Organizational Factors Influencing Project Success

Effective communication is usually a positive factor for management processes, because the greater the open communication, the shorter the social distance and cooperation in organizational relationships. For better organizational performance, it is important that managers plan not only the formal communication mechanisms, but also the non-formal. Good communication is related to provision of adequate networking and required data to all key actors in project implementation. Effective communication tends to encourage teamwork, increase motivation and ensure the involvement of all key stakeholders, which favors the probability of projects achieving their goals within the assigned time and resources.

Hagen & Park found a significant positive relationship between open communication and organization outcomes in Six Sigma projects. By analyzing construction firms, Wu et al. noted that it is important to enhance the willingness to communicate and to efficiently enhance the formal communication among various project teams during project implementation. Musah et al. observed that one of the main sources of conflict in projects is the communication breakdown. Information technology is an important mechanism that can improve knowledge transfer in project environments, since this technology could increase the openness of communication and make knowledge transfer easier, which may overcome the difficulties of geographical distance. Thus, the following hypothesis can be established:

Hypothesis 2: Good communication is positively related to project success.