Organisational problems as the root cause of systemic failures of IT projects

The relevance of the study was determined by the chronic failures of government information technology projects, which are accompanied by budget overruns and missed deadlines, representing a global problem. These failures are rarely purely technical; they are symptoms of deep organisational pathologies. Traditional frameworks for project management and business analysis focus on rational processes, often ignoring the irrational forces that deform them. The purpose of this study was to analyse and systematise the impact of four key organisational pathologies – dysfunctional formalisation, rentseeking behaviour, favouritism, and autocratic management style – on the fundamental processes of project management and business analysis in government IT projects. The primary research method was thematic analysis using the 6-phase model. The empirical base consisted of M=18 publicly available documents from 2019-2025, selected according to the principles of the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). Sources included audit reports from supreme audit institutions official reports from law enforcement agencies, which underwent triangulation. Data analysis revealed three main mechanisms of deformation in project management and business analysis processes: (1) formalisation and ritualisation, which transforms risk management and metrics into mere formality; (2) inversion and sabotage (through rent-seeking behaviour), which turns project management and business analysis into tools for falsifying procurements and embezzling funds; (3) the dominant autocratic management style, which replaces systematic processes with the leader’s will. A conceptual matrix has been formed that details this impact. The work offers a set of criteria for early identification of pathologies and practical recommendations for countermeasures (in particular, using open data and strengthening rational standardisation). The practical significance of the proposed matrix lies in its function as a diagnostic tool for project managers, business analysts, and auditors

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Publication Details

Journal
Economics Entrepreneurship Management
Published
2025-12-23
DOI
https://doi.org/10.56318/eem2025.02.074
Primary Topic
Banking, Crisis Management, COVID-19 Impact
Type
article
Field-Weighted Citation Impact
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article

Organisational problems as the root cause of systemic failures of IT projects

Halyna Melnyk, Viktor Rovinsky, Vasyl Melnyk
Economics Entrepreneurship Management
Banking, Crisis Management, COVID-19 Impact
article

Organisational problems as the root cause of systemic failures of IT projects

Halyna Melnyk, Viktor Rovinsky, Vasyl Melnyk
article en

Abstract

The relevance of the study was determined by the chronic failures of government information technology projects, which are accompanied by budget overruns and missed deadlines, representing a global problem. These failures are rarely purely technical; they are symptoms of deep organisational pathologies. Traditional frameworks for project management and business analysis focus on rational processes, often ignoring the irrational forces that deform them. The purpose of this study was to analyse and systematise the impact of four key organisational pathologies – dysfunctional formalisation, rentseeking behaviour, favouritism, and autocratic management style – on the fundamental processes of project management and business analysis in government IT projects. The primary research method was thematic analysis using the 6-phase model. The empirical base consisted of M=18 publicly available documents from 2019-2025, selected according to the principles of the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). Sources included audit reports from supreme audit institutions official reports from law enforcement agencies, which underwent triangulation. Data analysis revealed three main mechanisms of deformation in project management and business analysis processes: (1) formalisation and ritualisation, which transforms risk management and metrics into mere formality; (2) inversion and sabotage (through rent-seeking behaviour), which turns project management and business analysis into tools for falsifying procurements and embezzling funds; (3) the dominant autocratic management style, which replaces systematic processes with the leader’s will. A conceptual matrix has been formed that details this impact. The work offers a set of criteria for early identification of pathologies and practical recommendations for countermeasures (in particular, using open data and strengthening rational standardisation). The practical significance of the proposed matrix lies in its function as a diagnostic tool for project managers, business analysts, and auditors

Economics Entrepreneurship ManagementVol. 12(2)
Openalex Percentile: Top 17%
Banking, Crisis Management, COVID-19 Impact
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