Defense vs. civilian projects: The effect of project type on performance

The search for factors that lead to better project performance and success spans many years of research. The project management literature has dealt extensively with factors affecting projects' performance and. More recent studies have shown that the universalistic approach which assumes that all projects are similar may not be optimal for managing projects. Different types of projects should be managed in different ways. The current study analyzes defense projects vs. projects aimed at the civilian market. The main projects' attributes are identified using Shenhar & Dvir's framework for projects' classification along four dimensions: novelty, technological uncertainty, complexity and pace. Our basic assumption was that defense projects differ from civilian projects along these four dimensions, and these differences affect performance and success. Results show that defense projects differ from civilian projects in their levels of novelty and technological uncertainty, but there are no significant differences in their complexity and pace levels. The higher levels of novelty and complexity result in lower efficiency of defense projects in terms of meeting schedule and budget goals, but these projects create more opportunities for future businesses, by entering uncovered areas in the marketplace (new market segments and new lines of products) and establishing the technological and knowhow base for improved products.