TAILIEUCHUNG - HOW SOFTWARE PROJECT RISK AFFECTS PROJECT PERFOR MANCE: AN INVESTIGATION OF THE DIMENSIONS OF RISK AND AN EXPLORATORY MODEL

In the military, you cannot fight a battle without ammunition, guns, food and transport. This is an aspect of logistics. Similarly, you cannot run a project without certain requirements, . you cannot develop a curriculum without a budget, subject experts, students to benefit from the curriculum, and so forth. Project Risks Project risks are the anticipated and unanticipated obstacles that might arise in the course of a given project. A risk analysis is conducted in order to isolate the most likely ones, and involves answering the question: “What could go wrong?” . | Decision Sciences Volume 35 Number 2 Spring 2004 Printed in the . How Software Project Risk Affects Project Performance An Investigation of the Dimensions of Risk and an Exploratory Model Linda Wallacet Department of Accounting and Information Systems Virginia Polytechnic Institute and State University 3007 Pamplin Hall 0101 Blacksburg VA 24061 e-mail wallacel@ Mark Keil Department of Computer Information Systems J. Mack Robinson College of Business Georgia State University Atlanta GA 30303 e-mail mkeil@ Arun Rai Center for Process Innovation and Department of Computer Information Systems J. Mack Robinson College of Business Georgia State University Atlanta GA 30303 e-mail arunrai@ ABSTRACT To reduce the high failure rate of software projects managers need better tools to assess and manage software project risk. In order to create such tools however information systems researchers must first develop a better understanding of the dimensions of software project risk and how they can affect project performance. Progress in this area has been hindered by 1 a lack of validated instruments for measuring software project risk that tap into the dimensions of risk that are seen as important by software project managers and 2 a lack of theory to explain the linkages between various dimensions of software project risk and project performance. In this study six dimensions of software project risk were identified and reliable and valid measures were developed for each. Guided by sociotechnical systems theory an exploratory model was developed and tested. The results show that social subsystem risk influences technical subsystem risk which in turn influences the level of project management risk and ultimately project performance. The implications of these findings for research and practice are discussed. Subject Areas Sociotechnical Systems Theory Software Project Risk and Structural Equation Modeling. The authors would like to thank the Project .

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