Political risk and project success: mediating mechanism and interacting effect

Complexities bring risks in projects. Political risk involves political instability in the project domain, and lessens the chances of return on investment. In this study, we aim to investigate the impact of the political risk on project success. Data were collected from project-based organisations (information technology, construction and other developmental projects) operating in Islamabad and Rawalpindi. Confirmatory factor analysis was used to test model fitness. Results of the study suggest that political risk has an astounding effect on project industry and negatively effects manager’s stress resulting in project failure. But, if there is some risk avoidance strategy against political risk adopted by the manager, then the stress of the manager will also be lessened with fewer chances of project failure. Theoretical and practical implications are discussed.