Success Factors in Management of IT Service Projects: Regression, Confirmatory Factor Analysis, and Structural Equation Models

Abstract

Although there have been some studies on the success factors for IT software projects, there is still a lack of coherent research on the success factors for IT service projects. Therefore, this study aimed to identify and understand the factors and their relationships that contribute to the success of IT service projects. For this purpose, multivariate regressions and structural equation models (SEMs) were developed and analyzed. The regression models included six project management success criteria used as dependent variables (quality of the delivered product, scope realization and requirements, timeliness of delivery, delivery within budget, customer satisfaction, and provider satisfaction) and four independent variables (agile techniques and change management, organization and people, stakeholders and risk analysis, work environment), which had been identified through exploratory factor analysis. The results showed that not all success factors were relevant to all success criteria, and there were differences in their importance. An additional series of exploratory and confirmatory factor analyses along with appropriate statistical measures were employed to evaluate the quality of these four factors. The SEM approach was based on five latent constructs with a total of twenty components. The study suggests that investing in improving people’s knowledge and skills, using agile methodologies, creating a supportive work environment, and involving stakeholders in regular risk analysis are important for project management success. The results also suggest that the success factors for IT service projects depend on both traditional and agile approaches. The study extensively compared its findings with similar research and discussed common issues and differences in both the model structures and methodologies applied. The investigation utilized mathematical methods and techniques that are not commonly applied in the field of project management success modeling. The comprehensive methodology that was applied may be helpful to other researchers who are interested in this topic.