The Moderating Role of Risk on Informal and Formal Control on Process Performance: An Evidence from Lahore base IT firms

Abstract

The main focus of this study is to inquire about the impact of control on process performance with the moderating role of risk in the information technology industry of Lahore, Pakistan. Finding the impacts of control types and moderating roles of risk types on process performance is the main contribution of this study because the information technology industry of Pakistan is facing problems of lack of control and risk. Empirical data is collected from large and medium scale information technology companies based in Lahore city. Empirical data is tested by using SPSS technique and results are deduced. All the hypotheses of the study are validated. The results showed that informal control and formal control has a positive impact on process performance because to enhance better control is improving the chances of better process performance. User and requirement risk are used as moderating variables. It is found that user risk and requirement risk have a negative impact on the relationship between control and process performance. Both of these risk lead to miss commitments and process performance is compromised. Hence, it is the responsibility of Project Manager (PM) to enhance control of the project and to avoid, reduce or minimize the unfavourable effects of user and requirement risk on process performance.