From Strategy to Implementation: How PMOs Create Value in SME´s Project-Based Organizations

Abstract

This study examines how Project Management Offices (PMOs) contribute to value creation and support the implementation of strategy in small and medium-sized enterprises (SME`s) operating in project-based organizations. The research addresses a common challenge faced by organizations in translating strategic objectives into effective project execution, particularly within resource-constrained SME organization. A quantitative research design was adopted, and primary data were collected through a structured questionnaire from 50 respondents working in SME project-based organizations. The collected data were analyzed using descriptive statistics and regression analysis to examine relationships among key variables. The findings indicate that PMOs play a significant role in defining project goals, standardizing processes, supporting project managers, and enhancing coordination across departments. The results further reveal a strong positive and statistically significant relationship between PMO effectiveness and value creation, as well as between strategic alignment and value creation. Although challenges such as limited resources, unclear roles, and lack of management support were identified, their impact on value creation was found to be insignificant. The study has both theoretical and practical implications. Theoretically, it contributes to the literature by providing empirical evidence that PMOs in SME project-based organizations function as strategic enablers that strengthen strategic alignment and value creation. In practically, the study recommends that SME managers need to enhance PMO functions by establishing clear roles, enhancing communication and training project managers and project teams appropriately. It also shows that SMEs are able to enhance performance of projects, resource use and organizational value by aligning their PMO activities with their business strategy. The originality of this study lies in its focus on PMOs within SME project-based organizations, an area that has received less attention compared to large organizations. By using primary data from SME employees, the study provides context specific evidence on how PMO effectiveness and strategic alignment contribute to value creation in resourceconstrained environments.