Effects of Risk Management Practices on IT Project Success

Open access

Abstract

Successful management of an information technology (IT) project is the most desirable for all organisations and stakeholders. Many researchers elaborated that risk management is a key part of project management for any project size. Risk management is so critical because it provides project managers with a forward-looking view of both threats and opportunities to improve the project success. The objectives of this research are to explore organisational factors affecting IT project success and risk management practices influencing IT project success. Risk management practices include risk identification, risk analysis, risk response planning, and risk monitoring and control. The IT project success is measured by process performance and product performance. Data are collected from 200 project managers, IT managers, and IT analysts in IT firms through questionnaires and analysed using Independent Sample t-test, One-way ANOVA, and Multiple Linear Regression at the statistical significance level of 0.05. The results show that the differences in organisational types affect IT project success in all aspects, while the differences on organisational sizes affect IT project success in the aspect of product performance and total aspects. Risk identification and risk response planning influence the process performance and the total aspects of IT project success. Risk identification has the highest positive influence on product performance, followed closely by risk response, while risk analysis negatively influences product performance.

[1] Bloch M., Blumberg S., Laartz J., Delivering large-scale IT projects on time, on budget, and on value, McKinsey & Company in conjunction with the University of Oxford, available: http://www.mckinsey.com/businessfunctions/business-technology/our-insights/, last accessed 11th February 2016.

[2] Randell A., Spellman E., UlrichW.,Wallk J., Leveraging Business Architecture to Improve Business Requirements Analysis, Business Architecture Guild Whitepaper 2014.

[3] Jenner S., Why do projects ‘fail’ and more to the point what can we do about it? The case for disciplined, ‘fast and frugal’ decision-making, PM World Journal, 5, 3, 2015.

[4] Lavinson M., IT Project Management: 10 Less- Considered Keys to Success, 2010, available: http://www.cio.com/article/2417296.

[5] Didagra O., The Role and the Effects of Risk Management in IT Projects Success, Informatica Economic ˘a, 17, 1, 2013.

[6] Bannerman P.L., Risk and Risk Management in Software Projects: A reassessment, Journal of Systems and Software 81, 12, 2118-2133 2008.

[7] Taylor H., Artman E., Woelfer J.P., Information Technology Project Risk Management: Bridging the Gap between Research and Practice, Journal of Inform Technology, 27, 17-34, 2012.

[8] Schwalbe K., Information Technology Project Management 7th, Course Technology, Cengage Learning 440-446, 2014.

[9] Baccarini D., Salm G., Love P.E.D., Management of risks in information technology projects, Industrial Management & Data Systems, 104, 4, 286-295, 2004.

[10] Alhawari S., Karadech L., Talet N.A., Mansour E., Knowledge-based risk management framework for information technology project, International Journal of Information Management, 32, 1, 50-65, 2012.

[11] Taylor H., Artman E., Woelfer J.P., Information technology project risk management: bridging the gap between research and practice, Journal of Information Technology, 27, 17-34, 2012.

[12] Crader B., What makes an IT Project Successful? Nonprofit Edition, NpENGAGE, available: http://npengage.com/nonprofit-technology/whatmakes-project-successful-nonprofit-edition/, last accessed 5th May 2015.

[13] Judgev K., Müller R., A Retrospective Look at Our Evolving Understanging of Project Success, Project Managament Journal, 36, 4, 19-31, 2005.

[14] Blaskovics B., The Impact of Project Manager on Project Success: The case of ICT sector, Society and Economy, 38, 2, 261-281, 2016.

[15] DeLone W.H., McLean E.R., Information Systems Success: The Quest for the Dependent Variable, Information Systems Research, 3, 1, 60-95, 1992.

[16] DeLone W.H., McLean E.R., The DeLone and McLean Model of Information Systems Success: A Ten-Year Update, Journal of Management Information Systems, 19, 4, 9-30, 2003.

[17] DeLone W.H., McLean E.R., Measuring E-Commerce Success: Applying the DeLone & McLean Information Systems Success Model, International Journal of Electronic Commerce, 9, 1, 31-47, 2004.

[18] Sudhakar G. P., A model of critical success factors for software projects, Enterprise Information Management 25, 6, 537-558, 2012.

[19] Müller R., Martinsuo M., The impact of relational norms on information technology project success and its moderation through project governance, International Journal of Managing Projects in Business, 8, 1, 176-154, 2015.

[20] Atkinson R., Project management: cost, time and quality, two best guesses and a phenomenon it’s time to accept other success criteria, International Journal of Project Management, 17, 4, 337-343, 1999.

[21] Wateridge J., How can IS/IT projects be measured for success?, International Journal of Project Management, 16, 1, 59-63, 1998.

[22] Project Management Institute A Guide to the Project Management Body of Knowledge, 3rd ed., Newtown Square, Pennsylvania, 2003.

[23] Martin N.L., Pearson J.M., Furumo K., IS Project management: Size, Practices and Project Management Office, Journal of Computer Information Systems, 47, 4, 52-60, 2007.

[24] Mahaney R.C., Lederer A.L., An Agency Theory Explanation of Project Success, The Journal of Computer Information Systems, 51, 4, 102-113, 2011.

[25] Iacovou C.L., Benbasat I., Dexter A.S., Electronic data interchange and small organizations: adoption and impact of technology, MIS Quarterly, 19, 4, 465-485, 1995.

[26] Nelson R., Project retrospectives: evaluating project success, failure and everything in between, MIS Quarterly Executive, 4, 3, 361-372, 2005.

[27] Peppard J., Ward J.M., Daniel E.M., Managing the realization of business benefits from IT investments, MIS Quarterly Executive, 6, 1, 1-11 2007.

[28] Gable G.G., Sedera D., Chan T., Re-conceptualizing information system success: the IS impact measurement model, Journal of the Association for Information System, 9, 7, 377-408, 2008.

[29] Jones M.C., Zmud R.W., Clark T.D., ERP in practice: a snapshot of post installation perception and behaviors, Communications of the Association for Information Systems, 23, 437-462, 2008.

[30] Ward J., Daniel E.M., The role of project management offices (PMOs) in IS project success and management satisfaction, Journal of Enterprise Information Management, 26, 3, 316-336, 2013.

[31] Baccarini D., The logical Framework Method for Defining Project Success, Project Management Journal, 30, 4, 25-32, 1999.

[32] Nidumolu S., Standardization, Requirements Uncertainty and Software Project Performance, Information and Management, 31, 3, 135-150, 1996.

[33] Jun L., Qiuzhen W., Qingguo M., The effects of project uncertainty and risk management on IS development project performance: A vendor perspective, International Journal of Project Management, 29, 923-933, 2011.

[34] Wallace L., Keil M., Arun R., How software project risk affects project performance: an investigation of the dimensions of risk and an exploratory model, Decision Sciences, 35, 2, 289-321, 2004.

[35] Pheng L.S., Chuan Q.T., Environmental factors andwork performance of project managers in the construction industry, International Journal of Project Managemant, 24, 24-37, 2006.

[36] Allen M., Alleyne D., Farmer C., McRae A., Turner C., A Framework for Project Success, Journal of Information Technology and Economic Development, 5, 2, 1-17, 2014.

[37] Dixon T., Pottinger G., Jordan A., Lessons from the private finance initiative projects in the UK: Benefits, problems and critical success factors, Journal of Property Invest. Finance, 23, 5, 412-423, 2005.

[38] Cragg P., King M., Small-firm computing: motivators and inhibitors, MIS Quarterly, 17, 1, 47-53, 1993.

Management and Production Engineering Review

The Journal of Production Engineering Committee of Polish Academy of Sciences and Polish Association for Production Management

Journal Information


CiteScore 2016: 0.48

SCImago Journal Rank (SJR) 2016: 0.126
Source Normalized Impact per Paper (SNIP) 2016: 0.551

Cited By

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 1628 1303 71
PDF Downloads 1260 1079 37