Risk Management and Performance of Information Technology Projects by Commercial Banks In Kenya

A Thesis Submitted in Partial Fulfilment of the Requirements for the Award of the Degree of Doctor of Philosophy in Business (Project Management) of Kenyatta University, June, 2022 ; Undertaking an information technology project in a banking environment is a complex task. Studies globally and locally indicate a problem of high failure rate of information technology projects. Standish group report 2019 states that 83.9 percent of information technology projects partially or completely fail. Majority of the projects, 52 percent were over budget, overdue, or lacked promised functionality. Previous studies indicate information technology projects by commercial Banks in Kenya experience the same project performance variations, as projects are either delayed, over budget or have issues with functionality. Risk is a factor that challenges project performance. Project risk management includes risk identification, analysis, response, and monitoring and control of risk in a project. The goal of project risk management is to reduce the likelihood and/or severity of unfavourable risks. The overall goal of this study was to examine the relationship between risk management and performance of information technology project by commercial banks in Kenya, taking into account the moderating effect of project complexity and the mediating effect of risk culture, both of which had been largely overlooked in previous research hence filling a research vacuum. Unit of analysis was thirty six selected IT projects. Questionnaires were used to collect the data from the targeted one hundred and eight respondents. The instrument was tested for reliability by use of Cronbach’s alpha coefficient of internal consistency test and validity by use of selected information technology project professionals’ review. Based on a survey, the research used both descriptive and explanatory research designs. The influence of risk management on performance of information technology projects by commercial banks in Kenya was analyzed using multiple regression ...