TY - GEN
T1 - Optimism bias in managing it project risks
T2 - 22nd European Conference on Information Systems, ECIS 2014
AU - Shalev, Eliezer
AU - Keil, Mark
AU - Lee, Jong Seok
AU - Ganzach, Yoav
PY - 2014
Y1 - 2014
N2 - Prior research has shown that people have a tendency to be overly optimistic about future events (i.e., optimism bias) in a variety of settings. In this study, we suggest that optimism bias has significant implications for IT project risk management, as it may cause people to become overly optimistic that they can easily manage project risks. Drawing upon construal level theory (CLT), we investigate optimism bias in managing IT project risks. Based on an experiment with IT professionals, we found that a high-level construal of a project risk leads individuals to have a more optimistic perception about successfully managing the project risk, causes them to focus more on benefits over costs in choosing a risk management plan, and leads them to identify more pros than cons associated with a risk management plan relative to a low-level construal. Implications for both theory and practice are discussed.
AB - Prior research has shown that people have a tendency to be overly optimistic about future events (i.e., optimism bias) in a variety of settings. In this study, we suggest that optimism bias has significant implications for IT project risk management, as it may cause people to become overly optimistic that they can easily manage project risks. Drawing upon construal level theory (CLT), we investigate optimism bias in managing IT project risks. Based on an experiment with IT professionals, we found that a high-level construal of a project risk leads individuals to have a more optimistic perception about successfully managing the project risk, causes them to focus more on benefits over costs in choosing a risk management plan, and leads them to identify more pros than cons associated with a risk management plan relative to a low-level construal. Implications for both theory and practice are discussed.
KW - Cognitive bias
KW - Construal level theory
KW - IT project risk management
KW - Optimism bias
KW - Project management
UR - http://www.scopus.com/inward/record.url?scp=84905837141&partnerID=8YFLogxK
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AN - SCOPUS:84905837141
SN - 9780991556700
T3 - ECIS 2014 Proceedings - 22nd European Conference on Information Systems
BT - ECIS 2014 Proceedings - 22nd European Conference on Information Systems
PB - Association for Information Systems
Y2 - 9 June 2014 through 11 June 2014
ER -