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Chapter 4 &5 Sep 20
Chapter 4 &5 Sep 20
4.1 Introduction
The general objective of this research was to analyze the factors that affect the
successful implementation of information technology projects by commercial banks in
Ethiopia. This was guided by the specific objectives which were to examine the
influence of project procurement management, project scope management, project
management methodology and executive/top management commitment on
implementation of information technology projects and also establish the moderating
effect of project risk on the factors of implementation of information technology projects
by commercial banks in Ethiopia. This chapter outlines the response rate, assesses the
reliability and validity of the research instrument, it indicates the demographics of the
respondents, it details both descriptive and inferential statistics and also shows the
research findings and discussions.
The researcher distributed two hundred and five (205) questionnaires out of which one
hundred and ninety (190) were filled which represented 92% of the total questionnaires
distributed. According to Kothari (2014), 50% response rate is considered average, 60%
to 70% is considered adequate while anything above 70% is considered to be an
excellent response rate. Bell (2014) indicated that for a social science study, anything
above 60% response rate is adequate for making significant conclusions. Attaining 92%
was therefore an excellent response rate which could be attributed to the data collection
procedure employed whereby the researcher personally administered the questionnaires
through drop and pick method and made follow up calls to clarify on any queries as well
as to prompt the respondents to fill the questionnaires. The personal involvement of the
researcher therefore contributed to the high response rate.
Fig 4. 1: Response Rate
Source: SPSS output of the survey, 2021
Table 4.2 indicates that majority of the respondents were aged between 20 and 30 years
constituting 41.6% of total respondents. Respondents between 30 and 40 years
constituting 26.8%. Respondents between 40 and 50 years constituting 18.9% of total
respondents whereas those above 50 years constituted 12.6%. The statistics are a
confirmation that majority of bank workers are youthful with those above 50 years being
continually eased out either by natural attrition or by being incentivized to take
voluntary early retirement. Younger staff are perceived to have better technical
competencies and pursue change initiatives that come with implementation of new IT
projects (Kwahk & Kim, 2008).
Frequency 79 51 36 24 190
NO of Alpha
No Variable
Items Value
1 PPM 9 .827 Very good
2 9 .805 Very good
PSM
3 PMM 9 .787 Good
4 EC 8 .901 Excellent
5 PR 6 .814 Very good
6 ITPI 9 .914 Excellent
Total Cronbach's alpha 50 .899 Very good
Table 3 4: Reliability Statistics/Cronbach's Alpha
Source: Respondents Survey Test Result, 2021.
4.3.2 Validity
Validity is the degree to which the results obtained from the analysis of the data actually
represents the phenomenon under study (Mugenda et al., 2012). Face validity was
carried out through relevant literature review and peer review, which included use of
accepted methods and standards that were adopted in other relevant studies. To ensure
content and construct validity, the preliminary questionnaire was pre-tested with a
sample of respondents drawn from the relevant cadres of staff who were well versed
with information technology projects, but who would eventually not be part of the
sample. Also, survey items were extracted from existing project management theory and
use of tested instruments where available. A 95% response rate was realized in the pilot
data collection and feedback received was incorporated in the final questionnaire hence
improving it and was found to be adequate for final data collection.
4.4 Descriptive Statistics
The purpose of this study was to analyze the factors of implementation of information
technology projects by commercial banks in Ethiopia. This section tries to assess the
relationship between each of the independent variables (project procurement
management, project scope management, project management methodology and
executive/top management commitment) to the dependent variable of implementation of
IT projects. Frequencies and descriptive statistics are presented first, followed by
qualitative analysis then inferential statistics. Questionnaire responses were based on a
Likert scale which was aptly coded with numerical values for ease of data analysis. The
values assigned were 1 = strongly disagree, 2 = disagree, 3 = neither agree nor disagree,
4 = agree, then 5 = strongly agree.
4.4.1 Project procurement management and Implementation of IT projects
Procurement management is a way to more efficiently and productively handle the
process of sourcing, requisitioning, ordering, expediting, inspecting and reconciliating of
procurement for successful implementation of projects. Project procurement
management is one of the factors that expected to be a major factor to examine the
implementation of IT projects. Nine statements were presented for respondents to rate
them on a Likert scale. The following table presents the responses in each statement and
the average reaction of respondents in all of the statements. The average result is found
by computing the responses in each statement.
Strongly
disagree
Deviatio
Neutral
Agree
Agree
Mean
St.
N
Statements
n
N
1.1 The procedure for obtaining the goods or services 2.878 1.1823
20 73 19 66 12 9 6 190
required is well defined. %
10.5 38.4 10 34.7 6.3
2.894 1.1498
1.2 In the procurement policy, there is a well-defined N 17 76 16 72 9 190
7 7
formal evaluation review process. %
8.9 40 8.4 37.9 4.7
1.3 Payment to the supplier is made once the contract's N 2.942 1.1463
17 68 25 69 11 1 4 190
payment criteria have been met and the work has
progressed. % 8.9 35.8 13.2 36.3 5.8
1.4 Inspection and audit are performed to ensure that 2.868 1.0533
N 10 79 37 54 10 4 7 190
the seller's work processes or deliverables are in
conformity. % 5.3 41.6 19.5 28.4 5.3
1.5 For project procurements, a procurement strategy 2.852 1.1218
N 17 76 23 66 8 6 7 190
is produced that specifies what will be procured, the
specifications required, and the acquisition timeframe. % 8.9 40 12.1 34.7 4.2
1.6 The make or buy analysis is used to decide if a 2.842 1.0965
N 16 76 27 64 7 1 6 190
project's work should be completed by the project
team or purchased from a third party. % 8.4 40 14.2 33.7 3.7
2.821 1.1994
1.7 Market research is conducted and used to inform N 29 60 26 66 9 1 6 190
procurement decisions. % 15.3 31.6 13.7 34.7 4.7
1.8 By mutual consent and negotiation, the buyer and 3.063 1.0965
N 17 47 43 73 10 2 1 190
seller can alter the procurement contract at any
moment. % 8.9 24.7 22.6 38.4 5.3
2.778 1.1332
1.9 A uniform procurement contract close-out process N 31 51 40 65 3 9 3 190
is used on all projects. % 16.3 26.8 21.1 34.2 1.6
* Source: SPSS output of the survey, 2021
As we can see from table 4.7, all of the respondents were disagreeing responses for the
nine different questions in relation to project procurement management. The respondents
were asked about the procedure for obtaining the goods or services required is well defined to
implement the projects 38.4% of the respondents with the mean average result of 2.8
were disagree, when asked in the procurement policy, there is a well-defined formal
evaluation review process 40% of the respondents with the mean average result of 2.9 were
disagree, when asked Payment to the supplier is made once the contract's
payment criteria have been met and the work has progressed, 36.3% of the respondents
with the mean average result of 2.94 were agree, when asked inspection and audit are
performed to ensure that the seller's work processes or deliverables are in conformity
41.6% of the respondents with the mean average result of 2.86 were disagree, when
asked for project procurements, a procurement strategy is produced that specifies what
will be procured, the specifications required, and the acquisition timeframe 40% of the
respondents with the mean average result of 2.85 were disagree, when asked the make or
buy analysis is used to decide if a project's work should be completed by the project
team or purchased from a third party 40% of the respondents with the mean average
result of 2.84 were disagree, when asked market research is conducted and used to
inform procurement decisions, 34.7% of the respondents with the mean average result of
2.82 were agree, when asked by mutual consent and negotiation, the buyer and seller can
alter the procurement contract at any moment, 38.4% of the respondents with the mean
average result of 3.06 were agree, when finally the respondent asked that a uniform
procurement contract close-out process is used on all projects 34.2% of the respondents
with the mean average result of 2.86 agree. Even though the project procurement
management is important in implementation of IT projects, the average responses of the
respondent show disagree level of agreement, this implies that the majority of the
respondent indifference on project procurement management. This means that the
selected commercial banks are facing project procurement challenges during
implementation process. Thus, the selected commercial banks should pay more attention
to project procurement management in order to realize the benefits after the
implementation of the IT project.
4.4.2 Project scope management and Implementation of IT projects
Project scope management is a process that helps in determining and documenting the
list of all the project goals, tasks, deliverables, deadlines, and budgets as a part of the
planning process. The same way as it is done to project scope management nine
statements that can measure project management issues were posed to the respondents.
Almost all statements provided to each respondent being responded as a disagree level of
agreement, but it was expected that this variable as being a major factor in examining the
implementation of IT projects. The results of the respondents’ responses were compiled
and presented in the following table. The table presents the responses in each statement
and the average reaction of respondents in all of the statements.
Table 4. 8 Responses Related to Project scope management
Disagree
Strongly
Strongly
disagree
Deviatio
Neutral
Agree
Agree
Mean
St.
N
Statements
n
N
The respondents were asked about if there were tools and procedures for establishing
scope that were well-defined 42.6% of the respondents with the mean average result
of 2.89 were disagree, when asked if the objectives are set in accordance with the
customer's requirements 38.9% of the respondents with the mean average result of
2.74 were disagree, when asked in order to manage scope, the necessary tools and
procedures were used 37.9% of the respondents with the mean average result of 2.80
were disagree, when asked if the projects were managed using the typical project
management process of initiating, planning, executing, monitoring, and evaluating and
closing 40.5% of the respondents with the mean average result of 2.97 were agree,
when asked if Stakeholder conflict over scope was avoided using several ways 35.3% of
the respondents with the mean average result of 2.60 were disagree, when asked if
the primary operations that must be completed and the intended end result are clearly
specified 37.4% of the respondents with the mean average result of 2.88 were
disagree, when asked if the project had clear goals 36.2% of the respondents with the
mean average result of 2.78 were disagree, when asked if there is a custom of
confronting difficulties with a skewed scope 38.9% of the respondents with the mean
average result of 3.05 were agree when finally the respondent asked that the
PMBOK and CPM were used in this project 40.5% of the respondents with the mean
average result of 2.65 disagree. Even though the execution of project scope
management was important in implementation of IT projects, the average
responses of the respondents were disagreed level of agreement, this implies that
majority of the respondent’s indifference with project scope management. Thus,
the selected banks should pay more attention to project PSM in order to realize the
benefits after the implementation of the IT projects.
Disagree
Strongly
Strongly
disagree
Deviatio
Neutral
Agree
Agree
Mean
St.
N
Statements
n
N
As we can see from table 4.3, the respondents were asked about when it comes to project
implementation, the bank frequently uses project management technique , 33.2% disagreed,
when asked if the bank employs a project management technique that it created in-house
38.9% disagreed, when asked if the bank uses a defined project management technique to
tackle projects, 41.1% disagreed, when asked if the bank employs a bespoke project
management technique at all times, 35.3 disagreed, when asked if Processes were linked with
agile project management approach are always embraced by the bank , 37.4 % disagreed,
when asked if throughout the lifecycle of a project, the bank uses agile project management
technique, 41.1% disagreed, when asked if in most cases, the bank follows a well-documented
traditional project management technique, 34.7% agreed, when asked if project managers are
expected to adapt the project management approach to the unique characteristics of each project
and the surrounding environment 31.6% agreed, when finally the respondent were asked
the tools and approaches advocated in your bank's IT strategic emphasis are employed to
complete IT initiatives 38.9% disagreed. From the response, a number of respondents
seemed unsure of the project management methodologies used in their respective banks
since there are many methodologies and the respondents were not in a position to
comfortably delineate the particular methodologies that were in use.
Strongly
disagree
Deviatio
Neutral
Agree
Agree
Mean
St.
N
Statements
n
N
The respondents were asked if upper-level management of the bank routinely backs projects and
provides resources, 37.4% of the respondents with the mean average result of 2.66 were disagree,
when asked when it comes to participation in industry regulator efforts, the bank has a flexible
corporate culture 38.4% of the respondents with the mean average result of 2.71 were disagree,
when asked when new projects need to be implemented, the bank always welcomes change
management 36.8% of the respondents with the mean average result of 2.6 were disagree, when
asked the executive management of the organization creates policies and processes to monitor
project implementation 38.9% of the respondents with the mean average result of 2.61 disagree,
when asked the bank's planning, monitoring, and controlling methods have consistently ensured
project efficiency and effectiveness 38.4% of the respondents with the mean average result of
2.68 were disagree, when asked the bank's leadership has a reputation for being willing to take
calculated risks while implementing projects 42.1% of the respondents with the mean average
result of 2.58 were disagree, when asked for projects, the bank regularly provides a defined
vision, goal, and objectives 42.6% of the respondents with the mean average result of 2.7 were
disagree when finally the respondent asked that the team members are rewarded by the executive
management 38.6% of the respondents with the mean average result of 2.5 were disagree. Even
though the executive commitment is important in implementation of IT projects, the average
responses of the respondent show disagreed level of agreement, this implies that the majority of
the respondent indifference on top executive commitment. This means that the executive
management has not played an instrumental role in the implementation process. Thus, the
organization should pay more attention to executive commitment in order to realize the benefits
after the implementation of IT projects.
Disagree
Strongly
Strongly
disagree
Deviatio
Neutral
Agree
Agree
Mean
St.
N
Statements
n
N
Among the questions posed to the respondents on the subsets of project risk was whether
technical complexity of IT projects had a marked effect on their implementation and
54.2% representing 103 out of 190 respondents agreed. This question returned a mean
score of 3.47. 57.4% representing 109 out of 190 agreed on relative project size has a
significant impact on project implementation. This question returned a mean score of
3.52. 60.5% representing 115 out of 190 agreed on the urgency with which a project
must be completed has a significant impact on project implementation. This question
returned a mean score of 3.48. 54.2% representing 103 out of 190 agreed on the degree
to which a project is vital has a significant impact on its execution. This question
returned a mean score of 3.38. 61.6 % representing 117 out of 19 agreed on the project
implementation is frequently hampered by specification revisions. This question
returned a mean score of 3.45. 61.1% representing 117 out of 190 agreed on the project
implementation is frequently hampered by technological uncertainty. This question
returned a mean score of 3.43.
4.4.6 Summary of survey results for the dependent variable
Nine statements were presented to respondents to look at different issues that can
measure the dependent variable (implementation of IT projects). The following
table summarizes the views of respondents with regard to implementation of IT
projects.
Table 4. 8 Responses Related to Implementation of IT projects
Disagree
Strongly
Strongly
disagree
Deviatio
Neutral
Agree
Agree
Mean
St.
N
Statements
n
N
6.1 The bank’s IT initiatives are completed on 2.636 1.2126
37 66 25 53 19 8 8 190
schedule and within the budget. %
19.5 34.7 13.2 27.9 4.9
6.2 The projects were finished on time and on N 2.142 1.2066
67 77 9 13.5 5.8 1 0 190
budget. %
35.3 40.5 4.7 27.9 4.2
2.426 1.3342
6.3 The projects were finished on schedule and under N 56 70 7 41 16 3 6 190
budget. % 29.5 36.8 3.7 21.6 8.4
2.610 1.3116
6.4 The bank's project deployment yielded the N 43 72 4 58 13 5 9 190
anticipated commercial benefits. % 22.6 37.9 2.1 30.5 6.8
2.868 1.2842
6.5 During the project life cycle, the scope and goals N 29 67 10 68 16 4 4 190
of the project are not changed needlessly. % 15.3 35.3 5.3 35.8 8.4
2.584 1.1687
6.6 Project deliverables usually satisfy key N 33 78 22 49 8 2 1 190
stakeholders in the bank. % 17.4 41.1 11.6 25.8 4.2
2.421 1.1229
6.7 The bank anticipated the project to meet all of its N 39 86 14 48 3 1 1 190
quality criteria, which it did % 20.5 45.3 7.4 25.3 1.6
2.505 1.1397
6.8 The initiatives were done in a way that will help N 34 85 18 47 6 3 0 190
them achieve their intended aim % 17.9 44.7 9.5 24.7 3.2
2.142 1.1664
6.9 The initiatives' planned objectives were met with N 64 79 12 26 9 1 7 190
great success. % 33.7 41.6 6.3 13.7 4.7
* Source: SPSS output of the survey, 2021
As Table 4.8 shows the majority of the respondents were unsatisfied with questions
related to implementation of IT projects. When the respondent asked that the bank’s IT
initiatives are completed on schedule and within the budget 34.7% with an average
mean of 2.63 were in disagreed level, when asked the projects were finished on time
and on budget,35.3% of the respondent with an average mean of 2.14 were in
agreement level of strongly disagree, when asked the projects were finished on schedule
and under budget 36.8% the respondent with an average mean of 2.42 were in
agreement level of disagree, when asked the bank's project deployment yielded the
anticipated commercial benefits 37.9% and 22.6% of the respondent with an average mean
of 2.61 were in agreement level of disagree and strongly disagree respectively , when
asked during the project life cycle, the scope and goals of the project are not changed
needlessly 35.8% of the respondent with an average mean of 2.86 were in agreement
level of agree, when asked if project deliverables usually satisfy key stakeholders in the
bank 41.1% of the respondents with an average mean of 2.58 were in agreement level
of disagree , when asked the bank anticipated the project to meet all of its quality
criteria, which it did 45.3% of the respondents with an average mean of 2.42 were in
agreement level of disagreement, when asked if the initiatives were done in a way that
will help them achieve their intended aim 44.7 of the respondents with an average
mean of 2.50 were in agreement level of disagreement, when finally asked if the
initiatives' planned objectives were met with great success 41.6% of the respondents
with an average mean of 2.14 were in agreement level of disagree. From the responses,
it can be seen that the respondent disagreed that the overall implementation of IT
projects was successful and effectively implemented. From all response we can
conclude that majority of the respondent believe the IT projects are facing problems
during implementation. Thus, the selected commercial banks should pay more attention
to the project in order to realize the benefits after the implementation of the project.
4.2.9. Summary of frequency results of each variable and Mean Score for
dependent and independent variables
As it is known, the mean value or score of a certain set of data is equal to the sum of all
the values in the data set divided by the total number of values. In this context, the
mean of the response and score of all statements for each independent variables and
dependent variable is calculated and the meaning of the score is interpreted accordingly.
Ranked on scale: (Strongly Disagree = 0 – 1.8; Disagree = 1.8 – 2.6; Neutral = 2.6 – 3.4;
Agree = 3.4 – 4.2; Strongly Agree = 4.2 – 5.0). Source; (MacEachern, 1982)
Based on the Likert scale “3" means “neither agree nor disagree, while value “4” means
“agree”, etc. Here in criterion-referenced scale, if value of 3 is recorded as any of the
subsequent measurement, it means that level is neither high nor low, or in other words, it
is in “average or medium level”. If a value of (4) is obtained, it means s “high” level.
Similarly, value one (1) and five (5) mean “very low” level and “very high” level
respectively while value two (2) means “low” level.
Table 4. 11: Mean score result summary according to Criterion–referenced scale
Degree/level of
agreement N N N N A N
Description M M M M H M
Based on criterion- referred definitions of Table 4.10, the mean of PPM, PSM PMM and
EC, shown as medium, this implies that the response for those individual question to
those independent variables were neutral level of agreement. Respondents’ opinion on
project risk shown as high; this implies that the response for individual questions to this
independent variable was respond to an agreed level and those respondents have high
scored relative to this moderator variable.
This study employed both qualitative and quantitative means in obtaining data. Arising
from the concept of triangulation, data was obtained from respondents through open and
closed ended questions. Methodological triangulation entails combining both
quantitative and qualitative data collection methods (Creswell & Creswell, 2017), based
on the rationale that a single data collection method is insufficient to provide adequate
and accurate research results. A wide array of open-ended questions related to the study
objectives were included in the questionnaire and content analysis done by use of SPSS
version 25.
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Collinearity
Statistics
Model Tolerance VIF
1 (Constant)
and Project Sig. (2-tailed) .000 .000 .000 .000 .000 .000
control N 190 190 190 190 190 190 190
capability
Implementati Pearson .512** .429** .563** .665* .197** .643** .677** 1
on of IT Correlation *
projects Sig. (2-tailed) .000 .000 .000 .000 .007 .000 .000
N 190 190 190 190 190 190 190
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
The findings showed that implementation of IT projects had a high correlation with cost
estimating and budgeting (r = .633, p-value < 0.001). That meant that a positive change
in cost estimating and budgeting resulted in effective implementation of IT projects.
Also, commercial banks that focused on executive commitment in projects recorded
improved effectiveness in implementation of IT projects as indicated by a significant
correlation value (r = .516, p-value < 0.001). The study findings also showed that
implementation of IT projects and adoption of project management and control had a
relatively significant relationship (r = .491, p-value < 0.001). It showed that banks that
embraced project management and control achieved effective implementation of IT
projects.
Project risk being the moderating variable also showed a weak positive correlation with
implementation of IT projects (r = .205, p-value <0.001). The p-values for project risk
were above the criteria of α < 0.05 and therefore they were not statistically significant.
Since all variables returned a positive correlation as shown in Table 4.12, they were
therefore subjected to further regression analysis to determine their individual
contributions.
4.6 Regression Analysis Results
The researcher used multiple regression analysis to determine the linear statistical
relationship between the independent, moderating and dependent variables of the study.
The null hypotheses of the study were tested using linear regression models. F- test was
2
used to test the validity of the model while (r ) was used to measure the model’s
goodness of fit. The regression coefficient was used to describe the results of regression
analysis and outline the nature and intensity of the relationships between the study
variables.
4.6.1 Influence of project procurement management on Implementation of IT
projects
To find out the influence of project procurement management (X 1) on implementation of
IT projects (Y), a regression model was fitted to the data and it was found to be
statistically significant (F (1, 136) = 3.038, p = .084). The co-efficient of determination
2
(R ) of .022 was an indicator that executive commitment explained a paltry 2.2%
2
variation in improvement of implementation of IT projects. The adjusted R explained
1.5% variation while the remainder could be explained by other factors not included in
the model. R value of .148 indicated a weak positive correlation between executive
commitment and implementation of IT projects.
The hypothesis to be tested was H01: Executive commitment has no significant influence
on implementation of IT projects by commercial banks in Kenya.
The survey results showed that there was a weak positive relationship between executive
commitment and implementation of IT projects by commercial banks in Kenya (β1=
.121, t = 1.743, p-value = .084). The regression model fitted to test the relationship was;
Y = β0 + β1X1 + ε; where;
ε = Error term