Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
The Causal Relationship Model of Project Managers’
Competencies Influences: Efficiency of ICT Project Management
Visit Wiangnak* and Somchai Lekcharoen**
This study applies competency theory to project management. The purposes of
this study are to develop and validate a causal relationship between project
managers’ competencies and efficiency of project management. We found that
many papers have discussed the competency of project managers, but we
could not found any papers said about the causal relationship model between
project managers’ competencies and efficiency of project management in
Thailand. The model consisted of four latent variables: knowledge areas,
technical and managerial skill, personal attributes, and efficiency of project
management. The survey sample consisted of 218 project managers in
companies under the ICT (Thailand) industry. SEM is used to analyze the
causal relationship model; SPSS was employed for descriptive statistics. The
result indicated that the adjusted model was consistent with empirical data.
Goodness-of-fit indicators included a Chi-square value of 131.453 with 124
degrees of freedom; p = 0.306; CMIN/DF = 1.060; SRMR = 0.039; GFI = 0.940;
AGFI = 0.917; CFI = 0.998, and RMSEA = 0.017. The variables in the model
2
accounted for 81% (R = 0.81) of variance in efficiency of project management.
Thus, (1) variables with a statistically significant direct influence on the
efficiency of project management were knowledge areas, technical and
managerial skill and personal attributes, and (2) project managers’
competencies were positively correlated and affected efficiency of project
management. Implications of the findings are discussed and further studies are
suggested.
JEL Codes: M15
1. Introduction
A project manager applies knowledge, skills, tools, and techniques to project activities to
meet project requirements. We found that many papers have discussed competency of
project managers, but few empirical studies have been done on the causal relationship
between project managers’ competencies and efficiency of project management. This study
explores a developing competency model for ICT project management using a researchbased approach.
2. Theoretical Background
Competency is an individual characteristic that can be measured or counted reliably.
McClelland (1973) a Harvard University psychologist, argued that the best predictor of what a
person can and will do in present and future situations is what they have actually done in
similar past situations, not his or her intelligence or degree of knowledge and skill. Spencer
and Spencer (1993) summarized 20 years of research using McClelland’s methodology. The
research included 286 studies of entrepreneurial, technical and professional, sales, human
service, and managerial jobs from industry, government, military,
*Visit Wiangnak, Rangsit University, Thailand. Email: visit01@gmail.com
**Somchai Lekcharoen, Department of Information Technology, Rangsit University, Thailand. Email:
s_lekcharoen@yahoo.com
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
health care, education, and religious organizations. He viewed competency as “an underlying
characteristic of an individual that is causally related to criterion-referenced effective and/or
superior performance in a job or situation” (p.9) (Spencer and Spencer, 1993). They identified
the following five competency characteristics: motives, traits, self-concept, knowledge, and
skills. Motives are the things that an individual consistently thinks about or wants that
stimulate action. Motives drive, direct, and select behaviors toward certain actions or goals
and away from others. Traits are physical characteristics and consistent responses to
situations or information. Self-concept is an individual’s attitudes, values, or self-image.
Knowledge is the information that an individual has in specific content areas. Finally, skill is
the ability to perform certain physical or mental tasks.
The definition of project managers’ competencies used in this paper is a cluster of related
knowledge areas, technical and managerial skill, and personal attributes that correlate with
the efficiency of project management and that can be improved by training and development
(Thamrongsak, 2008).
Knowledge areas refer to the application of appropriate knowledge, processes, skills, tools,
and techniques in project management. PMI (2013) Knowledge areas are discussed in the
PMI’s “A Guide to the Project Management Body of Knowledge,” and can be summarized into
the following nine dimensions: (1) Project Scope Management: Processes that limit and
control the work included in a project, ensuring that all the work of the project is included, (2)
Project Time Management: Processes required to ensure the timely completion of the
project, including activity (task) definition, and sequencing processes, (3) Project Cost
Management: Planning, estimating, and controlling costs so that the project can be
completed within the approved budget; includes resource planning and cost budgeting, (4)
Project Quality Management: Ensure project results meet the needs for which the project was
executed; includes quality planning, assurance, and control, (5) Project Human Resources
Management: Organizing and managing the project team; includes training, aligning on
project objectives and goals, defining roles in the project, and assigning project team
members to those roles, (6) Project Communications Management: Linking people (including
team members and stakeholders), ideas, and information throughout the project life cycle;
includes timely generation and collection of information along with its proper dissemination
and archiving, (7) Project Risk Management: Identifying, analyzing, and properly responding
to project risks (opportunities and threats), (8) Project Procurement Management: Acquiring
the products, services, or results from an external source; includes contract management and
control processes necessary to administer contracts, properly manage buyer/vendor
relationships, and manage project obligations to the vendor, and (9) Project Integration
Management: Ensures that all project work elements are coordinated; includes project
planning & execution processes.
Technical and managerial skill refers to how a project manager applies knowledge area to
meet project requirements. This process involves selecting and using appropriate project
management methods effectively throughout a project. Competencies must be related to
performance in the workplace, not what would be desirable to have (Spencer and Spencer,
1993).
Project Management Process: How a project manager applies a technical and managerial
project management methods to meet project requirements. These five PMBOK process
groups describe and organize the project from start to finish as follows (PMI, 2013): (1)
Initiating Process: An idea for a project is carefully examined to determine whether it benefits
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
the organization. During this phase, a decision-making team identifies whether the project
can realistically be completed, to define a new project or new phase of an existing project and
to secure authorization to start, thus, establishing the overall scope, (2) Planning Process: A
project plan, project charter, and/or project scope may be put in writing, outlining the work to
be performed. During this phase, a team should prioritize the project, calculate a budget and
schedule, and determine necessary resources. Establishing the total project scope, setting
objectives, developing the plan to achieve the goals includes re-planning, iterations, rolling
ware and other forms of planning. This step should not be limited to waterfall-style planning,
(3) Executing Process: Resource tasks are distributed and teams of responsibilities are
informed. This is a good time to bring up important project-related information, and execute
the worked defined in the project management plan to achieve the project objectives, (4)
Monitoring and Controlling Process: Project managers compare project status and progress
to the actual plan, as resources perform the scheduled work. During this phase, project
managers may need to adjust schedules or do what is necessary to keep the project on track,
including overseeing progress and performance and adapting the plan as needed, and (5)
Closing Process: After project tasks are completed and the client has approved the outcome,
an evaluation is necessary to highlight project successes and/or learn from the project
history. Additionally all project activities are finalized.
Six Key Managerial Competency: A project manager needs to be effective in a range of
managerial jobs and types of organizations (Don Hellriegel, Susan E. Jackson and John W.
Slocum, 2008): (1) Communication: Refers to the effective transfer and exchange of
information that leads to understanding between yourself and others, and includes informal
communication, formal communication, and negotiations, (2) Planning and Administration:
Involves deciding what tasks need to be done, determining how they can be done, allocating
resources to enable them to be done, and then monitoring progress to ensure that they are
done. This process includes information gathering, analysis, and problem solving; planning
and organizing projects; time management; and budgeting and financial management, (3)
Teamwork: Accomplishing tasks through small groups of people who are collectively
responsible and whose work is interdependent. Managers can become more effective by
designing teams properly, creating supportive team environments, and managing team
dynamics appropriately, (4) Strategic Action: Involves understanding the overall mission and
values of the company and ensuring that your actions and those of the people you manage
are aligned with them. This process includes understanding the industry, understanding the
organization, and taking strategic action, (5) Self-Management: Performing managerial work
for an organization that uses human, financial, and material resources from multiple countries
and serves markets that span multiple cultures, including cultural knowledge and
understanding and cultural openness and sensitivity, and (6) Global Awareness: Performing
managerial work for an organization that used human, financial, informational, and material
resources from multiple countries and serves markets that span multiple cultures.
Arporn (2008) Personal attributes are an inherent characteristic or quality that is often
expressed through what project managers think, do, and feel: (1) Human Relations: Ability to
consult and provide advice; to facilitate discussion and resolve conflict; to develop
relationships with key project stakeholders; to recognize and deal with other cultures; to
establish trust, credibility, and respect; and to be willing to give more one receive, (2) Selfconfidence: The willingness to state and defend ideas and convictions while recognizing
other options, and having the confidence required to stand alone when it is the best course.
Realistically, trust one’s own talent, and (3) Flexibility: Demonstrate sensitivity to the
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
organizational environment. Tolerate ambiguity, shift priorities, change style, and respond
with new approaches as needed to deal with the demands of changing conditions.
Efficiency of Project Management: Managers use the project management triangle to analyze
or understand the difficulties that arise due to implementing and executing projects. All
projects, irrespective of their size, will have constraints. Although many such project
constraints exit, they should not be barriers to successful execution or to effective decisionmaking. Three main interdependent constraints exist in every project, time, cost, and scope,
which is known as Project Management Triangle (PMI, 2013). The project management
challenge is to balance these constraints to create the best possible scope-cost-time
equilibrium. The project manager has to be constantly aware of the equilibrium and trade-off
between these constraints while ensuring the project stays on track for its original goals (Jack
S. Duggal, 2010): (1) Time: Time to complete project activities can vary. Task completion
depends on a number of factors, including the number of people working on the project,
experience, skills, etc, (2) Cost: It is imperative that both the project manager and the
organization have an estimated cost of a project. Budgets will ensure that the project is
developed or implemented below a certain cost, and (3) Scope: The scope of a project looks
at outcomes and consists of a list of deliverables that the project team needs to address.
Quality is not a part of the project management triangle, but it is the ultimate objective.
Hence, the project management triangle implies quality.
3. Research model and Hypotheses
The purpose of this study is verifies the influence that project managers’ competencies in ICT
projects have on his/her efficiency of project management. This study reviewed previous
research on the project managers’ competencies and classified these competencies into
three types: knowledge area, technical and managerial skill, and personal attributes. These
categories were set as exogenous variables. Efficiency of project management was set as an
endogenous variable, and hypotheses were formulated on the relationships between those
variables. Figure 1 shows a schematic diagram of the research model for this study.
X10
X1
X2
X3
X4
X5
X6
X7
X8
X9
X11
Knowledge
Areas
X12
X13
H6
H4
X21
X14
X15
Technical and
Managerial
skill
H5
H1
X16
X17
Personal
Attributes
X22
X23
H2
H3
X18
X19
X20
Efficiency of
project
management
Y1
Y2
Y3
Fig. 1. Research Model
Table 1 shows a variables summary of the research model for this study.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Table 1. Variable Summary
Latent
Knowledge
Areas
Technical and
Managerial skill
Personal
Attributes
Efficiency of
Project
management
Observed
X1
X2
X3
X4
X5
X6
X7
X8
X9
X10
X11
X12
X13
X14
X15
X16
X17
X18
X19
X20
X21
X22
X23
Y1
Y2
Y3
Description
Project scope management
Project time management
Project cost management
Project quality management
Project human resource management
Project communication management
Project risk management
Project purchase management
Project integration management
Initiating process
Planning process
Executing process
Monitoring and Controlling process
Closing process
Teamwork
Communication
Planning and Organization
Self-Control
Leader/Chief
Problem solving and Decision making
Human relations
Flexibility
Self confidence
Efficiency of scope management
Efficiency of time management
Efficiency of cost management
Hypotheses: To verify the variables included in the research model, the study set up
hypotheses with regard to major factors that work between exogenous variables (project
manager's knowledge areas, technical and managerial skill, and personal attributes) and an
endogenous variable (efficiency of project management) based on theoretical relevance.
Competency: McClelland (1973) claimed that competency and individual characteristics
predict successful job performance. Parry (1998) confirmed that competency correlates with
job performance, which can be measured and enhanced through training. Armstrong (2006)
suggested that competency could contribute to high levels of performance between
individuals as well as organizations.
Project manager competency has three constituents: (1) Knowledge Area: what an individual
knows about Project Management, (2) Technical and managerial skill: what an individual is
able to do while applying project management knowledge area, and (3) Personal attributes:
how an individual behaves while performing on a project. The following hypotheses were
formulated to verify the influence of project manager competency in each category on
effective project management:
H1. Knowledge area has a positive (+) direct influence on effective efficiency of project
management.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
H2. Technical and managerial skill has a positive (+) direct influence on effective efficiency of
project management.
H3. Personal attributes have a positive (+) direct influence on effective efficiency of project
management.
H4. Personal attributes have a positive (+) correlate on effective knowledge area.
H5. Personal attributes have a positive (+) correlate on effective technical and managerial
skill.
H6. Knowledge area has a positive (+) correlate on effective technical and managerial skill.
4. METHODOLOGY
Data were collected from 230 project managers in 25 companies in Thailand. The companies
were registered with the Thailand stock market and were under the ICT industry. A survey
was conducted by individual project managers in June 2014. A total of 220 questionnaires
were returned for an overall return rate of 96% and of these 218 were completed and
analyzed. Table 2 shows the characteristics of project managers among the respondent.
Table 2. Characteristics of the respondent
Category
Frequency
Sex.
Age.
Education.
Work experience
for project
management.
Project value.
Man
Women
27-33 years old
34-40 years old
41-47 years old
> 47 years old
< Bachelor
Bachelor
Master degree
1-5 years
6-5 years
11-15 years
> 15 years
1-3 million USD
3-15 million USD
15-30 million USD
>30 million USD
208
10
112
49
42
15
4
185
29
129
30
40
19
144
18
18
38
Percentage
(%)
95.4
4.6
51.4
22.5
19.3
6.9
1.8
84.9
13.3
59.2
13.8
18.3
8.7
66.1
8.3
8.3
17.4
Operational definitions of variables: In this study, the operational definitions of measures and
the measurement items are as follows: (1) Project managers’ competencies: a cluster of
knowledge areas, technical and managerial skill, and personal attributes, (2) Knowledge
areas: “What a project manager knows about the application processes, tools, and
techniques in project activities” (measured using nine survey items), (3) Technical and
Managerial skill: “How a project manager applies technical and managerial methods to meet
project requirements” (measured using eleven survey items), (4) Personal attributes: “How a
project manager behaves when performing activities in a project environment” (measured
using three survey items), and (5) Efficiency of project management: Perceived efficiency and
effectiveness of the project’s success (measured using three survey items).
5. RESULT
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Analysis of the structural model: The data analysis used Structural Equation Modeling (SEM)
with a full model analysis intended to test the models and hypotheses based on the research
questions. The results indicated that the model was not consistent with the empirical data.
Goodness of fit indicators included a chi-square value of 1436.248 with 293 degrees of
freedom; p = 0.000; GFI = 0.718; AGFI = 0.664; CFI = 0.743, SRMR = 0.146 and RMSEA =
0.134. The variables in the model accounted for 34% of the variance in efficient project
management. The researchers adjusted the model as SEM suggested; the results of data
processing for analysis are illustrated in Figure 2.
Figure 2. The adjusted model
From the result of data processing, the researcher summarized the result of the SEM
analysis, which had a good fit value as shown in Table 3.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Goodness of fit
index
Probability
CMIN/DF
SRMR
GFI
AGFI
TLI
CFI
RMSEA
HOELTER
Table 3. Model Fit Summary
Cutoff criteria for fit
Result
indices
> 0.05
0.306
< 2.0
1.060
< 0.05
0.039
> 0.90
0.940
> 0.90
0.917
> 0.95
0.997
> 0.95
0.998
< 0.05
0.017
> 200
250
Remark
Good
Good
Good
Good
Good
Good
Good
Good
Good
Based on SEM analysis, the hypotheses were accepted (see Table 3) and the result
complied with the criteria for goodness-of-fit; Chi-square = 131.453, probability = 0.306;
CMIN/ DF = 1.060; SRMR = 0.039; GFI = 0.940; TLI = 0.999; CFI = 0.998; RMSEA = 0.017
and HOELTER = 250. The results for the overall model show that all indicators used to form
the research model complied with goodness-of-fit criteria. The adjusted model was consistent
with the empirical data (Kanlaya, 2013).
Hypothesis Testing: Testing was based on the results of data processing using a SEM
analysis to prove the proposed hypotheses. Hypothesis testing was done by analyzing the
results for C.R. value and p value as seen in Table 4, which required that the C.R. and p
values of ± 1.96 and ≤ 0.05, respectively (James L, 2009). Based on of analysis, all
hypotheses were accepted.
Table 4. Regression Weights

S.E.
C.R.
P
<---
Technical and
Managerial
skill
0.519
0.428
2.656
0.008
<---
Personal
Attributes
0.346
0.331
2.656
0.008
<---
Knowledge
Areas
0.429
0.644
2.448
0.014
Technical and
Managerial skill
<-->
Personal
Attributes
0.237
0.060
3.23-
0.001
Knowledge
Areas
<-->
0.228
0.037
3.017
0.003
Knowledge
Areas
<-->
0.182
0.046
2.555
0.011
Variables
Efficiency of
Project
management
Efficiency of
Project
management
Efficiency of
Project
management
Personal
Attributes
Technical and
Managerial
skill
Hypothesis Testing 1: Knowledge areas have a positive (+) influence on effective efficiency of
project management. A parameter estimation between knowledge areas against the
efficiency of project management showed significant positive results (CR = 2.448, p = 0.014).
Hypothesis 1 was accepted.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Hypothesis Testing 2: Technical and managerial skill have a positive (+) influence on
effective efficiency of project management. A parameter estimation between technical and
managerial skill against the efficiency of project management showed significant positive
results (CR = 2.656, p = 0.008). Hypothesis 2 was accepted.
Hypothesis Testing 3: Personal attributes have a positive (+) influence on effective efficiency
of project management. A parameter estimation between personal attributes against the
efficiency of project management showed significant positive results (CR = 2.656, p = 0.008).
Hypothesis 3 was accepted.
Hypothesis Testing 4: Personal attributes have a positive (+) correlate on effective knowledge
area. A parameter estimation between personal attributes against knowledge areas showed
significant positive results (CR = 3.017, p = 0.003). Hypothesis 4 was accepted.
Hypothesis Testing 5: Personal attributes have a positive (+) correlate on effective technical
and managerial skill. A parameter estimation between personal attributes against technical
and managerial skill showed significant positive results (CR = 3.230, p = 0.001). Hypothesis 5
was accepted.
Hypothesis Testing 6: Knowledge areas have a positive (+) correlate on effective technical
and managerial skill. A parameter estimation between knowledge areas against technical and
managerial skill showed significant positive results (CR = 2.555, p = 0.011). Hypothesis 6 was
accepted.
Summary Result: A summary of the results is as follows: (1) The cluster of knowledge areas,
technical and managerial skill, and personal attributes or competencies is a factor in
influencing the effectiveness of project management positively; (2) knowledge areas,
technical and managerial skill, and personal attributes influenced effective project
management positively and directly; (3) knowledge areas yielded a positive and correlate to
technical and managerial skill; and (4) Personal attributes yielded a positive and correlate to
both knowledge areas and technical and managerial skill. The factor loadings () revealed
several items which are: (1) knowledge areas consist of project time, integration, scope,
quality, communication and cost management; (2) technical and managerial skill consist of
teamwork, leader/chief, communication, monitoring and controlling process, executing
process and planning and organization process; (3) personal attributes consist of human
relations, flexibility and self-confidence, (4) efficiency of project management consists of
efficiency of scope, cost, and time management.
5. CONCLUSIONS
The competency model and implications from the current findings are valuable to the ICT
industry in recruiting, selecting, training, and developing project managers. The results of this
study prove that the efficiency of project management can be done by improving knowledge
areas, technical and managerial skill, and personal attributes of ICT project managers.
Improving the personal attributes of project managers can do the increase in knowledge
areas and technical and managerial skill. Finally, competency directly affects the efficiency of
project management.
End Notes
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
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Appendix