The Role of Project Monitoring and Evaluation in International Development Projects: An Agency Theory Perspective

Project impact is one of the fundamental dimensions of success in international development projects, a dimension that so many fail to achieve. Drawing on agency theory, this study conceptualizes that monitoring and evaluation influence international development project impact by resolving information asymmetry and goal incongruence. The empirical results reveal that resolving goal incongruence through project monitoring and evaluation activities affect international development project impact. The information asymmetry, however, was only resolved through project monitoring. These novel findings have substantial implications for both theory and practice because we examine the individual effects of project monitoring and project evaluation on international development project impact through the resolution of goal incongruence and information asymmetry for a behavioral-control context, such as international development projects.