Factors Affecting IT Project Implementation Success in the Manufacturing Industry in Malaysia

Abstract

Globally bi/lions of dollars are spent on information technology projects by both public and private sectors annually. Unfortunately, more than half of these projects fail to deliver the intended objectives. Thus, millions of dollars are wasted on failed projects. This research intends to investigate the factors that influence the success of Information Technology (1 T) project implementations in Malaysia. In this study, five factors that influence the success of the project such as project management, requirements and risk management, organizational culture, management support and communication were selected through literature review. The scope of the research was limited to three industries only namely manufacturing, I T service providers and banking. The primary research methodology deployed for this research was a questionnaire survey. Based on the regression analysis, management support, project management and communication were found to have significant positive influence on the success of IT projects. Meanwhile, organizational culture, requirements, and risk management did not have any significant relationship with the outcome of the IT projects’ success. The survey also revealed that quality procedures, project implementation approaches and system ownership by end-users could be the other potential barriers to a successful I T project implementation. The /Zndings of this research could help organizations embarking on IT projects to address the potential deficiency and pitfalls in their [T projects" in order to ensure the success of its implementation.