Effect of optimism bias on project success with The moderating role of transformation Leadership style: an empirical analysis of Development sector in Pakistan

Abstract

The purpose of this research is to examine the effect of optimism bias on project success with the moderating role of transformation leadership style. Two independent variables are studied under the term Optimism Bias, one is project schedule in terms of optimism bias and second is, team competency in terms of optimism bias, to assess their impact on project success with the moderating role of transformation leadership style. The research is conducted on the development sector in Pakistan, specifically the non-governmental organizations based in Islamabad and Rawalpindi. This research is based on a quantitative study in which a survey questionnaire was distributed both in hard and soft form. The population of this study was those professionals working on the development sector’s projects and had a supervisory role. Out of 280, 200 forms were received and analyzed accordingly in order to fulfill the purpose of this research. The research model was tested using multiple regression analysis and Andrew F. Hayes, Model 1 for moderation analysis. The finding of this research shows that there is no significant relationship between project schedule in terms of optimism bias and project success. A significant and positive relationship is found out between team competency in terms of optimism bias and project success. Moreover, the moderating variable i.e. transformational leadership style significantly and positively affects the relationship between project schedule in terms of optimism and project success and team competency in terms of optimism bias and project success. The study also shows a significant and positive relationship between transformational leadership style and project success. It is observed that limited research is done on project management approaches and its implication in the development sector. Researchers and practitioners should conduct more research on the development sector in a project management context. The limitation of the research is that this research is conducted on non-profit organizations based in Islamabad and Rawalpindi only, with limited sample size. This research will give direction to the researchers and practitioners to involve development sector more while doing research in the field of project management. The practical implication of this study is that it will give professionals and practitioners working in the development sector to apply this study in the real term. The findings of this research can be implemented on projects and a better understanding and application of the subject can be developed practically