Investigating the Relationship between IS Project Risk and Project Performance

In the digital economy, IS projects play an increasingly important role for creating value and organizations have grown more heavily dependant on IS to help them solve problems and overcome challenges. However, lots of IS projects end in failure. The failed projects waste businesses millions of dollars every year and often prevent key business objectives from being met. Failing to identify and manage project risk is often regarded as a critical problem of IS project management. The objective of this study was to explore the relationship between project risk and project performance. A survey was conducted to the corporate IS managers and professionals in Taiwan. From the responses of 196 respondents, the analysis confirmed that project risk had a significantly negative impact on project performance. The results of this study can provide IS project managers with insights on how project risk factors may affect project performance.