INFLUENCE OF PROJECT RISK MANAGEMENT PRACTICES ON PERFORMANCE OF TELECOMMUNICATION NETWORK MODERNISATION PROJECTS IN KENYA
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Keywords:
Project Risk Management Practices, Performance and Telecommunication Network Modernization ProjectsAbstract
Purpose: Telecommunication operators around the world continue to upgrade their network technologies to improve performance and increase capacity. Many of these firms are confronted with the challenge of ensuring successful implementation of these projects. The general objective of this study was to establish the influence of project risk management practices on performance of Telecommunication Network Modernization projects in Kenya.
Methodology: This study adopted a case study research design. The target population for the study was Network Modernization projects undertaken by Safaricom Plc in the past three years. The unit of observation were the Project Managers and Technical Team leaders who are responsible for the management of the selected Network modernization projects. A total of sixty Network modernization projects were selected. Total number of 60 respondents was reached, representing the entire population. Census was used in the study. Primary data was collected using semi-structured questionnaire based on the objectives of the study. The data was edited, coded for processing using the Statistical Package for Social Sciences (SPSS v.24) and presented in tabular and graphical format. A master codebook designed to ensure that all the questionnaires are coded uniformly was used. Consequently, data was edited for completeness and consistency before analysis. The study used multiple regression analysis and Analysis of Variance (ANOVA) to analyze the degree of relationship between the variables in the study at 5% level of significance.
Results: The study found that all the four aspects of risk management were practiced to a high extent. Regression analysis yielded relationships between performance of network modernization projects against project risk identification, project risk monitoring and project risk response. Though these relationships were weak, they were found to be statistically significant at the 5% significance level. Project risk analysis was found to have no relationship with performance of network modernization projects.
Unique contribution to Theory, Practice and Policy: The study recommended that telecommunication firms should pay great emphasis on the three aspects of risk management, namely project risk identification, project risk monitoring and project risk response. Further it was recommended that future studies should be done to establish other factors that influence performance of Telecomm Network Modernization projects.
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References
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Bannerman, P. L. (2008). Risk and risk management in software projects: A reassessment. The Journal of Systems and Software, 81(12), 2118-2133.
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Besner, C., Hobbs, B. (2006). The perceived value and potential contribution of project management practices to project success. Project Management Journal, 37(3), 37-48.
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Jun, G., Qiuzhen, R. & Qingguo, E. (2010). Effects of project risk planning on IT project performance focusing on a case of China vendor firms. Project Management Journal, 31(1), 32-43.
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Lee, J., & Chun, J. (2009). Risk response analysis model for construction method using the forced-decision method and binary weighting analysis. Journal of Asian Architecture and Engineering, No.1:205-12.
Leung, H. V., Tummala, R. & Chuah, K. (1998). A knowledge-based system for identifying potential project risks. Omega:26, 623-638.
Levinson, M. (2010). IT Project Management: 10 less considered Keys to Success. Retrieved from http://www.cio.com.
Lientz, B. P & Larsen, L. (2006). Risk Management for IT projects: how to deal with over 150 issues and risks. USA, Elsevier, Inc.
Ludovico, F. & Petrarca, F. (2010), Extreme project management in Telco industry. Paper presented at PMI Global Congress. EMEA, Milan, Italy. Newtown Square, PA: Project Management Institute
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Mortensen, M. (2013). The top five Network Migration Implementation Risks Telecom Project Managers Should Focus On. Retrieved from http://www.redonis.com.
Modarres, M. (2006). Risk analysis in engineering: techniques, tools, and trends. Taylor & Francis Group, Boca Raton.
Nachmias, N. (2005). Improvising organizational transformation overtime: A situated change perspective, 7(1), 63-92.
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Didagra, O. (2013). The Role and the Effects of Risk Management in IT Projects Success, Informatica Economica, 17, 1.
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Olsson, R. (2008). Risk management in a multi project environment. International Journal of Quality and Reliability Management, 25, 1, 60-71
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Ward, S., Chapman, C. (2003). Transforming project risk management into project uncertainty management. International Journal of Project Management, 21 (2), 97-105.
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Alhawari, S., Karadech, L., Talet, A., Mansour E. (2012). Knowledge-based risk management framework for information technology project. International Journal of Information Management, 32(1), 50–65.
Alfayo, K. & Namusonge, G. (2016). The effect of monitoring, evaluation and risk management of projects on performance of firms in the telecommunication sector in Kenya: The Strategic Journal of Business & Change Management, 3(4), 1377-1396.
Aviram-Unger, E., Zwikael, O. & Restubog, S. (2013). Revisiting goals, feedback, recognition and performance success: the case of project teams. Group & Organization Management: An International Journal, 38 (5), 570–600
Bakker, K., Boonstra, A., & Wortmann, H. (2011). Risk management affecting IS/IT project success through communicative action. Pproject Management Journal, 42(3), 75–90. Retrieved from: http://dx.doi.org/10.1002/pmj.20242
Bannerman, P. L. (2008). Risk and risk management in software projects: A reassessment. The Journal of Systems and Software, 81(12), 2118-2133.
Barton, T. L., Shenkir, W.G. and Walker, P. L. (2002). Making Enterprise Risk Management Pay Off. USA, Prentice Hall PTR, Financial Times.
Besner, C., Hobbs, B. (2006). The perceived value and potential contribution of project management practices to project success. Project Management Journal, 37(3), 37-48.
Bloch, M., Blumberg, S., Laartz, J. (2012). Delivering large-scale IT projects on time, on budget, and on value, McKinsey & Company in conjunction with the University of Oxford. Retrieved from http://www.mckinsey.com/businessfunctions/business-technology/our-insights.
Briggs, R. (2017). Normative Theories of Rational Choice: Expected Utility. The Stanford Encyclopedia of Philosophy (spring 2017 Edition). Retrieved from https://plato.stanford.edu/archives/spr2017/entries/rationality-normative-utility.
Cagliano, C., Grimaldi, S., Rafele, C. (2015). Choosing project risk management techniques. A theoretical framework. Journal of risk research, 18(2), 232-248.
Campbell Institute. (2014). Risk Perception: Theories, Strategies and Nest Steps. The Campbell Institute. Retrieved from https://thecampbellinstitute.org
Chapman, C., & Ward, S. (2007). Project risk management: Process, techniques and insights (2nd Ed.). Chichester, UK: John Wiley.
Chapman, C., and Ward, S. 1997. Project Risk Management: Process, Techniques and Insights, John Wiley & Sons.
Chenoweth, T., Minch, R. and Gattiker, T. (2009). Application of Protection Motivation Theory to Adoption of Protective Technologies. Proceedings of the 42nd Hawaii International Conference on System Sciences.
Cisco Visual networking Index. (2016). Global Mobile data Traffic Forecast Update 2016 − 2021, White Paper. Retrieved from https://www.cisco.com
Communication Authority of Kenya. (2015). Mobile operators Fail to Meet Quality of Service targets for the third year running. Retrieved from http://www.ca.go.ke/index.php
Communication Authority of Kenya. (2017). Annual report. Retrieved from http://www.ca.go.ke.
Coles, R. S. & Moulton, R. (2003). Operationalizing IT risk management. Computers and security, 487-492
GSMA (2012). What is the Impact of Mobile Telephony on Economic Growth? A Report for the GSM Association. Retrieved from http://www.gsma.com.
Elkington, P & Smallman, C. (2002). Managing project risks: a case study from the utilities sector. International Journal of Project Management, 20(1), 49-57.
GSA (2016). Evolution to LTE report. Gsa Report. Accessed from: https://gsacom.com
GSMA (2016). The Mobile Economy Africa report. Gsmaintelligence. Accessed from https://www.gsmaintelligence.com/research.
Gupta P. (2011). Risk Management in Indian Companies: Enterprise-Wide Risk Management. Journal of Risk Finance, 121-139.
Hens, T. and Rieger, M. (2016). Financial Economics, Springer Texts in Business and Economics, Springer-Verlag Berlin Heidelberg.
Hillson, D. (2000). Developing effective risk responses. In Proceedings of the 30th Annual Project Management Institute Seminars & Symposium, 10-16 October, 1999, Sylva. NC:Project Management Institute;
Hillson, D., and Simon, P. (2007). Practical project risk management. The ATOM methodology. Vienna, VA: Management Concepts.
Hunt. R. and Kosaroglu, M. (2006) Project manager skill sets in telecommunications industry new product development projects, International Conference on Project Management (Promac2006), PMI, September 2006, Sydney, Australia.
Ibbs, C.W., Kwak, Y. (2000). Assessing project management maturity. Project Management Journal, 31(1), 3243.
ITU (2015). World Telecommunication/ ICT Indicators Database. International telecommunication union report. Retrieved from http://www.itu.int/ITU-D
ITU (2014). ITU Year Book of Statistics. ITU publications. Retrieved from http://www.itu.int/en/ITU.
Jenner, S. (2015). Why do projects ‘fail’ and what can we do about it? The case for disciplined, ‘fast and frugal’ decision-making, PM World Journal, 5, 3.
Jin, X. & Yean, F. (2006). Key relationship-based determinants of project performance in China, Building and Environment, 41, 915-925.
Jun, G., Qiuzhen, R. & Qingguo, E. (2010). Effects of project risk planning on IT project performance focusing on a case of China vendor firms. Project Management Journal, 31(1), 32-43.
Kahneman, D. & Tversky, A. (1979). Prospect Theory, an Analysis of Decision under Risk. Econometrical, 47(2), 263-292.
Kerlinger (2012). Leading Change: “Why Transformation Efforts Fail”. Harvard Business Review, 59-67.
Kerzner, H. (2009). Project Management: A Systems Approach to Planning, Scheduling and Management, Hoboken, New Jersey, USA, John Wiley &Sons, Inc.
Khan, O., & Burnes, B. (2007). Risk and supply chain management: Creating a research agenda, International Journal of Logistics Management, 18(2), 197-216.
Kinyua, E., Ogollah, K. & Mburu D. (2015) Effect Of Risk Management Strategies on Project Performance of Small and Medium Information Communication Technology Enterprises in Nairobi, Kenya. International Journal of Economics, Commerce and Management, United Kingdom, 3(2), 1-30.
Kogut, B. & Zander, U. (1996). What firms do? Coordination, identity and learning. Organization Science, 7(5), 502-518.
Kululanga, G., Kuotcha, W. (2010). Measuring project risk management process for construction contractors with statement indicators linked to numerical scores", Engineering, Construction and Architectural Management, 17(4), 336-351.
Lee, J., & Chun, J. (2009). Risk response analysis model for construction method using the forced-decision method and binary weighting analysis. Journal of Asian Architecture and Engineering, No.1:205-12.
Leung, H. V., Tummala, R. & Chuah, K. (1998). A knowledge-based system for identifying potential project risks. Omega:26, 623-638.
Levinson, M. (2010). IT Project Management: 10 less considered Keys to Success. Retrieved from http://www.cio.com.
Lientz, B. P & Larsen, L. (2006). Risk Management for IT projects: how to deal with over 150 issues and risks. USA, Elsevier, Inc.
Ludovico, F. & Petrarca, F. (2010), Extreme project management in Telco industry. Paper presented at PMI Global Congress. EMEA, Milan, Italy. Newtown Square, PA: Project Management Institute
McKinsey & Co. (2016). Telecommunications industry at cliff’s edge, Report on Telecommunications, Media, and Technology practice in Middle East and Africa. Retrieved from https://www.mckinsey.com
Mortensen, M. (2013). The top five Network Migration Implementation Risks Telecom Project Managers Should Focus On. Retrieved from http://www.redonis.com.
Modarres, M. (2006). Risk analysis in engineering: techniques, tools, and trends. Taylor & Francis Group, Boca Raton.
Nachmias, N. (2005). Improvising organizational transformation overtime: A situated change perspective, 7(1), 63-92.
National Communications Authority. (2012). Mobile Number Portability in Ghana, First Year Report, 1-15 Retrieved from http://www.nca.org.
Nelson, R. & Winter, S. (2008). Innovation systems, path dependency and policy. Journal of Economic Behavior & Organization.
Didagra, O. (2013). The Role and the Effects of Risk Management in IT Projects Success, Informatica Economica, 17, 1.
Olsson, R. (2007). In search of opportunity management: Is the risk management enough? International Journal of Project Management, 25, 745–752.
Olsson, R. (2008). Risk management in a multi project environment. International Journal of Quality and Reliability Management, 25, 1, 60-71
Ovum (2015). Africa Market Outlook. Retrieved from http://info.ovum.com
Owino, W., Keraro, N. & Wanjiku, R. (2015). Factors That Influence the Performance of Information Communication Technology Projects in Kenya. International Journal of Innovative Social Sciences & Humanities Research, 3(2), 127-135
Pimchangthong, D., Boonjing, V. (2017). Effects of risk management practices on IT project success. Management and production engineering review, 8(1), 30–37.
Pinto, J. K. & Prescott, J. (1988). Variations in success factors over the stages in the project life cycle. Journal of Management 14(1).
Porta, M., Puigdomènech, E., Ballester, F., Selva, J., Ribas-Fitó, N., Llop, S., & López, T. (2008). Monitoring concentrations of persistent organic pollutants in the general population: the international experience. Environment International, 34(4), 546-561.
Project Management Institute. (2013). A Guide to the Project Management Body of Knowledge. (5th Ed). Newtown Square, USA: Project Management Inc.
Project Management Institute. (2017). Pulse of the profession global survey, 9th Edition. Newtown square, USA. Project Management Inc.
Pushpakumari, M., & Watanabe, T. (2009). Do strategies improve SME performance? An empirical analysis of japan and Sri Lanka. Meijo Asian Research Journal,1(1).
PWC (2017). The Global Information Technology Report: Strategyand. Retrieved from http://www.strategyand.pwc.com.
Rabechini, R., Carvalho, M. (2013), Understanding the Impact of Project Risk Management on Project Performance: an Empirical Study; Journal of Technology management and Innovation, 8, Special Issue ALTEC.
Raz, T., Shenhar, A. j., Dvir, D. (2002). Risk management, project success, and technological uncertainty. R&D Management, 32(2), 101-109.
Research ICT Africa (2007). Telecommunications Sector Performance in 16 African countries. Retrieved from www.researchICTafrica.net.
Robson, C., & McCartan, K. (2016). Real world research. John Wiley & Sons ltd.
Roque, R., & de Carvalho, Y. (2013). Impact of project risk management, assessment of risks on project performance in Brazilian Vendor companies. International Journal of Project Management, Vol. 21 No 2, pp. 97-105.
Rwanda utility regulatory Authority. (2017). Retrieved from http://www.rura.rw
Safaricom (2016). Safaricom Annual Report 2016/2017, accessed from http://www.safaricom.co.net
Shenhar, A. J. (2002). One size does not fit all projects: exploring classical contingency domains. Management Science, 47(3), 394–414.
Shoemaker (1982). Management science, the expected utility model: its variants, purposes. Evidence and limitations. Journal of economic literature.
Smith, N. (2006) Managing Risk in Construction Projects, Blackwell Science, Oxford.
Speckle, F., Elten, H. & Kruis, M. (2007). Sourcing of internal auditing: An empirical study. Management Accounting Research, 36, 1-66
Standish Group. (2014). Chaos Report. Retrieved from http://www.projectsmart.co.uk
Taylor, H., Artman E., Woelfer, J. (2012). Information Technology Project Risk Management: Bridging the Gap between Research and Practice, Journal of Information Technology, 27, 17-34.
Thapar, S. Karmakar, P. (2016). Performance evaluation of LTE network: An energy saving and capacity gain perspective, International conference on Advances in Computing, Communications and informatics (ICACCI).
The Institute of Risk Management. (2010). Fundamentals of effective risk management. London, Kogan Page publishers.
Tuncel, G., & Alpan, G. (2010). Risk assessment and management for supply chain networks: A case study. Computers in industry, 61(3), 250-259.
Voetsch, J., Cioffi, F. and Anbari, F.T. (2004) Project Risk Management Practices and their Association with Reported Project Success, Proceedings from IRNOP.
Wallace, P., & Blumkin, M. (2007). Major Construction Projects: Improving Governance and Managing Risks. Retrieved from www.deloitte.com
Ward, S., Chapman, C. (2003). Transforming project risk management into project uncertainty management. International Journal of Project Management, 21 (2), 97-105.
Wieland, A. & Wallenberg, C.M. (2012). Dealing with supply chain risks: Linking risk management practices and strategies to performance, International Journal of Physical Distribution and Logistics Management, 42(10), 887-905.
Wipro (2014). Accelerated Rollout of LTE services, accessed on 20th June 2017 [online]. Available: http://www.wipro.com/documents/accelerated-rollout-of-LTE-services.pdf
Woods, M. (2011). Risk Management in Organizations: An Integrated Case Study Approach, Abingdon and Routledge. Harvard Business Review. 79(1): 66-76.
World Economic Forum. (2015). Global Information Technology Report: INSEAD. Retrieved from www.weforum.org/gitr.
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Published
2018-11-02
How to Cite
Maritim, S. K., & Chelule, D. K. (2018). INFLUENCE OF PROJECT RISK MANAGEMENT PRACTICES ON PERFORMANCE OF TELECOMMUNICATION NETWORK MODERNISATION PROJECTS IN KENYA. European Journal of Business and Strategic Management, 3(7), 101 – 124. Retrieved from https://www.iprjb.org/journals/index.php/EJBSM/article/view/764
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