Understanding Runaway IT Projects: Preliminary Results From A Program Of Research Based On Escalation Theory

Abstract

Information technology (lT) projects can fail for any number of reasons, and can result in considerable financial losses for the organizations that undertake them. One pattem of failure that has been observed but seldom studied is the runaway project that takes on a life of its own. Such projects exhibit characteristics that are consistent with the broader phenomenon known as escalating commitment to a failing course of action. Several theories have been oflered to explain this phenomenon, including sel$justi;fcation theory and the so-called sunk cost eflect which can be explained by prospect theory. This paper discusses the results of a series of experiments designed to test whether the phenomenon of escalating commitment could be observed in an IT context. This paper focuses not on& on the results of the research which is still in progress, but also on the challenges that have been faced in conducting the research.