Many information systems (IS) projects encounter significant problems. The literature suggests that decision-makers can be misled by overoptimistic estimates. We argue that such overoptimism may also be present in the choice of language in business cases. In this study, we analyzed the usage of such framing in 20 business cases for large IS projects of the Dutch government. Our findings show that newly proposed systems are systematically framed using positive adjectives, whereas the existing systems are framed using negative adjectives. This pattern of framing may subconsciously bias the decision-makers toward investing in new IS projects.

Information systems outsourcing has not only become prevalent but also involves an increasingly wide range of activities beyond the traditional programming, testing, documentation, and localization activities to include complex business-focused project planning, process design, requirements determination, and logical and physical systems designs. Such complex IS outsourcing often requires interactions among various stakeholders across different locations and cultures and therefore is much more difficult to manage than the traditional IS outsourcing. Coordination and control have been viewed as especially important project management strategies for managing project activities; however, little research has focused on how they relate to each other and how they collectively affect the performance of complex IS outsourcing projects. In this study, we examine the differential performance effects of outcome and behavior controls on coordination and show that the effect of outcome control on project performance is mediated by coordination.

Lack of risk management or its inadequate application is one reason that software development projects fail. Agile methods, which have become increasingly popular, do not offer specific activities to manage risks. We develop and evaluate a tool for managing risks in software development projects that use agile methods. The proposed tool provides a collection of risk management practices and an iterative lifecycle. To analyze the effectiveness of the proposed tool we conducted an experiment with the participation of experts in agile methods. Our tool increased the effectiveness of risk response planning without increasing the time invested in this process.

Many Information Systems (IS) projects fail to be completed within budget and on schedule. A contributing factor is the so-called planning fallacy in which people tend to underestimate the resources required to complete a project. In this paper, we propose that signals of the planning fallacy can be detected in a project’s business case. We investigated whether language usage in business cases can serve as an early warning signal for overruns in IS projects. Drawing on two theoretical perspectives – the Linguistic Category Model (LCM) and Construal Level Theory (CLT) – two sets of rival hypotheses were tested concerning the relationship between project overruns and whether the language usage in a business case is abstract or concrete. A linguistic analysis of the business cases of large IS projects in the Netherlands suggests that concrete language usage in the business case is associated with bigger budget and schedule overruns. For researchers, our study contributes to the existing literature on the importance of language usage. For practitioners, our study provides an early warning indicator for overruns.

Prior research on escalation in online auctions neglects the role of product involvement, despite the importance of involvement in shaping purchasing decisions. In this study, we develop and test a research model in which product involvement moderates the effects of two key escalation drivers—sunk cost and completion—on an individual’s online bidding behavior. Results indicate that when product involvement is high, completion drives escalation behavior, but when product involvement is low, sunk cost drives escalation behavior. Consistent with prior work, the interaction of sunk cost and completion was a significant predictor of willingness to continue bidding.

While performance appraisals provide an opportunity for managers to review employee performance, prior research points to potential negative consequences associated with performance appraisals. Specifically, prior IS research suggests that relative and criticism-based appraisals can have an undesirable impact on employee behaviour. Motivated by this, in this study we theorised and empirically investigated how relative and criticism-based appraisals can influence an IT project member’s tendency to continue working on a task despite encountering serious setbacks (i.e., task-level escalation). To shed light on the underlying mechanisms through which appraisals influence task-level escalation, we proposed and tested two mediating pathways based on goal orientation theory and prospect theory. In a laboratory experiment, we found that a relative appraisal led to greater task-level escalation as compared to an absolute appraisal. Proving goal orientation and avoiding goal orientation mediated this relationship. In addition, we found that a criticism-based appraisal led to greater task-level escalation as compared to a praise-based appraisal. Risk propensity and self-esteem mediated this relationship. Lastly, we found that the effects of both a relative appraisal and a criticism-based appraisal on task-level escalation were significantly different from a control group that did not involve any form of performance appraisal.

Prior research suggests that information technology (IT) project escalation can result from the deaf effect, a phenomenon in which decision makers fail to heed risk warnings communicated by others. Drawing inspiration from stewardship theory, we posited that when messengers carrying risk warnings about a project are seen as collaborative partners, decision makers are more likely to heed the message. Conversely, we theorized that when messengers are seen as opponents, decision makers are more likely to exhibit the deaf effect. We further posited that certain psychological factors (i.e., framing and perceived control) would moderate the effect of the messenger-recipient relationship on the deaf effect. To test these ideas, we conducted two experiments. When messengers were seen as collaborative partners, recipients assigned more relevance to the risk warning and perceived a higher risk, making them less willing to continue the project. Framing the outcomes associated with redirecting or continuing the project in terms of losses (rather than gains) weakened this effect. However, when recipients perceived a high degree of control over the project the effect was strengthened. Implications for both research and practice are discussed.

Safety critical systems can cause injury or death to people if they malfunction, and thus it is of vital importance for employees to report bugs in such systems. Based on the notions of moral intensity and morality judgment, we propose a model that explains employees' intentions to report bugs in safety critical systems. We conducted a conjoint experiment to test the model. Based on data from 173 software engineers, we found that morality judgment plays a key role in mediating the relationship between moral intensity and bad news reporting. Specifically, we found that two dimensions of moral intensity—magnitude of consequences and probability of effect—exert both direct and indirect effects on the willingness to report bad news. Further, we found that two other dimensions of moral intensity—temporal immediacy and proximity to victims—do not exert direct effects, but influence bad news reporting indirectly through morality judgment.

Managing information systems (IS) projects requires what we refer to as ‘control ambidexterity’, which is the use of different types of control to meet conflicting demands. This leads to the use of contrasting styles of IS project management and creates tensions in managerial practice, neither of which are well understood. We address this theoretical gap in our understanding based on an exploratory case study of an IS implementation project in the financial services industry. Adopting the lens of management styles as a meta-theoretical perspective, we sought to address two research questions: (1) Which management style(s) do IS project managers draw upon in practice and why? (2) What kinds of tensions result for IS project managers and team members from drawing upon contrasting management styles in combination – and how do IS project managers and team members deal with these tensions? Two contrasting styles of management emerged from our data – bureaucratic and collaborative – that are drawn upon by IS project managers to achieve control ambidexterity. Furthermore, drawing upon these two different styles in combination within the confines of a single project creates tensions. We explore these tensions and present an illustrative example of how IS project managers can deal with these tensions successfully in practice. Specifically, we find that they can be dealt with effectively by a tandem of two project managers who share responsibility for managing the IS project. The findings of this study have important implications for our understanding of control ambidexterity in IS projects.

Improving the management of information technology (IT) projects is of prime concern to both IS researchers and practitioners, as IT projects are notorious for poor process performance, frequently running over budget and behind schedule. Over the years, at least two separate streams of research have emerged with the aim of contributing to our understanding of IT project management. One of these focuses on the exercise of formal and informal controls, while another focuses on identifying and managing key risks such as those associated with requirements and users. Proponents of the control stream would argue that the exercise of formal and informal controls can improve process performance and there is some evidence that this is so. An obvious question that emerges, however, is how effective these controls are in the presence of particular risks. In this study, we seek to answer this question by developing and testing a research model that integrates these two streams of research. On the basis of data collected from 63 completed IT projects in China, we examine the moderating effects of requirements risk and user risk on the relationship between control (both formal and informal) and the process performance of IT projects. We contribute to the current state of knowledge by clearly demonstrating that both types of risk moderate the effects of formal and informal controls on performance. Specifically, both requirements risk and user risk were found to reduce the positive influence of controls on process performance, implying that implementing solid controls is a necessary, but not sufficient, condition to ensure good process performance.

With millions of online auctions per day, sites such as eBay have revolutionized how consumers buy and sell goods. Despite the benefits associated with online consumer-to-consumer (C2C) auctions, there can be drawbacks. Consumers who purchase goods in online auctions may get caught up in auction fever, causing them to engage in overbidding, and sometimes leading to what has been referred to as the winner's curse. While several theoretical explanations have been proposed to explain overbidding behavior (OB), there has been little empirical work in this area. Drawing on escalation theory, this study develops and tests a model of the OB exhibited by individuals in online auction settings. Our model posits that certain escalation drivers such as sunk cost (SC), the completion effect (CE), and self-justification affect an individual's willingness to continue bidding (WCB) which, in turn, influences OB. Survey data collected from 250 online auction participants were used to test the model using partial least squares analysis. SC and CE were found to have significant impacts on OB that were either partially or fully mediated by WCB. We also found that competition intensity moderates the relationship between willingness to continue and OB such that when competition is more intense, the relationship becomes even stronger. The implications of these findings for both research and practice are discussed.

With the ongoing challenge of successfully managing information technology (IT) projects, organizations are recognizing the need for greater project management discipline. For many organizations, this has meant ratcheting up project management skills, processes, and governance structures by implementing a project management office (PMO). While anecdotal evidence suggests that implementing a PMO can be quite difficult, few studies discuss the specific challenges involved, and how organizations can overcome them. To address this gap in existing knowledge, we conducted a Delphi study to (1) identify the challenges of implementing a PMO for managing IT projects, (2) rank these challenges in order of importance, (3) discover ways in which some organizations have overcome the top-ranked challenges, and (4) understand the role of PMO structure, metrics, and tools in the implementation of a PMO.We identified 34 unique challenges to implementing a PMO and refined this list to 13 challenges that our Delphi panelists considered most important. The top-three challenges were (1) rigid corporate culture and failure to manage organizational resistance to change, (2) lack of experienced project managers (PMs) and PMO leadership, and (3) lack of appropriate change management strategy. Through follow-up interviews with selected panelists, we identified a series of actions that can be taken to overcome these challenges including having a strong PMO champion, starting small and demonstrating the value of the PMO, obtaining support from opinion leaders, hiring an experienced program manager who understands the organization, bringing the most talented PMs into the PMO implementation team, adopting a flexible change management strategy, and standardizing processes prior to PMO implementation. The interviews were also used to better understand the role of PMO structure, metrics, and tools. In terms of PMO structure, we found that ‘light’ PMOs were more likely to be implemented successfully. Most organizations eschew formal metrics, instead relying on subjective indicators of PMO success. Lastly, it appears that PMO tools are difficult to implement unless a project management culture has been established.

While post mortem evaluation (PME) has long been advocated as a means of improving development practices by learning from IT project failures, few organizations conduct PMEs. The purpose of the study is to explain this discrepancy between theory and practice. This paper integrates findings from a Delphi study of what experienced practitioners perceive as the most important barriers to conducting PMEs with insights from organizational learning theory. The results suggest that there are critical tensions between development practices and learning contexts in many organizations, and adopting PMEs in these cases is likely to reinforce organizational learning dysfunctions rather than improve current development practices. Based on these findings, we argue that the PME literature has underestimated the limits to learning in most IT organizations and we propose to explore paradoxical thinking to help researchers frame continued inquiry into PME and to help managers overcome learning dysfunctions as they push for more widespread use of PMEs.