Relationship between project success factors, project success criteria and project success in SME: Evidence from selected European transitional economies

Abstract

This paper aims to examine the use of project management practices in small and midsize enterprises (SME) and to identify which project success factors (SF) and project success criteria (SC) contribute to project success. The research studies project success factors (SF) and project success criteria (SC) in SMEs such as: a causal relationship between project SF and project SC; perception of SC under full time and non-full time project managers and the use of project management tools within projects in SMEs. The survey includes a sample of 70 Slovenian and 54 Serbian SMEs. Methodologically, the t-test has been used to identify differences in key characteristics between the two countries. The Man-Whitney test was also used for group comparison. The research shows how certain project SF correlate to project SC and project success. The results strongly indicate that client consultation is a key project SF. Project manager role and soft skills as key project SC directly influence on project success. Organizations employing full-time project managers achieve better appreciation among their users than those who do not. Project goal setting was detected as the most important project SC in both countries. Results also strongly confirms that early feedback and continuous engagement to be key principles of agile methodology, which emphasizes “customer collaboration over contract negotiation”. We find that agile principles most highly correspond to contemporary approaches, particularly for stakeholder engagement, iterations and operating through a feedback culture. The findings contribute to the development of existing literature on project management and its practices and show key project SF and key project SC in SMEs. Results in this research have special meaning for researchers and managers in the field of strategic and project management, project selection and implementation, as well as performance of SMEs. This study contributes to the advancement of research in project management considering project SF and key project SC for better project success.

Article history: Received (June 12, 2023); Revised (September 24, 2023); Accepted (October 12, 2023); Published online (November 3, 2023)