The productivity dilemma in project-based firms:why do organizations tie their own hands and what can managers do to untie them?

Abstract

In repetitive operations the productivity dilemma has been widely studied, but there is a lack of research in non-repetitive operations, such as in project-based firms. This paper investigates why project-based firms foster or hinder project flexibility through an embedded multi-case study with six projects within a large German project-based firm. The results suggest that although such firms have projects as their key source of revenue, their focus lies in longevity and survival and this logic is, in some instances, at odds with the temporary nature of the project context.