Project Management Office in the Nongovernmental Organization as a Driver of Sustainable Competitive Advantage: A Dynamic Capabilities Approach

Abstract

The purpose of this research is to evaluate the possible impact of project management office (PMO) on the performance of projects of nongovernmental organizations (NGOs), under the lens of dynamic capabilities. To do so, an ex post facto study was carried out, using the difference-in-differences (DID) technique. The data for the study were collected in quarterly performance reports of six projects over 3 years of the Brazilian environmental NGO Instituto Terra. The results lead to the proposition that the PMOs in NGOs act as catalysts of dynamic capacities, allowing these organizations to reach higher levels of performance in their projects. It is argued that the PMO has contributed to making the NGO able to perceive opportunities and threats (sense), avail opportunities (seize), and maintain the conditions of competitiveness by the continuous improvement of the business assets (transforming and reconfiguring), leading to the obtention of sustainable competitive advantage through organizational learning. Thus, the scope of the PMO is expanded as a facilitator of organizational learning through the management of projects and the development of dynamic capabilities to meet the specificities of each project and context.