Understanding software project risk: a cluster analysis

  • Authors:

  • Linda Wallace;Mark Keil;Arun Rai

  • Affiliations:

  • Department of Accounting and Information Systems, Virginia Polytechnic Institute and State University, Blacksburg, VA;Department of Computer Information Systems, J. Mack Robinson College of Business, Georgia State University, Atlanta, GA;Electronic Commerce Institute, J. Mack Robinson College of Business, Georgia State University, Atlanta, GA

  • Venue:
  • Information and Management
  • Year:
  • 2004

Quantified Score

Hi-index 0.01

Visualization

Abstract

Understanding software project risk can help in reducing the incidence of failure. Building on prior work, software project risk was conceptualized along six dimensions. A questionnaire was built and 507 software project managers were surveyed. A cluster analysis was then performed to identify aspects of low, medium, and high risk projects. An examination of risk dimensions across the levels revealed that even low risk projects have a high level of complexity risk. For high risk projects, the risks associated with requirements, planning and control, and the organization become more obvious. The influence of project scope, sourcing practices, and strategic orientation on project risk dimensions was also examined. Results suggested that project scope affects all dimensions of risk, whereas sourcing practices and strategic orientation had a more limited impact. A conceptual model of project risk and performance was presented.