The relationship of contrasting project governance approaches with achieving ERP project success

Abstract

This dissertation assesses contrasting approaches to project governance and their correlation with ERP project success. The opposing perceptions of agency theory and stewardship theory are applied in the research to deconstruct and describe the different forms and functions of project governance. Accordingly, every project governance approach is either more oriented towards the interests of the shareholders or the stakeholders, and is either controlled through strict processes and procedures or through a focus on project outcomes. Questionnaires were sent via email to a target population comprising of ERP professionals, ERP project managers, and others with ERP project experience. 166 usable responses were obtained. Regression and correlation analysis revealed that ERP project success has a significant relationship with a project governance methodology that increases the degree to which it is stakeholder oriented. Whilst ERP project success is not correlated with the type of control approach implemented within the project governance structures. These findings offer additional evidence on the notion that governance approaches in which stewardship principles are adopted are meaningful in the context of achieving ERP project objectives.