CHAPTER FOUR

RESEARCH FINDINGS AND DISCUSSION

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.
 Questionnaires Proportion

Unreturned
Questionnaire

Filed and
Returned
8% Questionnaire

92%

Fig 4. 1: Response Rate

Source: SPSS output of the survey, 2021

4.2. Demographics Information

4.2.1 Gender distribution

The descriptive statistics of the study indicated that 130 respondents were male
representing 68.4% while 60 respondents were female representing 31.6%. This is an
indication that the study involves more males. However, since both genders are
represented in the sample, the study will not suffer from gender biases. This implies that
more women are now emerging as user support staff and liaison officers with technical
skills necessary for effective implementation of IT projects (Eason, 2014).
The gender distribution is shown in Table 4.1;

Gender Frequency Percentage

Male 130 68.4

Female 60 31.6

Total 190 100

Table 4.1: Gender of respondents

Source: SPSS output of the survey,2021
4.2.3 Age distribution

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).

Age 20-30 31-40 41-50 Above 50 Total

Frequency 79 51 36 24 190
Fig 4.2: Gender of the respondents
Percentage
Source: SPSS output41.6 28.6
of the survey,2021 18.9 12.6 100
 Table 4.2: Distribution of age in years
Source: SPSS output of the survey,2021

4.1.3 Education Level of the Respondents

As shown by Table 4.3, from the research findings, majority of the respondents (58.4%)
hold bachelor’s degree, certificate level with 0.5%, whereas 41.1% of the respondents
indicated their level of education as masters and above. This indicates that the
respondents were educated well enough to understand the questions and thus would give
credible results.

Education Frequency Percentage

Certificate 1 .5
Degree 111 58.4
Master 78 41.1
Total 190 100.0
Table 4.3: Educational level of the respondents
Source: SPSS output of the survey,2021
4.1.4. Employee’s Job Experience
As shown by Table 4.4, 40% have served the organization for 6 to 10 years, 24.7% of
the respondents indicated that they have served the company for less than five years,
25.8 % indicated to have served in the organization for eleven to fifteen years, 6.3 %
indicated to have served in the organization for sixteen to twenty years, whereas 3.2%
of the respondents indicated to have served for greater than twenty-one years. This
implies that the majority of the respondents in selected Ethiopian commercial banks,
had worked for a considerable period of time and therefore they were in a position to
give credible information relating to this study.
Experience Frequency Percent
≤5 47 24.7
6-10 76 40.0
11-15 49 25.8
16-20 12 6.3
21 and above 6 3.2
Total 190 100.0
Table 4.4: Employee’s job experience
 Source: SPSS output of the survey,2021
4.2.4 Respondent’s Department
Table 4.3 shows the functional positions held by the respondents in their respective
workplaces. There was a near even distribution of respondents amongst IT experts
(22.1%), procurement management teams (16.8%), business team (6.8%), finance team
(16.8%), project management office (11.6%), HR expert (9.5%) and R&D (16.3%). This
is due to their routine involvement in active implementation of IT projects unlike
Business Relationship Managers whose role was mostly interfacing IT and business
relationship management, advisory and user acceptance testing. The wide array of
participants constitutes a critical mass that understands the overall needs of their
institutions and can guide in achieving success of IT projects (Jain & Metkewar, 2016).

Department Frequency Percentage

IT 42 22.1
Procurement 32 16.8
management
Business 13 6.8
team
Finance 32 16.8
Project office 22 11.6
HR expert 18 9.5
R&D 31 16.3
Total 190 100.0
Table 4.5: Functional departments of the respondents
Source: SPSS output of the survey,2021

4.2.6. Respondent’s Position

As it can be seen from the Table 4.6, 38.5 % of the respondents are experts (staff),
19.2% of the respondents were officers, 11.5 % of the respondents were (chef officers,
Supervisors and domain experts) and 7.7% of the respondents were supervisors since
these are the peoples who actually involved in ERP project implementation, they are
expected to give the reality in the current status of ERP project. So, we can conclude
that the responses were worthwhile since all the relevant respondents are involved in
this study.
percentage
Position Frequency
pJunior officer 94 49.5
eSenior officer 21 11.1
rChief officer 13 6.8
VDirector 8 4.2
aManager 13 6.8
l Project 13 6.8
i manager
dstaff 28 14.7
Total 190 100.0

Table 4.5: Positions of the respondents

Source: SPSS output of the survey,2021

4.3 Reliability and Validity of the Research Instrument

4.3.1 Reliability Analysis

Cronbach’s coefficient alpha was used to determine the internal reliability of the
questionnaire employed in this study. The alpha values range between 0 and 1.0 whereby
while 1.0 indicates perfect reliability, the value 0.70 is deemed to be the lower level of
acceptability (Tavakol et al., 2014). The reliability values for each of the variables are
presented in Table 4.4 where it is evident that Cronbach’s alpha values for each of the
variables were well above the lower limit of acceptability of 0.70. The findings indicated
that executive commitment had a coefficient of 0.730, user involvement had a coefficient
of 0.777, project team capability had a coefficient of 0.717, project management
approach had a coefficient of 0.773, project risk had a coefficient of 0.707 and
implementation of information technology projects garnered a coefficient of 0.756.
These results therefore indicated that the questionnaire used in this study had a high level
of reliability.

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.

Table 4. 7 Responses Related to Project procurement management

Disagree
Strongly

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

2.1There were tools and procedures for establishing 2.894 1.1406

14 81 17 67 11 7 3 190
scope that were well-defined. %
7.4 42.6 8.9 35.3 5.8
N 2.747 1.1771
2.2 The objectives are set in accordance with the 26 74 21 60 9 190
4 0
customer's requirements. %
13.7 38.9 11.1 31.6 4.7
2.805 1.2210
2.3 In order to manage scope, the necessary tools and N 26 72 18 61 13 3 6 190
procedures were used. % 13.7 37.9 9.5 32.1 6.8
2.4 The projects were managed using the typical 2.978 1.2427
N 28 51 21 77 13 9 9 190
project management process of initiating, planning,
executing, monitoring, and evaluating and closing. % 14.7 26.8 11.1 40.5 6.8
2.600 1.1583
2.5 Stakeholder conflict over scope was avoided using N 35 67 35 45 8 0 6 190
several ways. % 18.4 35.3 18.4 23.7 4.2
2.889 1.1878
2.6 The primary operations that must be completed N 21 71 17 70 11 5 6 190
and the intended end result are clearly specified. % 11.1 37.4 8.9 36.8 5.8
2.789 1.1674
N 25 69 26 61 9 5 1 190
2.7 The project had clear goals % 13.2 36.2 13.7 32.1 4.7
3.052 1.2545
2.8 There is a custom of confronting difficulties with a N 29 40 30 74 17 6 7 190
skewed scope. % 15.3 21.1 15.8 38.9 8.9
2.9 The PMBOK (project management body of 2.657 1.0509
N 23 77 34 54 2 9 8 190
knowledge) and CPM (project management
methodology) were used in this project (critical path
method) % 12.1 40.5 17.9 28.4 1.1
* Source: SPSS output of the survey, 2021

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.

4.4.3 Project management methodology and Implementation of IT projects

Nine questions were presented to the respondents to assess their level of agreement
towards the project management methodology. The following table presents the
summarized result of the questions.
Table 4. 8 Responses Related to Project management methodology
Disagree
Strongly

Strongly
disagree

Deviatio
Neutral

Agree

Agree

Mean
St.

Statements N
n

3.1 When it comes to project implementation, the 2.847 1.2009

26 63 27 62 12 4 1 190
bank frequently uses project management technique. %
13.7 33.2 14.2 32.6 6.3
N 2.731 1.1205
3.2 The bank employs a project management 23 74 32 53 8 190
6 4
technique that it created in-house. %
12.1 38.9 16.8 27.9 4.2
2.621 1.0806
3.3 The bank uses a defined project management N 26 78 32 50 4 1 5 190
technique to tackle projects. % 13.7 41.1 16.8 26.3 2.1
3.4 The bank employs a bespoke project management N 24 67 36 55 8 2.768 1.1264 190
4 3
technique at all times. % 12.6 35.3 18.9 28.9 4.2
2.800 1.1647
3.5 Processes linked with agile project management N 24 71 22 65 8 0 4 190
approach are always embraced by the bank. % 12.6 37.4 11.6 34.2 4.2
2.584 1.1687
3.6 Throughout the lifecycle of a project, the bank N 33 78 22 49 8 2 1 190
uses agile project management technique. % 17.4 41.1 11.6 25.8 4.2
3.078 1.1814
3.7 In most cases, the bank follows a well-documented N 14 63 27 66 20 9 6 190
traditional project management technique. % 7.4 33.2 14.2 34.7 10.5
3.8 Project managers are expected to adapt the project 3.231 1.1859
N 13 48 40 60 29 6 2 190
management approach to the unique characteristics of
each project and the surrounding environment. % 6.8 25.3 22.1 31.6 15.3
2.615 1.3152
3.9 The tools and approaches advocated in your bank's N 41 74 9 49 17 8 6 190
IT strategic emphasis are employed to complete IT
initiatives % 21.6 38.9 4.7 25.8 8.9
* Source: SPSS output of the survey, 2021

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.

Table 4. 8 Responses Related to Executive/Top management commitment and

implementation of IT projects
For the aim of this research, the executive commitment refers to the provision of necessary
financial and other resources, establishing policies and procedures, delegating implementation
authority, taking risk and responsibilities during implementation of IT projects. The following
table presents the responses in each statement and the average reaction of respondents in all of
the statements.
Table 4. 8 Responses Related to Executive commitment

Disagree
Strongly

Strongly
disagree

Deviatio
Neutral

Agree

Agree

Mean
St.

N
Statements

n
N

4.1 Upper-level management of the bank routinely 2.663 1.2816

38 71 11 57 13 2 2 190
backs projects and provides resources. %
20 37.4 5.8 30 6.8
4.2 When it comes to participation in industry N 2.710 1.2663
34 73 9 62 12 5 3 190
regulator efforts, the bank has a flexible corporate
culture. %
17.9 38.4 4.7 32.6 6.3
2.600 1.2632
4.3 When new projects need to be implemented, the N 40 70 20 46 14 0 4 190
bank always welcomes change management. % 21.1 36.8 10.5 24.2 7.4
4.4 The executive management of the organization 2.610 1.1800
N 33 74 27 46 10 5 3 190
creates policies and processes to monitor project
implementation. % 17.4 38.9 14.2 24.2 5.3
4.5 The bank's planning, monitoring, and controlling 2.689 1.2358
N 32 73 21 50 14 5 8 190
methods have consistently ensured project efficiency
and effectiveness. % 16.8 38.4 11.1 26.3 7.4
4.6 The bank's leadership has a reputation for being 2.584 1.1178
N 29 80 29 45 7 2 0 190
willing to take calculated risks while implementing
projects. % 15.3 42.1 15.3 23.7 4.2
2.700 1.1076
4.7 For projects, the bank regularly provides a defined N 22 81 25 56 6 0 9 190
vision, goal, and objectives. % 11.6 42.6 13.2 29.5 3.2
2.500 1.2419
4.8 The team members are rewarded by the executive N 44 74 16 45 11 0 1 190
management. % 23.2 38.9 8.4 23.7 5.8
* Source: SPSS output of the survey, 2021
As we can see from table 4.1, all of the respondents were neutral responses for the seven different
questions in relation to top management support. The respondents were asked about the
organization top management has provided the necessary financial and other resources to design
and implement the ERP system 37.2% of the respondents with the mean average result of 3.10
were neither agree nor disagree, when asked the organization top management establishes
policies and procedures to monitor the implementation of the ERP system 30.8% of the
respondents with the mean average result of 2.95 were neither agreed nor disagree, when asked
the organization top management has delegated implementation authority for project managers.
42.3% of the respondents with the mean average result of 3.04 were agree, when asked the
organization top management has taken a self-motivated role in leading the ERP implementation
39.7% of the respondents with the mean average result of 2.86 were neither agreed nor disagree,
when asked the organization‟s top management has taken all the necessary risk and
responsibilities during ERP implementation. 41.0% of the respondents with the mean average
result of 3.06 were neither agree nor disagree, when asked the organization top management has
delegated implementation authority for project managers 41.0% of the respondents with the mean
average result of 3.04 were agree, when finally the respondent asked that the organization top
management always supports and encourages the use of the ERP system for job-related work
34.6% of the respondents with the mean average result of 2.86 were neither agreed nor disagree.
Even though the top management support is important in ERP implementation, the average
responses of the respondent shows neutral level of agreement, this implies that the majority of the
respondent indifference on top management support. This means that the top management has not
played an instrumental role in the implementation process. Thus the organization should pay
more attention to top management support in order to realize the benefits after the
implementation of the ERP project.