Influence of Project Governance on Innovative Project Success: The Mediating Role of Digital Maturity in Project-Based Organizations

In the current digital era, implementing an effective governance system is crucial for project-based organizations (PBOs). The scientific issue addressed in this study is the lack of understanding of how project governance interacts with digital maturity and organizational parameters in driving innovative project success in PBOs. This study aims to investigate the relationship between project governance and innovative project success, mediated by digital maturity, and moderated by transformational leadership and flexible culture. Drawing on the resource-based view (RBV) and dynamic capabilities theory (DCT), we develop a theoretical model and employ a field survey with 215 Pakistani PBOs, analyzed using PLS-SEM. RBV examines how project governance within an organization operates, while DCT demonstrates the adaptive capabilities of digital maturity through culture and leadership practices that are associated with success. The empirical findings demonstrate that project governance is positively associated with innovative project success both directly and indirectly through the mediation of digital maturity. Furthermore, the relationship between digital maturity and innovative project success is also positively associated with transformational leadership and flexible culture. The study findings show that effective governance in digitally mature organizations, in conjunction with leadership and culture, is essential to foster innovation-driven project success in PBOs. Future research may investigate other external conditions, including agile organizational structure and governance issues throughout the project life cycles, leadership and culture, and the competency of individual team members in connection with organizational digital maturity.