The performance of firms in the software industry depends considerably on the quality of their software development processes. Managing software development is a challenging task, as management controls needs to impose discipline and coordinate action to ensure goals are met while simultaneously incorporating autonomy to motivate software developers to be innovative and produce quality work. How should such firms manage software development projects so that their development processes are flexible and predictable--resulting in products that meet quality goals and that are delivered within budget and on time? The management literature suggests two approaches to control: the process approach and the structure approach. The process approach recommends control of activities through specifying methods (behavior control) and through specifying performance criteria (outcome control). In contrast, the structure approach recommends control through centrally devised standards for activities (standardization) and by the delegation of authority for decision-making (decentralization). This study synthesizes these two approaches to suggest that formal managerial control is exerted through a matrix of control comprising four modes: standardization of methods, standardization of performance criteria, decentralization of methods, and decentralization of performance criteria. We test the association of the modes of control with performance in a sample of 56 firms in the software industry in the United States. The results suggest that performance is enhanced by establishing uniform performance criteria across projects (standardization of performance criteria) while giving each project team the authority to make decisions with respect to methods (decentralization of methods). However, standardization of methods across all projects and decentralization of performance criteria by delegating the authority to make decisions about performance criteria to project teams were both not...
Knowledge is now recognized as an important basis for competitive advantage and many firms are beginning to establish initiatives to leverage and manage organizational knowledge. These include efforts to codify knowledge in repositories as well as efforts to link individuals using information technologies to overcome geographic and temporal barriers to accessing knowledge and expertise. We suggest that Knowledge Management (KM) efforts, to be successful, need to be sensitive to features of the context of generation, location, and application of knowledge. To this end, we highlight the situated organizational learning perspective that views knowledge as embedded in individuals, in connections between individuals, and in artifacts as a useful lens to examine phenomena related to the establishment of KM initiatives. In an ethnographic case study of an effort to change knowledge-work processes in a market research firm, we apply the situated knowledge perspective to highlight the factors responsible for the limited success of the initiative in the firm. This study suggests that a consideration of the situated knowledge web and the alignment of the initiatives with the features of the knowledge web are central to success in knowledge management efforts in firms.
The article presents an executive overview of the article, "The Effects of Customizability and Reusability on Perceived Process and Competitive Performance of Software Firms," by Sarma R. Nidumolu and Gary W. Knotts, presented later in this same issue of "MIS Quarterly."
This study compares the structural contingency and risk-based perspectives regarding the effects of project coordination and requirements uncertainty on performance dimensions such as process control and product flexibility. The structural contingency perspective suggests that the fit between coordination and requirements uncertainty influences performance, where fit is conceptualized in three ways: mediation, interaction, and profile deviation. The risk-based perspective suggests that performance risk is an alternative mechanism that explains the effect of coordination and uncertainty on process control and product flexibility. A survey methodology based on sixty-four projects from banking and other industries was used to test the two perspectives and their relevant hypotheses. The results suggest lack of support for any of the three approaches to the structural contingency perspective, but some support for the role of software performance risk in explaining performance. In particular, software performance risk seems to mediate the effect of vertical coordination and requirements uncertainty on process control. Horizontal coordination appears to have a direct and unmediated positive effect on product flexibility but is unrelated to either software performance risk or process control. The findings suggest that practitioners could benefit from awareness of the different capabilities provided by the two coordination mechanisms: Vertical coordination enables project managers to bring projects to closure by reducing performance risks and increasing control over the process, whereas horizontal coordination leads to flexible software applications because it allows exploration of ideas and issues.
Experience with information technology (IT) implementation in the local administrations of less developed countries (LDCs) has been largely disappointing. Conventional wisdom suggests that such implementation efforts are usually inappropriate to the information-poor environments of many LDCs. This study describes the Governorates Project in Egypt, which seems to have been an encouraging exception to such "wisdom." The project, which was initiated in 1987 by the Egyptian Cabinet's In formation and Decision Support Center (IDSC), represented a significant administrative and technological innovation because it sought to implement an IDSC in each of the 27 governorates of Egypt. The purpose of each governorate IDSC was to provide computer-based information and decision support to the governor and other local administrators. Based on our findings, three stages of the project are identified -- implementation, evaluation, and transformation of the innovation. Three theoretical perspectives derived from past research, i.e., functional, political/symbolic, and social information processing, were used to explain the project outcomes, such as the governors' perceptions and behaviors concerning their IDSCs. Results suggest that the symbolic/political and social information processing perspectives had considerable power in explaining the outcomes during implementation, whereas the functional perspective was particularly effective in explaining the out-comes during evaluation and transformation. The theoretical framework and findings suggest considerable potential for understanding IT implementations in both business and administrative settings.