The effects of project uncertainty and risk management on IS development project performance: A vendor perspective

The structural contingency perspective has been widely used in information systems development (ISD) project risk management research. This paper develops an integrative model to explore the moderating effects of uncertainty on the relationship between risk management and IS development project performance from a vendor perspective, rather than the client perspective that is mainly employed in the literature. A survey-based research design is used to collect data to test the proposed model. The results reveal that project uncertainty can moderate the effects of project planning and control on process performance and the effects of user participation on product performance. More specifically, the results indicate that project planning and control makes a greater contribution to process performance when there is a low level of inherent uncertainty and that user participation makes a greater contribution to product performance when there is a high level of inherent uncertainty. The results of this study contribute to a more acute understanding of the contingency approach to ISD project risk management.

Research Highlights► We develop an integrated IS project risk management model from a vendor perspective. ► Uncertainty can moderate the effects of risk management on project performance. ► Enhancing planning & control will improve process performance for low risk projects. ► Enhancing user participation will improve product performance for high risk projects.