The effect of uncertainty and structure on software project performance: theory testing and development
Sarma R. Nidumolu · 1991
The effect of uncertainty and structure on the performance of software development projects was studied using a structural contingency perspective. According to the prevalent research viewpoint, the interaction of structure and uncertainty has a significant effect on project performance. Six dimensions of project structure were identified from the literature and corresponding interaction hypotheses derived. The hypotheses were tested on a sample of sixty four software development projects, information for which was collected through a questionnaire survey. None of the hypotheses was supported by the data. An alternative approach to studying the performance effects of uncertainty and structure was then developed, based on field interviews with project managers and a review of recent Information Systems research. This approach, labeled the risk management perspective, emphasizes the role of structure in controlling the economic risks in a project. The hypotheses derived from this perspective received considerable support from the survey data. The perspective provides an understanding of the process of software development because it helps clarify management's ability to reduce risks over the course of the project. Overall, the risk management perspective opens up a promising area of research concerning project management.