Challenges that interact value adding functions of the parent organization on projects: An empirical analysis of Iranian project- based organization in the oil industry

Success or failure of project depends on many contextual and environmental factors, one of which is parent organization Despite having value-adding functions, parent organization faces some challenges in carrying out its functions for projects. As little is known about these challenges, the present study addresses this gap in knowledge. The study was conducted by using qualitative research and Eisenhardt case study method. Data were collected from public sector project-based organizations in the oil industry of Iran. This paper presents parent organization’s functions by considering negative effects in both vertical and horizontal directions. The customized value adding functions of the parent organizations in public sector organizations in the oil industry in Iran are categorized as strategic planning, evaluation, support and selection for vertical parent organization influences, and coordination and integration for horizontal influences. Thirteen challenges in relation to these functions, which interact value creation, were also introduced. The results have important implications for the management of project-based organizations in relation to how challenges can restrict value creation of the parent organizations’ functions.

Keywords:

Project-based organizations , Value-adding functions , Challenges , Oil industry , Public sector.