How Temporary Organizing Enables Fraud
FEATURED PAPER
By Isaac Odhiambo-Abuya & Michael Ouma-Owuor
Nairobi, Kenya
Abstract
Projects have become the dominant mode of organizing work across industries, yet project management research has focused almost exclusively on achieving legitimate performance outcomes. This conceptual paper addresses a significant divergence of how the same structural characteristics that make temporary organizations effective, can be weaponized to facilitate, conceal, and legitimize fraud. Drawing on the theory of temporary organizations and organizational deviance scholarship, this study investigates how the four defining features of projects—Time, Task, Team, and Transition—create structural vulnerabilities that sophisticated actors can exploit. Through systematic conceptual analysis and employing theory elaboration as articulated by Fisher and Aguinis, the paper identifies four mechanisms of vulnerability. Equally, the paper develops an analytical framework mapping of each mechanism, its operational indicators, documented evidence, and underlying theoretical sources. The findings reveal that these mechanisms interact to form an integrated syndrome of vulnerability that are distinctive to temporary organizing. The study contributes a diagnostic framework enabling project managers, governance professionals, and organizational leaders to identify fraud-prone project configurations. Actionable recommendations are provided for strengthening project governance through independent oversight, reputational accountability, and structural transparency.
Keywords: Project fraud; Temporary organizations; Project governance; Organizational deviance; Fraud prevention; Project management
1. Introduction
1.1 Background and Problem Framing
Projects have emerged as the primary way to organize work worldwide, and in developed economies, project-based economic activity currently makes up around a third of gross domestic product (GDP) (Schoper et al., 2018; Lundin et al., 2015). This process of “projectification” of the economy is one of the greatest organizational changes that happened in the past half century (Packendorff, 1995; Burke & Morley, 2016).
The theory of the temporary organization that was crystallized in the work of Lundin and Söderholm (1995) under the acronym “4T” which encompasses time, task, team, and transition dimensions, has given researchers and practitioners a robust tool to analyze the essentials of project success. It should be emphasized that these four traits are not limitations but productive forces that facilitate focused actions, innovation and swift decision-making (Bakker, 2010; Söderlund, 2004). Project management research has, understandably, concentrated on harnessing these characteristics for legitimate performance, such as achieving time, cost, and quality objectives and governing projects effectively (Joslin & Müller, 2016; Too & Weaver, 2014).
However, a darker question has been given remarkably little systematic consideration to, namely what happens when the very traits that make transient organizations successful are purposefully used for disingenuous purposes? The importance of this question is reflected in high profile cases. In 2019, the Hertz Corporation sued Accenture for breach of contract, alleging that the consulting firm failed to deliver a functional website and mobile application despite receiving substantial amounts in fees, missing multiple go-live dates, and ignoring specific contractual requirements (The Hertz Corporation v. Accenture LLP, 2019). When Hertz asked why promised features were missing, Accenture reportedly demanded additional fees to fix the deficits that were not of Hertz’ creation. Systematic fraud in logistics contracts was uncovered by investigations carried out under the African Union Mission in Somalia (AMISOM), where temporary mission structures were employed to evade detection (Robinson, 2019). The Boeing 737 MAX development featured conscious concealment that was facilitated by high schedule pressure, which engendered compressed verification processes (U.S. House of Representatives, Committee on Transportation and Infrastructure, 2020).
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How to cite this paper: Odhiambo-Abuya, I. and Ouma-Owuor, M. (2026). The Shadow Side of Projects: How Temporary Organizing Enables Fraud; PM World Journal, Vol. XV, Issue IX, September. Available online at https://pmworldjournal.com/wp-content/uploads/2026/09/pmwj168-Sep2026-Abuya-Owuor-Shadow-Side-of-Projects.pdf
About the Authors
Dr. Isaac Odhiambo-Abuya, PhD
Nairobi, Kenya
Dr. Isaac Odhiambo-Abuya is a distinguished educator and leader in project management at the University of Nairobi, Kisumu Campus, where he directs academic programs and chairs the Research, Innovation and Enterprise Committee. He is deeply committed to graduate mentorship and advancing the field, having co-founded the university’s premier Annual International Conferences in Project Planning & Management and Project Monitoring & Evaluation. He maintains an active membership with the Project Management Institute (PMI). Email: isaac.abuya@uonbi.ac.ke
Michael Ouma-Owuor
Nairobi, Kenya
Michael Ouma-Owuor is a Development Researcher and Program Management Specialist attached to the Center for Policy Projects at the University of Nairobi as an Associate Researcher. His professional engagements center on pro-poor sustainable development, applied policy research, and the management of programs across the development landscape. He brings together practical field experience and research capabilities to bridge the gap between program implementation and evidence generation. He is passionate about strengthening the body of knowledge in program management and contributing professional publications that inform policy direction and development practice, with a particular focus on project governance systems, the effectiveness of development interventions, and institutional transformation within African settings. Email: michael.owuor@centerforpolicyprojects.org
