Assessing the effect of IT infrastructure on project success in the financial sector: The role of project flexibility

Abstract

This study investigates the critical role of IT infrastructure and project flexibility in achieving project success within the financial sector. Based on resource-based theory and the dynamic capabilities perspective, we propose a conceptual model wherein IT infrastructure influences project success both directly and indirectly through its impact on project flexibility. Data collected from 190 financial sector professionals were analyzed using PLS-SEM. Our findings provide strong support for all hypothesized relationships. Specifically, we find that IT infrastructure has a significant positive impact on both project success and project flexibility. Furthermore, project flexibility is found to mediate the relationship between IT infrastructure and project success, indicating that a robust IT infrastructure contributes to project success, in part, by fostering greater project flexibility. These findings indicate the strategic importance of IT infrastructure investments for financial institutions seeking to enhance project outcomes in a rapidly changing and increasingly competitive landscape.