Investigating the Interactive Effect of Control in Information Systems Development Projects

The choice of control mechanisms in information systems development projects has been extensively studied in prior research. However the impact of control on project performance and the dynamics of formal and informal controls remain under explored. This study addresses these issues using data from 158 project managers. The results reveal an interesting pattern: formal controls have direct effect on project performance, informal controls do not, yet informal controls augment the impact of formal controls on project performance. Higher levels of knowledge of ISD process have been found to influence the choice control mechanisms. Nevertheless, how it affects the efficacy of controls on performance has not been examined. This research shows that higher levels of knowledge of ISD process have a direct impact on project performance. More interestingly, higher levels of knowledge of ISD process was found to improve the effectiveness of informal controls on project performance.