the assumptions concerning the impact on the project success are detailed, which are the following three:
• The more clearly the procurement strategy is defined, the higher is the project success (proposition 2).
• The more competent the procurement professionals are, the higher is the project success (proposition 3).
• The better the project is managed, the higher is the project success (proposition 6).
In the following table the results of the correlation analysis are displayed.
Correlations
Procurement strategy Procurement competence Project management
••• ã ,., sipufacance level (lãsided) : 5' signifJCaDCC level (!ãsided)
; IK sagniticance level (!-sided)
Project success
.30 ...
.3!•••
.45•••
Table 8.5 Correlation analysis to proposition 2, 3 and 6•7
All correlation coefficients are highly significant. As assumed the procurement strategy has a positive impact on the project success. A strategic focus enables a smooth project work for the
47 Results on the dimension level are displayed in the appendix B.
project team, with clear directions right from the project start. The project team does not loose any time and effort for developing various approaches. The team members are clear, what to do and which deliverables they need to show at the project end. Due to a clear purchasing and IT strategy the project team has enough arguments to convince the procurement professionals about the urgency and need to implement the B2B E-marketplace. The team members are supported by the overall strategy of the firm, which enables them to approve the advantages and optimization potential of the new procurement environment so that the acceptance and usage is guaranteed.
Looking at the procurement competence, its positive impact on the project success can be confirmed. With the appropriate purchasing competence the team is able to clearly understand the purpose of the project. The team members are highly qualified to successfully solve the given objectives. For keeping the time and budget limitations of the project especially the IT competence is advantageous, since the project team is qualified in diverse management tools for controlling the project constraints. Both the purchasing and IT competence are supportive for a smooth implementation of the new E-tools. The team has the right qualification to motivate the procurement personnel to accept the B2B E-marketplace. The team members are able to explain the new system, so that the procurement professionals have no or few resistance due to misunderstanding or any complications.
Besides the procurement strategy and the availability of the appropriate know-how the project management of the B2B E-marketplace introduction project is highly correlated with the project success. The team qualifications are key, not only technical know-how, but change management competence and project management experience are necessary for a successful project. The appropriate team competence enables a project end on time and within the budget by delivering the requested objectives. Top management support helps also to keep the project efficiency and effectiveness. Any delays can be compensated in an early stadium, so that they do not cause major conflicts. The top management support seems to be especially helpful concerning the B2B E-marketplace acceptance. The procurement professionals accept that they do not have any alternative than to adopt the new system. All project success factors are positively correlated with the project planning and steering component. A straight forward project controlling enables to anticipate any problem very early, so that real problems concerning time, cost or content can be prevented.
158 8 Empirical analysis of the theoretical model The strong correlations between procurement strategy, project management and the project success can also be supported by the significant results of the regression analysis. However, the regression coefficient for the procurement competence was not significant, which might suggest that the procurement competence is an operative measure, which needs to be utilized by the project team in the right way before a success occurs.
The relating regression coefficients, the significance levels (1-sided) and the explained variance are shown in the following table.
Regression analysis Project success Std Sig.
Beta level Procurement strategy .22 .008 Procurement competence .10 .275
Project management .37 .000
R2 .262
F 13.581 .000
Bold values are si&nificant.
Table 8.6 Regression analysis to proposition 2, 3 and 64
For further analyzing the different dependencies between procurement strategy, procurement competence, project management and the project success the impact of procurement strategy and procurement competence on project management is tested in a next step:
• The more clearly the procurement strategy is defined, the better the project can be managed (proposition 4).
• The higher the available procurement competence is, the better the project can be managed (proposition 5).
In table 8.7 the results of the correlation analysis between procurement strategy, procurement competence and the project management are displayed. The procurement strategy and the project management are only correlated on the 10% significance level compared to the highly significant correlation of the procurement competence and the project management.
48 Results on the dimension level are displayed in appendix B.
Correlations
Procurement strategy Procurement competence
''"' ~gru/"JCaDa: lo,.l Oãsidedl
•• : S~ sipificaace lcw:J (1-sidufl : IK sign&fic:mce Jewl (1-sided)
Project management
.14*
.43***
Table 8. 7 Correlation analysis to proposition 4 and 549
The main driver for a successful project management seems to be the appropriate procurement competence. The highly significant correlation coefficient between procurement competence and project management seems to support the above assumption, that the procurement competence has to be utilized by the project management before any success can be measured. Competence is necessary in all project aspects and on all levels including the project leader, the team members and the top management. For the project team especially the purchasing knowledge is helpful. The team members have to decide, which products to select as pilots, which concept to choose and how to redesign the new processes. Threats and potential risks have to be identified beforehand. Action plans to compensate and reduce these dangers have to be developed. Therefore, broad purchasing know-how is necessary. The project team needs to be appropriately qualified to understand the situation in the supplier market, in the competitive environment but also within the own organization. For being able to use project management tools to apply a transparent project controlling the appropriate knowledge is mandatory. On the one hand technical qualifications in purchasing and IT are needed, on the other hand project experience is also necessary. The project planning and steering process needs to be consequently adapted to the given circumstances.
The dominant impact of the procurement competence on project management compared to the strategy is also supported by the results of the regression analysis, which are shown in the following table. However, the regression coefficient of the procurement strategy is not significant. The procurement strategy influences the underlying message and direction of the project, but not really the active process of executing the project.
49 Results on the dimension level arc displayed in appendix B.
160 8 Empirical analysis of the theoretical model
Regression analysis Project management Sid Sig.
Beta level Procurement strategy .04 .638 Procurement competence .41 .000
Rl .187
F 13.353 .000
Table 8.8 Regression analysis to proposition 4 and 5so
Summarizing the above results proposition 5 was supported by the correlation and regression analyses, whereas proposition 4 could only be supported to some extent by the correlation analysis. It seems, that the procurement competence has a strong impact on the project management, whereas the project management supports the project success. But the direct impact of procurement competence on the project success is not significant in the regression analysis. Competence is fine, but it needs to be utilized. Only if the project team is able to apply the available know-how and experience, project success can be guaranteed.
Controversial to the procurement competence, the strategy has only a slight impact on the project execution or management, but strong impact on the project success. Reasoning behind this can be that in this study procurement strategy is limited to the procurement approach with special focus on supplier relationship development. The project management does not explicitly refer to aspects related to supplier relationship development; project management summarizes the quality of the project execution.