Decision Making Within Distributed Project Teams: An Exploration of Formalization and Autonomy as Determinants of Success

Competitive advantages and access to competencies are among the most frequent motivations for developing various forms of collaborative relationships. While some firms claim to collaborate at a strategic level, as in joint ventures, others pursue collaboration at a micro level, as in projects. Collaborations at the project level involve a network of dispersed team members actively involved in common activities. This creates new challenges for effective decision making in distributed project teams, as processes are often ill adapted for facilitating collaborative work. Many researchers have studied aspects of these organizational problems. However, questions regarding team autonomy and decision-making processes remain largely underinvestigated. After reviewing the literature on key concepts related to organizational decision making, we conducted an empirical study using a quantitative approach that involved an online survey sent to project management professionals. The analysis of the data clearly indicates that success in managing distributed project teams is linked to team autonomy in conducting project activities and to formal decision-making processes. These findings also highlight the fact that a formal decision-making process is even more important for distributed teams that are highly dispersed.