The Effect of Intrinsic and Extrinsic Rewards for Developers on Information Systems Project Success

Abstract

Project failure in information sytems development continues to plague organizations. A lack of intrinsic and extrinsic rewards for developers may be a cause of such failure. A survey instrument was created using existing project success scales and items based on structured interviews with 12 IS project managers. Two hundred two members of the Project Management Institute completed the survey. After rigorous validation, path analysis (an extension of multiple regression that simultaneously tests more complex relationships) showed that use of intrinsic rewards predicted client satisfaction and perceived quality (but not on-time and within-budget implementation success), whereas use of extrinsic rewards predicted implementation success (but not satisfaction or quality). Future researchers might investigate reasons for these complementary findings. Managers might use the findings in efforts to improve information systems project success.

Keywords

project management information systems human resource planning rewards theory

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