Recovering Troubled IT Projects: The Roles of Transformational Leadership and Project Complexity

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Recovering Troubled IT Projects: The Roles of Transformational Leadership and Project Complexity Hui Lei 1 & Xiang Fang 2

&

T. M. Rajkumar 2 & Clyde Holsapple 3

Accepted: 24 September 2020 # Springer Science+Business Media, LLC, part of Springer Nature 2020

Abstract Recovery of troubled IT projects is a vital issue for many organizations. Understanding how leadership and project complexity affect a recovery process could enable organizations to do a better job in recovering troubled projects. A few studies have examined the relationship between leadership and project management. However, the recovery process and project complexity have not been integrated into the relationship between leadership and project recovery. Change leadership, leadership effectiveness, and project complexity are empirically determined to be positively associated with the recovery process based on quantitative data collected from 166 IT project team members. Leadership effectiveness is the variable that impacts the recovery process the most. And, the recovery process significantly affects product success and process success of troubled projects. The findings imply that organizations should focus more on leadership effectiveness to improve recovery processes. To facilitate the process and product success of a project recovery, organizations should rely on a recovery process that includes multiple optional remedies. Keywords Troubled IT project . Transformational leadership . Leadership effectiveness . Change leadership . Recovery process . Project complexity . Process success . And product success

1 Introduction Successful information technology (IT) projects provide immense value to organizations. However, by nature, IT projects Electronic supplementary material The online version of this article (https://doi.org/10.1007/s10796-020-10068-7) contains supplementary material, which is available to authorized users. * Xiang Fang [email protected] Hui Lei [email protected] T. M. Rajkumar [email protected] Clyde Holsapple [email protected] 1

College of Business Administration, Hunan University, Changsha 410082, Hunan Province, China

2

ISA Department, Farmer School of Business Administration, Miami University, Oxford, OH 45056, USA

3

Finance and Quantitative Analysis Department, Gatton College of Business & Economics, University of Kentucky, Lexington, KY 40506-0034, USA

are complex, risky, and uncertain. Therefore, numerous Information Systems (IS) implementation failures are reported (Alami 2016; Dwivedi et al. 2015), and/or projects have not been completed according to plan, which resulted in huge costs for those involved and for project sponsors (Clarke 2012). IT projects that do not necessarily fail but, rather, struggle to be successful, such as those running over budget, falling behind schedule, or missing critical functional requirements, are classified as troubled projects (Janssen et al. 2015). In early work, the following measures have been used as indicative of troubled IT projects: (1) being over schedule by 30%, and/o