IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v30y2019i3p1051-1072.html
   My bibliography  Save this article

Seeing the Trees or the Forest? The Effect of IT Project Managers’ Mental Construal on IT Project Risk Management Activities

Author

Listed:
  • Jong Seok Lee

    (Department of Accounting and Information Management, Haslam College of Business, The University of Tennessee, Knoxville, Tennessee 37996)

  • Mark Keil

    (J. Mack Robinson College of Business, Georgia State University, Atlanta, Georgia 30303)

  • Eliezer Shalev

    (TrendsSpotting, Hod HaSharon, Israel)

Abstract

Prior research has suggested that information technology (IT) project managers (PMs) often fail to take adequate steps to manage project risks and that this may contribute to the high failure rate associated with IT projects. Knowing when to pay attention to the trees versus the forest may play an important role in IT project risk management. We draw on construal level theory (CLT) to offer a fresh theoretical perspective on IT project risk management as it is uniquely suited to understanding why IT PMs may focus on the forest (abstract, high-level construal) or the trees (concrete, low-level construal). Specifically, we integrate CLT with IT project risk management and theorize how IT PMs’ mental construal affects four key IT project risk management activities: (1) risk identification, (2) risk impact assessment, (3) risk response planning, and (4) risk response enactment. We recruited a total of 805 IT PMs for this research and conducted a series of four laboratory experiments. In our experiments, we found that seeing the trees is beneficial in risk identification, risk impact assessment, and risk response planning. Specifically, we found that a concrete (relative to abstract) mental construal of a project leads IT PMs to identify a greater number of risks associated with the project (Experiment 1), and a concrete (relative to abstract) mental construal of a project risk leads IT PMs to perceive a greater potential impact of the risk (Experiment 2) and to perceive that more effort and resources are required for responding to the risk (Experiment 3). In contrast, we found that seeing the forest is beneficial in risk response enactment in that an abstract (relative to concrete) mental construal of a risk response leads IT PMs to be more willing to enact the risk response (Experiment 4).

Suggested Citation

  • Jong Seok Lee & Mark Keil & Eliezer Shalev, 2019. "Seeing the Trees or the Forest? The Effect of IT Project Managers’ Mental Construal on IT Project Risk Management Activities," Information Systems Research, INFORMS, vol. 30(3), pages 1051-1072, September.
  • Handle: RePEc:inm:orisre:v:30:y:2019:i:3:p:1051-1072
    DOI: 10.1287/isre.2019.0853
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/isre.2019.0853
    Download Restriction: no

    File URL: https://libkey.io/10.1287/isre.2019.0853?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Terry Connolly & Doug Dean, 1997. "Decomposed Versus Holistic Estimates of Effort Required for Software Writing Tasks," Management Science, INFORMS, vol. 43(7), pages 1029-1045, July.
    2. Jaime B. Windeler & Likoebe Maruping & Viswanath Venkatesh, 2017. "Technical Systems Development Risk Factors: The Role of Empowering Leadership in Lowering Developers’ Stress," Information Systems Research, INFORMS, vol. 28(4), pages 775-796, December.
    3. Joseph Lampel & Jamal Shamsie & Zur Shapira, 2009. "Experiencing the Improbable: Rare Events and Organizational Learning," Organization Science, INFORMS, vol. 20(5), pages 835-845, October.
    4. repec:pri:cepsud:125krueger is not listed on IDEAS
    5. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    6. Kalle Lyytinen & Lars Mathiassen & Janne Ropponen, 1998. "Attention Shaping and Software Risk—A Categorical Analysis of Four Classical Risk Management Approaches," Information Systems Research, INFORMS, vol. 9(3), pages 233-255, September.
    7. Daniel Kahneman & Alan B. Krueger & David Schkade & Norbert Schwarz & Arthur A. Stone, 2006. "Would You Be Happier If You Were Richer? A Focusing Illusion," Working Papers 77, Princeton University, Department of Economics, Center for Economic Policy Studies..
    8. James G. March & Zur Shapira, 1987. "Managerial Perspectives on Risk and Risk Taking," Management Science, INFORMS, vol. 33(11), pages 1404-1418, November.
    9. Gino, Francesca & Schweitzer, Maurice E. & Mead, Nicole L. & Ariely, Dan, 2011. "Unable to resist temptation: How self-control depletion promotes unethical behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 115(2), pages 191-203, July.
    10. Daniel Kahneman & Alan B. Krueger & David Schkade & Norbert Schwarz & Arthur A. Stone, 2006. "Would You Be Happier If You Were Richer? A Focusing Illusion," Working Papers 77, Princeton University, Department of Economics, Center for Economic Policy Studies..
    11. Fitzsimmons, Jason R. & Douglas, Evan J., 2011. "Interaction between feasibility and desirability in the formation of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 26(4), pages 431-440, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bent Flyvbjerg & Alexander Budzier & Jong Seok Lee & Mark Keil & Daniel Lunn & Dirk W. Bester, 2022. "The Empirical Reality of IT Project Cost Overruns: Discovering A Power-Law Distribution," Papers 2210.01573, arXiv.org.
    2. David V. Boivin & Olivier Boiral, 2022. "So Close, Yet So Far Away: Exploring the Role of Psychological Distance from Climate Change on Corporate Sustainability," Sustainability, MDPI, vol. 14(18), pages 1-19, September.
    3. Akhtar, Naeem & Ittefaq, Huma & Siddiqi, Umar Iqbal & Islam, Tahir & Hameed, Zahid & Kuzior, Aleksandra, 2024. "Zero-COVID and retail: Using multi-wave data to examine the role of perceived risk and psychological factors in shopping abandonment," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beja, Edsel Jr., 2019. "Consumer Expectations Survey and Quarterly Social Weather Survey: Evidence of Convergent Validity and Causality," MPRA Paper 101074, University Library of Munich, Germany.
    2. Powdthavee, Nattavudh & van den Berg, Bernard, 2011. "Putting different price tags on the same health condition: Re-evaluating the well-being valuation approach," Journal of Health Economics, Elsevier, vol. 30(5), pages 1032-1043.
    3. Feduzi, Alberto & Runde, Jochen, 2014. "Uncovering unknown unknowns: Towards a Baconian approach to management decision-making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 124(2), pages 268-283.
    4. Di Tella, Rafael & Haisken-De New, John & MacCulloch, Robert, 2010. "Happiness adaptation to income and to status in an individual panel," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 834-852, December.
    5. Oshio, Takashi & Umeda, Maki & Fujii, Mayu, 2013. "The association of life satisfaction and self-rated health with income dynamics among male employees in Japan," Japan and the World Economy, Elsevier, vol. 28(C), pages 143-150.
    6. Mittone, Luigi & Panebianco, Fabrizio & Santoro, Alessandro, 2017. "The bomb-crater effect of tax audits: Beyond the misperception of chance," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 225-243.
    7. Silva, Wesley Mendes da & Onusic, Luciana Massaro & Norvilitis, Jill M. & Moura, Gilnei L., 2013. "Ilusão de foco e satisfação com a vida entre universitários em São Paulo e Santa Maria," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 53(5), September.
    8. Douthit, Jeremy & Millar, Melanie & White, Roger M., 2021. "Horseshoes, hand grenades, and regulatory enforcement: Close experience with potential sanctions and fraud deterrence," Organizational Behavior and Human Decision Processes, Elsevier, vol. 166(C), pages 137-148.
    9. Collewet, Marion, 2014. "Approaches to well-being, use of psychology and paternalism in economics," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 8, pages 1-25.
    10. Klaus Wälde, 2015. "Stress and Coping - An Economic Approach," LIDAM Discussion Papers IRES 2015018, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    11. Oh, Chang Hoon & Shin, Jiyoung & Oetzel, Jennifer, 2021. "How does experience change firms' foreign investment decisions to non-market events?," Journal of International Management, Elsevier, vol. 27(1).
    12. Michal Paulus & Eva Michalikova & Vladimir Benacek, 2014. "German International Trade: Interpreting Export Flows According to the Gravity Model," Working Papers IES 2014/19, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2014.
    13. Peter J Buckley & Liang Chen & L Jeremy Clegg & Hinrich Voss, 2018. "Risk propensity in the foreign direct investment location decision of emerging multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 153-171, February.
    14. Joyita Banerji & Kaushik Kundu & Parveen Ahmed Alam, 2023. "The Impact of Behavioral Biases on Individuals’ Financial Choices under Uncertainty: An Empirical Approach," Business Perspectives and Research, , vol. 11(3), pages 401-424, September.
    15. repec:oup:qjecon:v:128:y:2012:i:1:p:53-104 is not listed on IDEAS
    16. Marcus T. Wolfe & Pankaj C. Patel, 2017. "Instant gratification: temporal discounting and self-employment," Small Business Economics, Springer, vol. 48(4), pages 861-882, April.
    17. Facci, Eugenio L. & Chartier, Genie, 2008. "A decision-making model for workload/salary choices and their effect on well-being," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 1880-1905, October.
    18. Manel Baucells & Rakesh K. Sarin, 2013. "Determinants of Experienced Utility: Laws and Implications," Decision Analysis, INFORMS, vol. 10(2), pages 135-151, June.
    19. Berman, Jonathan Z. & Bhattacharjee, Amit & Small, Deborah A. & Zauberman, Gal, 2020. "Passing the buck to the wealthier: Reference-dependent standards of generosity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 157(C), pages 46-56.
    20. Philip S. Morrison & William A.V. Clark, 2016. "Loss aversion and duration of residence," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(36), pages 1079-1100.
    21. Wei Pan & Yi-Shin Chen, 2018. "Network approach for decision making under risk—How do we choose among probabilistic options with the same expected value?," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-19, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orisre:v:30:y:2019:i:3:p:1051-1072. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.