Does risk management components influence on project success? Evidence from IT sector

Selvakumar, J.; Suganya, G.; Arthi, T.; Pachiyappan, S.

Abstract: All organizations and stakeholders would ideally like to see an information technology (IT) project managed successfully. Many researchers have strongly debated the importance of risk management in project management about the size of the project since it gives project managers a forward-looking view of risks and chances to increase the project's success. The main aim of the study is to determine how risk management parameters and their mediated effects impact the effectiveness of IT projects. Data was collected from 261 IT professionals involved in projects through a structured questionnaire and analyzed using regression and SEM to test their statistical significance and prove the hypothesis. The study arrived at some significant results which showed the relationship of Risk Identification and Risk Analysis on Risk Assessment, which impacts Project Success. It also showed that the success of the project depended on Stakeholders Tolerance and Risk Implementation. In addition to this, the study provides evidence that risk management does not influence the success of the project. The study's discovery of the intervening impact of risk management practices clarifies preconceived conceptions in the risk management sector.

How to cite this paper

 Selvakumar, J., Suganya, G., Arthi, T & Pachiyappan, S. (2024). Does risk management components influence on project success? Evidence from IT sector.Journal of Project Management, 9(3), 269-276.

References

Alter, S., & Ginzberg, M. (1978). Managing uncertainty in MIS implementation. Sloan Management Review, 20(1), 23.
Badewi, A. (2016). The impact of project management (PM) and benefits management (BM) practices on project suc-cess: Towards developing a project benefits governance framework. International journal of project manage-ment, 34(4), 761-778.
Baptestone, R., & Rabechini Jr, R. (2018). Influence of portfolio management in decision-making. Journal of Industrial Engineering and Management, 11(3), 406-428.
Boehm, B. W. (1991). Software risk management: principles and practices. IEEE software, 8(1), 32-41.
Busemeyer, J. R. (2015). Cognitive science contributions to decision science. Cognition, 135 (1), 43-46.
Carvalho, M. M., & Rabechini Jr, R. (2017). Can project sustainability management impact project success? An empiri-cal study applying a contingent approach. International journal of project management, 35(6), 1120-1132.
Chih, Y. Y., & Zwikael, O. (2015). Project benefit management: A conceptual framework of target benefit formula-tion. International Journal of Project Management, 33(2), 352-362.
Derakhshan, R., Turner, R., & Mancini, M. (2019). Project governance and stakeholders: a literature re-view. International Journal of Project Management, 37(1), 98-116.
Didraga, O. (2013). The role and the effects of risk management in IT projects success. Informatica Economica, 17(1).
Ebrahimnejad, S., Moosavi, S. M., & Ghorbanikia, A. (2007). Risk identification and assessment in Iran construction supply chain. Proc. first international risk cong, 169-186.
Engelbrecht, J., Johnston, K. A., & Hooper, V. (2017). The influence of business managers' IT competence on IT project success. International journal of project management, 35(6), 994-1005.
Guide, A. (2001). Project management body of knowledge (pmbok® guide). In Project Management Institute,11(1), 7-8.
Han, R. & Huang, G. (2017). An empirical Analysis of Risk Assessment and Performance on software projects. Project Management Journal, 37(3), pp. 37-48).
Henseler, J., & Schuberth, F. (2023). Partial least squares as a tool for scientific inquiry: Comments on Cadogan and Lee. European Journal of Marketing, 57(6), 1737-1757.
Hillson, D. (2002). Extending the risk process to manage opportunities. International Journal of project manage-ment, 20(3), 235-240.
Juliane, S., & Alexander, K. (2013). Influence portfolio risk management influences IT project portfolio success in IT enterprises in UK. International Journal of Project Management, 26(6), 73-79.
Jun, G. Q. R. & Qingguo, E. (2010) Effects of project risk planning on IT project performance focusing on a case of China vendor firms. Project Management Journal, 31(1), 32-43.
Kerzner, H. (1998). In search of excellence in Project Management. In In search of excellence in project manage-ment (pp. 274-274).
Kinyua., E., Ogollah., K., & Mburu, D.K. (2015). Effect Of Risk Management Strategies On Project Performance Of Small And Medium Information Communication Technology Enterprises In Nairobi, Kenya, International Journal of Economics, Commerce and Management, 111(2),1-30.
Kliem, R. L. (2000). Risk management for business process reengineering projects. Information systems manage-ment, 17(4), 71-73.
Kutsch, E., Djabbarov, I., & Hall, M. (2021). How managers frame and make sense of unexpected events in project im-plementation. International Journal of Project Management, 39(5), 570-580.
Meeampol, S., & Ogunlan, S. O. (2006). Factors affecting cost and time performance on highway construction projects: evidence from Thailand. Journal of Financial Management of property and Construction, 11(1), 3-20.
Miller, R., & Lessard, D. (2001). Understanding and managing risks in large engineering projects. International Journal of Project Management, 19(8), 437-443.
Newcombe, R. (2003). From client to project stakeholders: a stakeholder mapping approach. Construction management and economics, 21(8), 841-848.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory McGraw-Hill series. Psychology, 3.
Olsson, R. (2008). Risk management in a multi‐project environment: An approach to manage portfolio risks. Interna-tional journal of quality & reliability management, 25(1), 60-71.
Pinto, J. K. (2013). Lies, damned lies, and project plans: Recurring human errors that can ruin the project planning pro-cess. Business Horizons, 56(5), 643-653.
PMI, A. (2008). guide to the Project Management Body of Knowledge. In Project Management Institute (Vol 130).
Pritchard, C. (2001). project management maturity modelling is coming of age. Project Manager Today, 13(5), 10-11.
Project Management Institute. (2000). A guide to the project management body of knowledge (PMBOK Guide). Project Management Institute.
Qazi, A., & Dikmen, I. (2019). From risk matrices to risk networks in construction projects. IEEE transactions on engi-neering management, 68(5), 1449-1460.
Raz, T., & Michael, E. (2001). Use and benefits of tools for project risk management. International journal of project management, 19(1), 9-17.
Raz, T., Shenhar, A. J., & Dvir, D. (2002). Risk management, project success, and technological uncertainty. R&d Man-agement, 32(2), 101-109.
Roque, R., & De Carvalho, Y. (2013). Impact of project risk management, assessment of risks on project performance in Brazillian Vendor companies. International Journal of Project Management, 21(2), 97-105.
Sato, T. (2014). Risk-based project value–the definition and applications to decision making. Procedia-Social and Be-havioral Sciences, 119(1), 152-161.
Silva, D. A., Yu, S., Ulge, U. Y., Spangler, J. B., Jude, K. M., Labão-Almeida, C., ... & Baker, D. (2019). De novo design of potent and selective mimics of IL-2 and IL-15. Nature, 565(7738), 186-191.
Standards Association of Australia. (2020). Standard for Risk Management. Vol. 8(2), 974-993
Taherdoost, H. (2018). How to lead to sustainable and successful IT project management? Propose 5Ps guide-line. Propose 5Ps Guideline (August 1, 2018). https://ssrn.com/abstract=3224225 or http://dx.doi.org/10.2139/ssrn.3224225
Thomas, G., & Fernández, W. (2008). Success in IT projects: A matter of definition?. International journal of project management, 26(7), 733-742.
Tinnirello, P C (ed.) (2020). Best Practices Series- Project Management. USA: Auerbach, Vol.12(1), 168-189.
Zmud, R. W. (1980). Management of large software development efforts. MIS quarterly, 4(2), 45-55.