IS Project Escalation in Developing Countries

Although Information and Communication Technologies (ICT) often drives development, there is a lack of ICT induced growth in developing countries. This is particularly interesting because of the different outcomes between the implementation of the same technological initiatives in developed and developing countries. G-bank is a leading Information Technology (IT) driven, Nigerian financial services organization. By focusing on an escalated Management Information Systems (MIS) project in G-bank, this paper identifies the gap between the outcomes in implementation of technology initiatives. It suggests that direct transfer of technology initiatives from industrialized to developed nations, without adaptability to ‘local content’, leads to failure. While Approach Avoidance Theory (AAT) can be used to explain escalation/de-escalation behaviors, it is not adapted to the developing countries context. Additional factors, such as inability to adapt technology to local organizational culture, are identified as influencing outcomes and are among the major causes of escalating projects in developing countries