INDUSTRY AND PRACTICE: Another Look at On Time and Within Budget: An Agency Theory Explanation

INDUSTRY AND PRACTICE: Another Look at On Time and Within Budget: An Agency Theory Explanation

Robert C. Mahaney (University of Kentucky, USA) and Albert L. Lederer (University of Kentucky, USA)
Copyright: © 1999 |Pages: 2
DOI: 10.4018/jdm.1999070104
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Abstract

Over the years, IT projects have gained the reputation for being completed late and beyond budget. Project managers, consultants, academic researchers, and others have suggested reasons. Perhaps IT projects grow uncontrollably beyond their initial scope. Maybe cost estimators simply underestimate their complexity. We’ve been thinking about cost and target overruns. We propose another explanation. It uses agency theory to account for the problems. Our argument is thus that IT researchers should test agency in the context of IT projects.

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