The Moderating Role of Project Complexity and Strategic Agility Between Absorptive Capacity, Project Success, And Business Success

Abstract

Organizations must harness external sources to thrive amidst complexity and change in a rapidly evolving business landscape. Drawing upon Complexity Theory, this research delves into the impact of absorptive capacity on project and business success within the realm of IT projects in Financial Services. Moreover, it investigates the moderating effects of project complexity and strategic agility on these relationships. A survey of 135 small and medium enterprises revealed that project complexity and strategic agility play pivotal roles in shaping the outcomes of absorptive capacity on project and business success. This study contributes to project management literature by shedding light on the nuanced interplay between absorptive capacity, project complexity, and strategic agility. It underscores the importance of organizations evaluating these factors to safeguard and expand their market presence amidst fierce competition and evolving stakeholder expectations. Organizations can enhance their resilience and sustain long-term success by recognizing the significance of absorptive capacity and adaptability in navigating dynamic environments.