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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%
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
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
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
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.
Strongly
disagree
Deviatio
Neutral
Agree
Agree
Mean
St.
N
Statements
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.
Disagree
Strongly
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.