The importance of management practices in IS project performance

Abstract

Purpose The literature on software project management is extended into the broader domain of large‐scale IS management by studying enterprise‐wide system upgrade projects. In particular; examines the role that the intervention of project management practices (formal project methodologies and outsourcing) play in large and/or complex IS projects, which result in good project performance. Design/methodology/approach A survey instrument was completed by 449 information systems managers about a specific upgrade project. The primary analytical approach used was structural equation modeling (SEM). Findings It was found that neither project complexity nor project size are good indicators of meeting a project's target date. Large projects that adopted formal project management practices were more probable to meet the project target date. Projects with a high degree of complexity which involved outsourcing and adopted formal project management practices, were more likely to meet the project target date. Practical implications Clearly, the message to managers of IS projects is to establish a project methodology, especially in large, enterprise‐wide projects, and when some degree of outsourcing is required. Research limitations/implications Future research should consider additional measures of performance such as cost, end‐user satisfaction and business value. Originality/value Much had been written in the literature about how large, complex IT projects have high failure rates. Our study provides conclusive evidence that, the greater the degree of methodology implementation, the greater the chance for meeting the project's target date. Prior to this research, this had not been explicitly shown in the research literature.