How good governance leads to better project performance through improved decision-making

Purpose Previous research suggests good governance is associated with improved project performance, but the link was unknown. The link may be that good governance facilitates good decision-making. A recent paper suggested good governance creates a context where good project management thrives, appointing competent people to make decisions. Design/methodology/approach This article investigates further. A review was conducted exploring the relationship between governance and decision-making via four organizational behavior constructs. We investigate how governance influences the construct and the construct influences governance and their impact on decision-making. Findings Four behavioral constructs both influence and are influenced by governance. These behavioral constructs influence decision-making through mental models based on both secondary (conscious) and primary (unconscious) processes. Further, institutional governance appoints actors who were mindful of the organization, self-responsible, and self-organizing to a degree that matches the goals of the organization. Good governance appoints competent people to make good decisions. Practical implications Guidance is given about the relationship between four behavioral constructs and governance. This could lead to improved decision-making in organizations and improved project performance. This can influence people’s sense of self-responsibility and self-awareness and their willingness to take on responsibility. Originality/value In this article, we have reviewed how governance influences the four behavioral constructs and thus how governance may lead to good decision-making and hence to improved project performance, meaning governance is the cause of good project performance.