| The failure rate of information systems (IS) development projects remains alarmingly high. Studies indicate that as few as 16% of IS projects are completed on time and within budget. Many factors have been identified as causes of project failure. One such cause is poor project management. Specifically, poor monitoring and control by the project manager and lack of incentives for developers may contribute to project failure.; Agency theory offers a potential explanation for project failure. Agency theory suggests that appropriate monitoring and control will increase the likelihood of project success. It further suggests that appropriate incentives will help. A survey instrument was developed using content analysis of notes taken during twelve structured interviews. The survey instrument was used to collect data from IS project managers. The survey data were analyzed for reliability and validity. The data were used to test eight hypotheses derived from agency theory, and related to IS project success. Regression analysis was used to test those hypotheses.; The study contributes to the understanding of information systems project management by showing that contract type, monitoring, goal conflict, moral hazard, adverse selection, and task programmability are multi-dimensional constructs. It further contributes by identifying their dimensions and providing an instrument for their measurement in future research. It validates an instrument for measuring project success. It provides support for expectations that more outcome-based contracts, more monitoring, less shirking, and less misrepresentation of privately held information lead to project success. Finally, it contributes by contradicting expectations that more goal conflict and more task programmability lead to more outcome-based contracts and that more outcome-based contracts lead to less monitoring. These findings should help IS project managers better manage projects. |
