The relationship between project governance and project success

This study looks at the relationship between project governance and project success from an agency theory and stewardship theory perspective. For that project governance was operationalized respectively as a) the extent of shareholder versus stakeholder orientation and b) the extent of behavior versus outcome control, both exercised by the parent organization over its project. A cross-sectional, worldwide online survey yielded 254 usable responses. Factor and regression analyses indicate that project success correlates with increasing stakeholder orientation of the parent organization, while the types of control mechanisms do not correlate with project success. Results support the importance of stewardship approaches in the context of successful projects. •Stakeholder orientated project governance is a project success factor.•Control oriented structures are not generally correlated to project success.•Stewardship theory was shown to be an appropriate lens for successful project governance.•All dimensions of project success used in this study are correlated to the governance orientation.•The success dimension “future potential” is most strongly correlated to the governance orientation.