Top

Review of Managerial Science

Published in:

19-06-2021 | Original Paper

Epic fail: Exploring project failure’s reasons, outcomes and indicators

Published in: Review of Managerial Science | Issue 4/2022

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

Understanding the complex phenomenon of project failure can facilitate improved project management and lower the risk of future project failure. Using a qualitative pre-study combined with a quantitative survey conducted with project managers, the study assesses the reasons for, as well as the outcomes and indicators of, project failure. The study (1) identifies planning as well as people factors as significant reasons for project failure, (2) explores outcomes of project failure, and (3) identifies key indicators and early warning signs of project failure. The results provide multifaceted insights into the phenomenon of project failure, and the authors provide specific theoretical, methodological, and managerial implications.

previous article Barriers to entrepreneurship: opportunity recognition vs. opportunity pursuit

next article Affective commitment through further training: the roles of firm provision and employee participation

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Available only for authorised users

Notably, more detailed perspectives focus on antecedents and drivers, the event and subsequent direct effects, indirect effects, and long-term outcomes (for a more detailed overview, see Khelil 2016; Klimas et al. 2020).

We included respondents from different regions of the world in the qualitative study to assess whether there were cultural differences in the approach to dealing with project failure. However, we found no evidence for any cultural differences and thus analyzed the interviews without further focusing on any regional factors.

The greatest proportion of respondents came from Germany (N = 71), the United States (N = 60), China (N = 22), and the United Kingdom (N = 14).

Al-Ahmad W, Al-Fagih K, Khanfar K, Alsamara K, Abuleil S, Abu-Salem H (2009) A taxonomy of an IT project failure: root causes. Int Manage Rev 5(1):93–104

Albert M, Balve P, Spang K (2017) Evaluation of project success: a structured literature review. International Journal of Managing Projects in Business.

Amankwah-Amoah J (2015) Where will the axe fall? European Business Review.

Anderson JC, Gerbing DW (1988) Structural equation modeling in practice: A review and recommended two-step approach. Psychol Bull 103(3):411–423CrossRef

Atkinson R (1999) Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria. Int J Project Manage 17(6):337–342CrossRef

Azorín JM, Cameron R (2010) The application of mixed methods in organisational research: A literature review. Electr J Business Res Method 8(2):95

Bagozzi RP (2007) On the meaning of formative measurement and how it differs from reflective measurement: Comment on Howell, Breivik, and Wilcox.

Baker BN, Murphy DC, Fisher D (2008) Factors affecting project success. Project Management Handbook, Second Edition, 902–919.

Barney JB, Hesterly W (2006) Organizational economics: Understanding the relationship between organizations and economic analysis. The SAGE handbook of organization studies, 111–148.

Belassi W, Tukel OI (1996) A new framework for determining critical success/failure factors in projects. Int J Project Manage 14(3):141–151CrossRef

Black K (1996) Causes of project failure: a survey of professional engineers. PM Netw 10:21–24

Bronnenmayer M, Wirtz BW, Göttel V (2016) Success factors of management consulting. RMS 10(1):1–34CrossRef

Bryde DJ, Robinson L (2005) Client versus contractor perspectives on project success criteria. Int J Project Manage 23(8):622–629CrossRef

Burgelman RA, Välikangas L (2005) Managing internal corporate venturing cycles. MIT Sloan Manag Rev 46(4):26–34

Burmann C, Zeplin S, Riley N (2009) Key determinants of internal brand management success: An exploratory empirical analysis. J Brand Manag 16(4):264–284CrossRef

Cardon MS, Stevens CE, Potter DR (2011) Misfortunes or mistakes?: Cultural sensemaking of entrepreneurial failure. J Bus Ventur 26(1):79–92CrossRef

Charmaz K (2006) Constructing grounded theory: A practical guide through qualitative analysis. Sage, California

Chen HL (2015) Performance measurement and the prediction of capital project failure. Int J Project Manage 33(6):1393–1404CrossRef

Chin A, Cohen TR, Lindblad MR (2019) Consumer bankruptcy stigma: understanding relationships with familiarity and perceived control. J Consum Aff 53(2):600–629CrossRef

Chiponde D, Gledson B, Greenwood D (2019) Examining construction and project management perspectives of project-based failure.

Chipulu M, Ojiako U, Gardiner P, Williams T, Mota C, Maguire S, Shou Y, Stamati T, Marshall A (2014) Exploring the impact of cultural values on project performance: The effects of cultural values, age and gender on the perceived importance of project success/failure factors. Int J Oper Prod Manag 34(3):364–389CrossRef

Clarke A (1999) A practical use of key success factors to improve the effectiveness of project management. Int J Project Manage 17(3):139–145CrossRef

Cleveland S, Cleveland M (2020) Leadership competencies for sustained project success. Int J Appl Manage Theory Res 2(1):35–47CrossRef

Coltman T, Devinney TM, Midgley DF, Venaik S (2008) Formative versus reflective measurement models: Two applications of formative measurement. J Bus Res 61(12):1250–1262CrossRef

Cooke-Davies T (2002) The “real” success factors on projects. Int J Project Manage 20(3):185–190CrossRef

Cope J (2011) Entrepreneurial learning from failure: An interpretative phenomenological analysis. J Bus Ventur 26(6):604–623CrossRef

Creswell JW (2002) Educational research: Planning, conducting, and evaluating quantitative. Prentice Hall, Upper Saddle River, NJ

Cusin J, Maymo V (2016) Post-bankruptcy stigmatization of entrepreneurs and bankers’ decisions to finance. Management 19(4):305–329

Davis K (2014) Different stakeholder groups and their perceptions of project success. Int J Project Manage 32(2):189–201CrossRef

Davis K (2017) An empirical investigation into different stakeholder groups perception of project success. Int J Project Manage 35(4):604–617CrossRef

Diamantopoulos A, Winklhofer HM (2001) Index construction with formative indicators: An alternative to scale development. J Mark Res 38(2):269–277CrossRef

Dias A , Teixeira AA (2017). The anatomy of business failure: A qualitative account of its implications for future business success. European Journal of Management and Business Economics.

DiMasi JA, Hansen RW, Grabowski HG (2003) The price of innovation: new estimates of drug development costs. J Health Econ 22(2):151–185CrossRef

Dvir D, Lechler T (2004) Plans are nothing, changing plans is everything: The impact of changes on project success. Res Policy 33(1):1–15CrossRef

Dvir D, Lipovetsky S, Shenhar A, Tishler A (1998) In search of project classification: A non-universal approach to project success factors. Res Policy 27(9):915–935CrossRef

Eisenhardt K (1989) Agency theory: An assessment and review. Acad Manag Rev 14(1):57–74CrossRef

Flyvbjerg B (2014) What you should know about megaprojects and why: An overview. Proj Manag J 45(2):6–19CrossRef

Flyvbjerg B, Budzier A (2013) Why your IT project might be riskier than you think. arXiv preprint arXiv:1304.0265..

Flyvbjerg B, Bruzelius N, Rothengatter W (2003) Megaprojects and risk: An anatomy of ambition. Cambridge University Press, CambridgeCrossRef

Flyvbjerg B, Holm MS, Buhl S (2002) Underestimating costs in public works projects: Error or lie? J Am Plann Assoc 68(3):279–295CrossRef

Flyvbjerg B, Skamris Holm MK, Buhl SL (2004) What causes cost overrun in transport infrastructure projects? Transp Rev 24(1):3–18CrossRef

Fornell C, Larcker DF (1981) Structural equation models with unobservable variables and measurement error: Algebra and statistics. J Mark Res 18(3):382–388CrossRef

Gemünden HG, Salomo S, Krieger A (2005) The influence of project autonomy on project success. Int J Project Manage 23(5):366–373CrossRef

Glaister KW, Falshaw JR (1999) Strategic planning: still going strong? Long Range Plan 32(1):107–116CrossRef

Glaser BG, Strauss AL (2017) Discovery of grounded theory: Strategies for qualitative research. Routledge, UKCrossRef

Grundy T (2006) Rethinking and reinventing Michael Porter’s five forces model. Strateg Chang 15(5):213–229CrossRef

Harrington N (2005) It’s too difficult! Frustration intolerance beliefs and procrastination. Personality Individ Differ 39(5):873–883CrossRef

Hewstone M, Greenland K (2000) Intergroup conflict. Int J Psychol 35(2):136–144CrossRef

Hoegl M, Gemuenden HG (2001) Teamwork quality and the success of innovative projects: A theoretical concept and empirical evidence. Organ Sci 12(4):435–449CrossRef

Hüttl-Maack V, Pick D, Gierl H (2019) Handle with care! How majority cues can reduce the negative effects of warnings of foreseeable product failures. RMS 13(4):689–723CrossRef

Jeng DJF, Hung TH (2019) Comeback of the failed entrepreneur: An integrated view of costs, learning, and residual resources associated with entrepreneurial failure. J Small Bus Strateg 29(1):30–42

Jensen MC (2003) A theory of the firm: governance, residual claims, and organizational forms. Harvard University Press

Johnson RB, Onwuegbuzie AJ (2004) Mixed methods research: A research paradigm whose time has come. Educ Res 33(7):14–26CrossRef

Joslin R, Müller R (2016) The relationship between project governance and project success. Int J Project Manage 34(4):613–626CrossRef

Jost PJ, Lammers F (2009) The organization of project evaluation under competition. RMS 3(2):141–155CrossRef

Jugdev K, Müller R (2005) A retrospective look at our evolving understanding of project success. Proj Manag J 36(4):19–31CrossRef

Kerzner H (2017) Project management: a systems approach to planning, scheduling, and controlling, 12th edn. Wiley

Khelil N (2016) The many faces of entrepreneurial failure: Insights from an empirical taxonomy. J Bus Ventur 31(1):72–94CrossRef

Klimas P, Czakon W, Kraus S, Kailer N, Maalaoui A (2020) Entrepreneurial failure: a synthesis and conceptual framework of its effects. European Management Review.

Kraśnicka T, Głód W, Wronka-Pośpiech M (2018) Management innovation, pro-innovation organisational culture and enterprise performance: testing the mediation effect. RMS 12(3):737–769CrossRef

Krippendorff K (2004) Content analysis: An introduction to its methodology, 2nd edn. Sage Publications, Thousand Oaks, CA

Laffont JJ, Martimort D (2002) The theory of incentives: The principal-agent model. Princeton University Press, New JersyCrossRef

Levasseur RE (2017) People skills: building the perfect team—a change management perspective. Interfaces 47(3):270–272CrossRef

Li Y, Wen W, Yu X, Meng X, Tao Y (2020) What’s Holding Back Recovery from Failure? Insights from Entrepreneurial Passion and Coping Strategy. In Academy of Management Proceedings (Vol. 2020, No. 1, p. 10095). Briarcliff Manor, NY 10510: Academy of Management

Lv Z, Rodríguez-García M, Sendra-García J (2020) Does institutional quality affect the level of entrepreneurial success differently across the entrepreneurship distribution? Review of Managerial Science, 1–19

McGrath RG, Keil T, Tukiainen T (2006) Extracting value from corporate venturing. MIT Sloan Manag Rev 48(1):50–56

Meuser M, Nagel U (2009) The expert interview and changes in knowledge production. Interviewing experts. Palgrave Macmillan, London, pp 17–42CrossRef

Mir FA, Pinnington AH (2014) Exploring the value of project management: Linking project management performance and project success. Int J Project Manage 32(2):202–217CrossRef

Molina-Azorin JF (2012) Mixed methods research in strategic management: Impact and applications. Organ Res Methods 15(1):33–56CrossRef

Molina-Azorin JF (2016) Mixed methods research: An opportunity to improve our studies and our research skills. Eur J Manag Bus Econ 25:37–38CrossRef

Molina-Azorίn JF (2011) The use and added value of mixed methods in management research. J Mixed Methods Res 5(1):7–24CrossRef

Morris A, Wilkinson SJ, Algeo C, Candusso D (2016) Measuring project success in local government. ANZAM.

Morris P, Hough G (1987) The anatomy of major projects. Wiley, Chichester, UK

Müller R, Jugdev K (2012) Critical success factors in projects: Pinto, Slevin, and Prescott–the elucidation of project success. Int J Manag Proj Bus 5(4):757–775CrossRef

Müller R, Turner R (2007) The influence of project managers on project success criteria and project success by type of project. Eur Manag J 25(4):298–309CrossRef

Müller R, Zhai L, Wang A (2017) Governance and governmentality in projects: Profiles and relationships with success. Int J Project Manage 35(3):378–392CrossRef

Munns AK, Bjeirmi BF (1996) The role of project management in achieving project success. Int J Project Manage 14(2):81–87CrossRef

Nixon P, Harrington M, Parker D (2012a) Leadership performance is significant to project success or failure: a critical analysis. Int J Product Perform Manag 61(2):204–216CrossRef

Nixon P, Harrington M, Parker D (2012) Leadership performance is significant to project success or failure: a critical analysis. International Journal of productivity and performance management.

Nunnally JC (1978) Psychometric theory, 2nd edn. McGraw-Hill, New York

Pinto JK, Mantel SJ (1990) The causes of project failure. IEEE Trans Eng Manage 37(4):269–276CrossRef

Pinto JK, Slevin DP (1987) Critical factors in successful project implementation. IEEE Trans Eng Manage 34(1):22–27CrossRef

Pinto JK, Slevin DP (1988) Project success. Proj Manag J 4:67–72

Pinto JK, Slevin DP (1989) Critical success factors in R&D projects. Res Technol Manag 32(1):31–35CrossRef

Rhaiem K, Amara N (2019) Learning from innovation failures: A systematic review of the literature and research agenda. Review of Managerial Science, 1–46

Ritter T, Gemünden HG (2004) The impact of a company’s business strategy on its technological competence, network competence and innovation success. J Bus Res 57(5):548–556CrossRef

Robertson S, Williams T (2006) Understanding project failure: using cognitive mapping in an insurance project. Proj Manag J 37(4):55–71CrossRef

Rubin IM, Seelig W (1967) Experience as a factor in the selection and performance of project managers. IEEE Trans Eng Manage 3:131–135CrossRef

Sage D, Dainty A, Brookes N (2014) A critical argument in favor of theoretical pluralism: Project failure and the many and varied limitations of project management. Int J Project Manage 32(4):544–555CrossRef

Savolainen P, Ahonen JJ, Richardson I (2012) Software development project success and failure from the supplier’s perspective: A systematic literature review. Int J Project Manage 30(4):458–469CrossRef

Schubert N, Krcic S (2020) Here lies our beloved project, may it rest in peace-the impact of grief after project failure: An exploratory study of negative emotions within the context of project failure and their impact on emotional recovery and subsequent learning

Shao J, Müller R, Turner JR (2012) Measuring program success. Proj Manag J 43(1):37–49CrossRef

Shepherd DA, Cardon MS (2009) Negative emotional reactions to project failure and the self-compassion to learn from the experience. J Manage Stud 46(6):923–949CrossRef

Shepherd DA, Haynie JM (2011) Venture failure, stigma, and impression management: A self-verification, self-determination view. Strateg Entrep J 5(2):178–197CrossRef

Shepherd DA, Patzelt H (2018) Entrepreneurial Cognition: Exploring the Mindset of Entrepreneurs. Springer, BerlinCrossRef

Shepherd DA, Covin JG, Kuratko DF (2009) Project failure from corporate entrepreneurship: Managing the grief process. J Bus Ventur 24(6):588–600CrossRef

Shepherd DA, Patzelt H, Wolfe M (2011) Moving forward from project failure: Negative emotions, affective commitment, and learning from the experience. Acad Manag J 54(6):1229–1259CrossRef

Singh S, Corner P, Pavlovich K (2007) Coping with entrepreneurial failure. J Manag Organ 13(4):331CrossRef

Stingl V, Geraldi J (2017) Errors, lies and misunderstandings: Systematic review on behavioural decision making in projects. Int J Project Manage 35(2):121–135CrossRef

Tao X, Robson PJA, Wang CL (2019) Project failure, error orientation and learning from failure. In Academy of Management Proceedings (Vol. 2019, No. 1, p. 15732). Briarcliff Manor, NY 10510: Academy of Management

Thiry M (2006) The definition of success. PM Netw 20(12):21–22

Tuman GJ (1983) Development and implementation of effective project management information and control systems. Project Management Handbook, 495–532

Turner JR (2004) Five necessary conditions for project success. Int J Project Manage 5(22):349–350CrossRef

Turner JR, Müller R (2005) The project manager’s leadership style as a success factor on projects: A literature review. Proj Manag J 36(2):49–61CrossRef

Turner JR (1999) The Handbook of Project-Based Management: Improving the Processes for Achieving Strategic Objectives, 2nd edn. McGraw-Hill Publishing Co, London

Turner R, Zolin R (2012) Forecasting success on large projects: developing reliable scales to predict multiple perspectives by multiple stakeholders over multiple time frames. Proj Manag J 43(5):87–99CrossRef

Ucbasaran D, Shepherd DA, Lockett A, Lyon SJ (2013) Life after business failure: The process and consequences of business failure for entrepreneurs. J Manag 39(1):163–202

Verner CM, Sarwar D (2021) Avoiding project failure and achieving project success in NHS IT system projects in the United Kingdom. Int J Strategic Eng (IJoSE) 4(1):33–54CrossRef

Weinkauf K, Högl M, Gemünden HG, Hölzle K (2005) Zusammenarbeit zwischen organisatorischen Gruppen: Ein Literaturüberblick über die Intergroup Relations-. Schnittstellen-Und Boundary Spanning-Forschung Journal Für Betriebswirtschaft 55(2):85–111CrossRef

Westerveld E (2003) The Project Excellence Model®: linking success criteria and critical success factors. Int J Project Manage 21(6):411–418CrossRef

Westfall A (2020) Information Technology Project Failure Caused by Inadequate Project Scoping: An Exploratory Qualitative Inquiry on Inadequate Project Scopes (Doctoral dissertation, Capella University).

Wright JN (1997) Time and budget: the twin imperatives of a project sponsor. Int J Project Manage 15(3):181–186CrossRef

Zuofa T (2014) Project failure: The way forward and panacea for development. International Journal of Business and Management, 9(11)

Title: Epic fail: Exploring project failure’s reasons, outcomes and indicators
Publication date: 19-06-2021
Published in: Review of Managerial Science / Issue 4/2022
Print ISSN: 1863-6683
Electronic ISSN: 1863-6691
DOI: https://doi.org/10.1007/s11846-021-00479-4

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Other articles of this Issue 4/2022

Analyzing joint brand purchases by conditional restricted Boltzmann machines

Corporate governance and ethical culture: Do boards matter?

Barriers to entrepreneurship: opportunity recognition vs. opportunity pursuit

Soft skills, do we know what we are talking about?

Is the readability of abstracts decreasing in management research?

The effect of internal corporate social responsibility practices on firm performance: the mediating role of employee intrapreneurial behaviour