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Research

Antidotes for high complexity and ambiguity in software development

1

Stephanie Watts Sussman

a,*

, P.J. Guinan

2,b

aWeatherhead School of Management ± MIDS, Case Western Reserve University, 10900 Euclid Ave., Cleveland, OH 44106-7235, USA bBabson College ± Information Systems, Babson Park, Wellesley, MA 02157-0310, USA

Received 18 February 1998; accepted 8 November 1998

Abstract

In a longitudinal study of 47 software development teams, we investigate interactions between team and technology factors and the degree of complexity and ambiguity of the projects themselves. From the literature, we propose a theoretical model that identi®es a characteristic of the technology (modularity) and a characteristic of the team process (con¯ict resolution) used during system development, as effective for minimizing the adverse effects of high task-based complexity and ambiguity (those tasks for which multiple acceptable solutions exist). We hypothesize that modularity and con¯ict-resolution techniques will account for a signi®cant amount of the variance in user satisfaction for highly complex and ambiguous projects, but that this will not be the case for simple and unambiguous projects. Our ®ndings con®rm this hypothesis, indicating that effective con¯ict resolution and modularity are associated with signi®cantly higher client satisfaction six months after implementation for all projects. An explanation for these ®ndings is offered, followed by implications for theorists and practitioners.#1999 Elsevier Science B.V. All rights reserved.

Keywords:Complexity; Ambiguity; Con¯ict resolution; Modularity; Task±technology ®t; Software development; Teams; Survey research; Moderation analysis

1. Introduction

The team tasks of software design and development are intrinsically complex and often exacerbated by incomplete user requirements, changing environmen-tal demands, and high levels of interdependence

within teams [12]. Many large-scale software devel-opment projects do not function as intended or ful®l their potential [11, 12]. Clearly, research into improv-ing the software development process is still war-ranted [15].

Managing development teams is a non-routine task characterized by high levels of complexity [30], espe-cially when these teams are medium or large. Task complexity or uncertainty has been studied for its effects on various types of systems, such as expert systems [55], decision-support systems [23, 45], end-user computing [9], and project management in gen-eral [35]. What can be done to mitigate the negative impact of high task complexity on the software devel-opment process? The structural contingency perspec-*Corresponding author. E-mail: [email protected]

1Note: The original version of this paper was published in the Proceedings of the Thirtieth Annual Hawaii International Con-ference on System Sciences (Vol. III, p. 158), Jan. 1977, where it won the award for the best paper in the Organizational Systems and Technology Segment of the Information Systems Track. IEEE Society has given permission for this modified version to be published elsewhere.

2E-mail: [email protected]

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tive of organizational design [48, 52] prescribes an appropriate ®t between organizational structure and environmental uncertainty for reducing task complex-ity and uncertainty. According to the information processing perspective, more routine, less complex environments process information most ef®ciently with hierarchical control structures [20], while com-plex and uncertain environments bene®t from orga-nismic organizational forms [7] and rich information channels [13].

In addition to high complexity, theorists also iden-tify ambiguous or equivocal task environments as a threat to effective information processing. Such task environments are those in which no single correct outcome is inherently correct, and potentially accep-table multiple solutions exist [14]. The creation of shared systems of symbols can help reduce task ambiguity [53], and provide a horizontal coordination mechanism [35] by forcing stakeholders to undertake an explicit process of convergence on diverse desired outcomes.

From an information processing perspective, the impact of task complexity has been widely documen-ted [18, 54], but less research has been conducdocumen-ted on the role of task ambiguity in the context of software development. Nor has there been any recent empirical work relating to in¯uences of task complexity and task ambiguity on software development teams.

Although theoretical prescriptions for mitigating the adverse effects of task complexity and ambiguity are helpful, they are very general in nature, and do little to guide practitioners in selecting particular technologies and processes for software development from the myriad of options available. It is important to investigate which speci®c technologies and processes are most effective under conditions of high complexity and ambiguity, since it is under these conditions that traditional methods of coordination and control are least effective [20]. Successful identi®cation of such factors contributes to our theoretical understanding of these two organizational problems at a higher level of granularity than has been achieved thus far, and can bene®t practitioners faced with real task uncertainty and ambiguity.

Section 2 presents past research on task-based com-plexity and ambiguity and develops hypotheses around speci®c team and technology characteristics identi®ed as having the capacity to absorb the negative

effects of complexity and ambiguity. Section 3 describes the method used to analyze these hypoth-eses, based on a survey of 47 medium-sized software development teams. The resultant ®ndings and dis-cussion are presented in Section 4. Conclusions and implications of these results are discussed in Sec-tion 5.

2. Background

Organization design research posits that organiza-tional forms can be ®tted to characteristics of tasks in order to optimize organizations' ability to deal with external forces [21, 49]. Team problem-solving pro-cesses are clearly affected by the type of task involved [32, 8]. These task characteristics are distinct from the technologies employed to transform inputs into out-puts, most frequently described on a continuum of routine/non-routine [40].

Two major forces external to organizational sub-units in¯uence the ability of their members to process information: uncertainty and equivocality [13]. Uncer-tainty is de®ned as the absence of information [2], and is reduced by new task-related information [50]. Ambiguous task environments are those where multi-ple and con¯icting interpretations of existing informa-tion occur, such that they are resolved through enact-ment of shared interpretations of the task at hand [53].

2.1. Task complexity

Work-related uncertainty can be viewed as an objective characteristic of the task [8] that imposes behavioral requirements on individuals facing it. Task complexity is one widely accepted source of work-unit uncertainty [50]. Task uncertainty has been associated with lower levels of software project performance and higher levels of software performance risk [35].

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forms and processes that promote maximum informa-tion processing capacity should be most bene®cial in highly complex tasks [20], such as software develop-ment.

2.2. Task ambiguity

Unlike task complexity, task ambiguity refers to those tasks for which multiple acceptable solutions exist, as perceived by those with different frames of reference [2]. Task information that is clear and directed leads to similar interpretations, while task information that is ambiguous leads to multiple inter-pretations which must be resolved in order to develop a shared understanding of how to perform the task. At the team level, the team leader must work to integrate the separate perceptions, frames and knowledge bases of team members [51], who are often working on different development tasks, especially in the case of large projects [56]. A system development project in which different stakeholders have divergent goals and views of the ®nal system presents an ambiguous task to its developers [5]. Typical ambiguous systems are those spanning different functional areas, such that managers from the different functions have particular and divergent needs for the system. Such con¯icts create task ambiguity when they are not identi®ed and resolved.

Organizational forms which promote the exchange of rich information have been prescribed as most effective for reducing task ambiguity, since this type of information increases the capacity of the informa-tion exchanged to move individual percepinforma-tions toward a shared perception [13]. Alternatively, we can view the problem from the perspective of social cognition: Externalized knowledge is less ambiguous than tacit knowledge, since it is explicit and codi®ed. Externa-lization of tacit knowledge held by team members occurs through social processes which make use of metaphors, analogies and models [36], and by the use of explicit models of the system-to-be. Cognitive maps, prototypes and scripts are used to represent individuals' tacit cognitions [26] by cognitive scien-tists. In the same way, technologies which enable physical depiction of the future computer system ± such as application module management systems ± enable the articulation of shared team perceptions of the system-to-be; articulations that then become

man-ifestations of shared, externalized knowledge. The process of building these models reduces task ambi-guity by requiring that the divergent perspectives of the various individuals involved become enmeshed as their tacit knowledge becomes public and represented. Thus, rather than information richness, we look to another prescription for the reduction of task ambi-guity ± the creation of systems of symbols which embody shared perceptions of an unambiguous task outcome.

The concept of task-technology ®t is widely applied to system utilization theory [22] at the individual level. We build a related contingency model at the group level to hypothesize an appropriate ®t between these two characteristics of the task, complexity and ambi-guity, and a group process factor ± team con¯ict resolution ± and a technology factor ±modularity ± during the software development process, as described below.

2.3. Team conflict resolution

A substantial body of research has investigated the impact of con¯ict resolution across team boundaries, especially in interaction with users participating in development [43]. This research has focused primarily on medium-sized teams consisting of 8±15 members. Less work has been done in the area of within-team con¯ict resolution. Team-member con¯ict-resolution behaviors during system development have been directly associated with project success [44]. For this reason, and as a consequence of the theoretical argu-ment presented below, we have selected con¯ict reso-lution as the key group-process variable to include in our model.

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mem-bers resolve con¯icts effectively through generation of agreement and consensus [43]. Con¯ict resolution is one highly effective coordination mechanism that can increase communication within the team and so miti-gate the adverse effects of complexity by increasing the quantity of information available to the team [52, 56].

In these ways, con¯ict-resolution behaviors can increase the information processing capacity of a team [47]. Since teams facing high levels of task complexity need to process greater quantities of information than those facing lower levels of task complexity, teams with effective con¯ict resolution behaviors should be able to handle high levels of task complexity [50] more successfully than those without effective con¯ict resolution behaviors. And since con¯ict resolution capabilities are also mechanisms that teams can use to generate shared perceptions of the desired outcome, con¯ict resolution skills can be helpful for resolving the inconsistent views of ambiguous projects. Thus, con¯ict resolution may mitigate the impacts of both task complexity and ambiguity.3

2.4. Modularity

Where organizations reach the limits of their capa-city to manage complexity, information technologies can be used to reduce and manage this complexity [28]. Technologies include the programs and routines generated from tool use, as well as the actual physical tools. Systems development methodologies and the production of necessary artifacts require that the development team articulate its shared perceptions of the system-to-be. We have argued above that ambi-guity can be reduced through the creation and use of shared systems of symbols [53], so technologies that require the team to make explicit its tacit perceptions of the system through generation of modules or other physical artifacts should be most effective for complex and ambiguous processes.

Explicit shared perceptions of the system under development include the whole system, its parts,

and the relationships of these parts to the whole [51]. Under the guise of reuse, many systems are developed in parts or modules, a system characteristic we refer to here as `Modularity'. When teams design modules, they are sharing their views of the system parts. Therefore, we consider the extent to which modularization technology is utilized during system development to be a measure of the degree to which a team makes its tacit knowledge explicit ± through module creation and selection. The bene®ts of mod-ularity are well documented in the literature [37, 19, 39], especially in the context of objected-oriented technologies [38, 16] but not fully theoretically grounded [1, 4]; we offer a theoretical explanation for these bene®ts: The process of deciding and resol-ving multiple views about which modules to build and to include in the ®nal system externalizes individuals' tacit knowledge so that a group knowledge conver-gence can occur and be made explicit. In this view, the greater the degree of modularity used by the team, the greater the likelihood that task ambiguity will be reduced in the process. In addition, by committing to include certain modules and not others in the ®nal system, modularity also mitigates task ambiguity by reducing the number of future possible options avail-able to the team. And by making explicit the relation-ship of parts to the whole, modularity generates additional information which may be helpful in redu-cing task-based uncertainty.

2.5. Information system success

Client satisfaction or client information satisfaction is the most widely used single measure of IS success [17]. As DeLone and McLean state: ``It is hard to deny the success of a system which its users say that they like.'' The clients' perceptions of the value, appro-priateness, and timeliness of the information that the system produces is an extremely important determi-nant of overall system success [27], and is used in this study to measure system success six months after installation.

2.6. Model development

Fig. 1 illustrates a model derived from the litera-ture, re¯ecting the relationships between the two task 3By investigating conflict resolution within the context of a

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factors, the two process factors, and the dependent measure of user information satisfaction.

From this model we hypothesize that modularity and con¯ict resolution moderate the negative impacts of complexity and ambiguity on user information satisfaction:

Hypothesis 1:Taken together, effective con¯ict resolu-tion and high levels of modularity will result in high user information satisfaction (six months after project implementation) in highly complex projects, but not in less complex projects.

Hypothesis 2:Taken together, effective con¯ict resolu-tion and high levels of modularity will result in high user information satisfaction(six months after project implementation)in highly ambiguous projects, but not in less ambiguous projects.

By investigating both process factors together, we can compare the extent to which they moderate the task variables, to see if one is more salient than the other under the different task conditions. Since we have no theoretical basis on which to judge the relative impacts of the moderating variables under the two task conditions, this aspect of the analysis is data driven and, thus, exploratory.

3. Research method

This study investigated 47 software development teams from 15 organizations. The research design is based on a cross-sectional ®eld study. These teams consisted of eight-to-®fteen members each, so can be

considered `medium-sized'. The unit of analysis is the IS design team.

For each software development project, two sets of questionnaires were distributed. The ®rst question-naire was distributed to team members and completed during the design and code phase of software devel-opment. It contained items on the degree of con¯ict resolution and modularity, as well as perceived task complexity and ambiguity. The second questionnaire was distributed to actual users of the developed sys-tems, six months after implementation.

In the ®rst questionnaire, data on the independent and moderating variables were collected directly from members of each team. Wherever possible, all team members were surveyed. When it was not possible to reach all team members, teams provided a represen-tative sample of key informants from the team. Using key informant techniques for data collection has been found to be effective for survey research in organiza-tions [41]. In the second questionnaire, a minimum of two users per project were asked the dependent mea-sure ± to what extent the information provided them by the system meets their precise information needs. By surveying both team members and users six months apart, we prevent self-report and recall bias in the dependent measure.

Only projects estimated to have twelve-to-®fteen-month development schedules were selected, from organizations representing a range of industries: insur-ance, ®nancial services, high technology, heavy indus-try, transportation, and petroleum. Table 1 presents demographic information.

3.1. Measures and procedures

Excerpts from standard indicators were used to measure the constructs of this study. All indicators Fig. 1. The model: moderation of complexity and ambiguity

factors.

Table 1

Description of study sample

Industry # Cos # Teams # Respondents

Insurance 4 11 41

Transportation 2 12 79

High technology 1 7 64

Financial services 4 11 58

Petroleum 2 3 18

Heavy industry 1 3 31

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and constructs are in the form of seven-point Likert-type scales, and are listed in Appendix A. Question order was randomized and items were reverse-scored in the actual instrument to reduce response order effects. Client information-satisfaction items were taken from Ives et al. [27]. Indicators for con¯ict resolution were drawn from Hackman [24], while those for modularity were taken from Henderson and Cooprider [25]. Task ambiguity was operationa-lized using Daft and Macintosh's [14] measure of work-unit information equivocality. Task complexity items were drawn from Van de Ven, Delbecq and Koenig [52].

4. Results and discussion

The unit of analysis is the team, so values for each construct reported represent the average value of that construct for the team. Table 2 presents descriptive statistics, and the Cronbach s indicate acceptable levels of reliability for all constructs.

Univariate analyses con®rm acceptable levels of skewness and kurtosis for all variables. Pearson cor-relation matrices indicate no signi®cant corcor-relations between independent constructs (see Table 3), except between ambiguity and complexity. Thus, the two hypothesized moderators are not entirely independent or strictly orthogonal. However, their correlation of

0.34 is of medium magnitude and within acceptable parameters for a weak form test of orthogonality. And based on the sample size, analysis of the effects of the two moderators is performed independently, so this correlation does not impact it. To investigate conver-gent validity, con®rmatory factor analysis with var-imax rotation and Kaiser normalization was used. All items loaded onto their respective constructs with no overlap (see Table 4).

In order to assess both, the form and the strength of the hypothesized moderators, it is necessary to employ two types of analysis ± moderated regression analysis performed on the full sample, and the split-sample analysis of subgroups divided by the moderator [46]. These two types of analyses are presented in the following.

4.1. Moderated regression analysis

Moderated regression analysis (MRA) avoids the loss of information resulting from the arti®cial transformation of a continuous variable into a quali-tative one. It enables the identi®cation of all types of moderators, except homologizers which operate through the error term to affect the strength rather than the form of the predictor-criterion relationship. Subgroup analysis in Section 4.2 will be used to determine if the hypothesized task moderators are homologizers.

Table 2

Descriptive statistics

Factor Mean/median S.D. No. indicators

Ambiguity 3.96/4.08 0.79 3 (0.8117)

Complexity 4.97/5.00 0.85 2 (0.8398)

System success 5.17/5.67 1.44 3 (0.9472)

Modularity 2.12/2.00 1.57 3 (0.8640)

Conflict resolution 5.12/5.17 0.81 2 (0.8839)

Table 3

Correlation matrices using whole sample

Ambiguity Complexity Modularity Conflict resolution UIS

Ambiguity 1.00 0.34**

ÿ0.08 ÿ0.12 ÿ0.19

Complexity 1.00 ÿ0.05 ÿ0.004 ÿ0.10

Modularity 1.00 ÿ0.06 0.22

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MRA involves comparing three regression equa-tions for equality of the regression coef®cients [46]. The ®rst of these compares regressions that contain the independent variables and the moderator with one containing these and an additional interaction term.

To create interactions terms between con¯ict reso-lution and modularity, and complexity and ambiguity, task complexity and ambiguity were coded as dummy variables, with `zero' representing below-average complexity and ambiguity, and `one' representing

above-average complexity and ambiguity. These dummy variables were then multiplied by the respec-tive independent factors in each model to create cross-product terms, and regressions were performed on the entire sample (nˆ47) using these interaction terms, the hypothesized moderators, and the independent variables. This technique was used to determine the extent to which the independent constructs vary in a linear fashion with the continuous variables of com-plexity and then ambiguity. Signi®cant outcomes generated in this way may allow us to say, for exam-ple, that not only does modularity signi®cantly impact client satisfaction under conditions of high ambiguity, but also that the more the ambiguity present, the greater impact of modularity on client satisfaction, and vice versa.

A regression (Table 5(a)) was performed using the two independent factors of con¯ict resolution and the extent of modularity, the interaction terms of these two factors with the complexity dummy variable, and complexity. The overall model was signi®cant (F(5,41)ˆ2.83,p< 0.05) with an adjustedr2of 0.17. No interaction factors were signi®cant. The hypothesized moderators of con¯ict resolution and modularity were signi®cant, while complexity is not, although its impact is negative, as predicted from theory. Thecoef®cients of both the interaction terms are positive, however.

Table 5(b) presents results of the same analysis for ambiguity. The overall model was signi®cant Table 4

Factor analyses using whole sample

Factor 1 Factor 2

Rotated factor matrix from factor analysis of independent variables

Ambiguity P4S5Q4 0.87630

P4S5Q18 0.87607 P4S5Q20 0.81088

Complexity P4S5Q14 0.93321

P4S5Q10 0.93071

Rotated factor matrix from factor analysis of the moderator variables

Modularity P2S1Q4 0.94558

P2S1Q8 0.92372

P2S1Q12 0.91714

Conflict resolutionS3Q8 0.92876

S3Q26 0.88392

S3Q16 0.86345

Table 5

Whole sample regression analysis

T Significance ofT

(a)A complexity dummy in interaction with other variablesa

Complexity ÿ0.07 ÿ0.30 0.7639

Modularity 0.31 1.89 0.0656

Modularitycomplex 0.02 0.10 0.9176

Conflict resolution 0.44 2.96 0.0051

Conflict resolutioncomplex 0.11 0.34 0.7377

(b) An ambiguity dummy in interaction with other variablesb

Ambiguity ÿ0.12 ÿ0.50 0.6188

Modularity 0.18 1.05 0.2991

Modularityambiguity 0.27 1.11 0.2736

Conflict resolution 0.48 3.31 0.0020

Conflict resolutionambiguity ÿ0.18 ÿ0.67 0.5086

aAdjustedr2of 0.17,F(5,41)

ˆ2.83,pˆ0.028. bAdjustedr2of 0.20,F(5,41)

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(F(5,41)ˆ3.24, pˆ0.0149) with an adjusted r2of 0.20. The negative impact of ambiguity is greater than that of complexity, but is not signi®cant. The only signi®cant individual factor is con¯ict resolution, although the modularity±ambiguity interaction term has a strong positive.

Under MRA, for complexity or ambiguity to be pure moderators, signi®cant differences must be apparent between the regression coef®cients of the regressions above that include the interaction terms, and those below (Table 6(a and b)), that do not include them. No signi®cance was found, so we can conclude that task complexity and ambiguity are not pure moderators in this model.

A ®nal comparison in MRA is of regression coef®-cients between regressions without the moderator and those that include the moderator. Table 7 depicts the regression without moderators, and was signi®cant overall (F(2,44)ˆ7.30, p< 0.01), with an adjusted r2of 0.21. Con¯ict resolution and modularity were individually signi®cant (for con¯ict, Tˆ3.47, pˆ0.0012, and for modularity,Tˆ2.22,p< 0.05). However, the model was not signi®cantly different from those that included the moderators. We can conclude that while complexity and ambiguity have

no signi®cant relationship to the criterion or depen-dent variable, they do not interact with the indepen-dent or predictor variables in a way that moderates the form of these relationships.

4.2. Subgroup analysis

In the split-sample analysis, median values for complexity and ambiguity were used to divide the sample into high and low complexity and ambiguity, as is typical for split sample analysis [33, 29, 31]. For complexity, the median reported value was 5.0, but since seven cases reported exactly this value, these seven were eliminated, leaving 19 teams with above-the-median complexity value of 5.0, and 21 teams reporting below this average. For ambiguity, the reported value of median was 4.0, but one case reported exactly this value, so this team was elimi-nated, leaving 24 teams above this median value and 22 below it.

Following standard practice [34], Chow tests [10] were performed to determine whether the models based on the split samples were signi®cantly different from one another. Regressions were performed on the four subsamples de®ned by the model ± high and low task complexity, and high and low task ambiguity.

To investigate Hypothesis 1, con¯ict resolution and modularity were regressed in separate regressions onto the dependent variable of client satisfaction, ®rst using only high complexity teams, and then using only low complexity teams (H1). For Hypothesis 2, this process was repeated using only high ambiguity teams, and then using only low ambiguity teams (H2). Hypothesis 1 was then investigated, and for teams reporting above the median in task complexity, the model is highly signi®cant (F(2,15)ˆ11.44, p< 0.001), with an adjusted r2 of .55, as is the individual con¯ict factor (Tˆ4.43,p< 0.001). Mod-ularity is also signi®cant (Tˆ2.19,p< 0.05), but not substantially different from that revealed in the whole sample analysis. For those teams reporting below average complexity, neither the model nor either individual indicator are signi®cant.

Moderation is dif®cult to con®rm with small sample sizes, but results of the Chow test con®rmed that the regression coef®cients of the high and low complexity subsamples were signi®cantly different (Fˆ3.083, pˆ0.05). Thus, split-sample analyses con®rm Table 6

Whole sample regression analysis

T Significance ofT

(a)Complexity and the independent variablesa

Complexity 0.03 0.19 0.8493

Modularity 0.30 2.20 0.0330

Conflict resolution 0.46 3.43 0.0014

(b)Ambiguity and the independent variablesb

Ambiguity ÿ0.11 ÿ0.85 0.4023

Modularity 0.29 2.20 0.0336

Conflict resolution 0.43 3.16 0.0029

aAdjustedr2of 0.20,F(3,43)

ˆ3.51,p< 0.01. bAdjustedr2of 0.21,F(3,43)

ˆ5.07,p< 0.01.

Table 7

Whole sample regression analysisaof model

T Significance ofT

Conflict resolution 0.46 3.47 0.0012

Modularity 0.30 2.22 0.0317

aAdjustedr2of 0.21,F(2,44)

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Hypothesis 1 to the extent that the model is highly signi®cant under conditions of high task complexity, and insigni®cant under conditions of low task com-plexity. However, this effect is due to the impact of con¯ict resolution (which is almost ten times more signi®cant than in the whole-sample analysis), and not the effect of modularity. Thus, Hypothesis 1 is true for con¯ict resolution, but not for modularity. [See Table 8(a and b).]

Hypothesis 2 was then investigated, and for teams reporting above the median in task ambiguity, the model is highly signi®cant (F(2,21)ˆ9.48, pˆ0.0012), with an adjustedr2of 0.42. Both, con¯ict resolution and modularity are individually signi®cant (for con¯ict,Tˆ3.47, p< 0.01, and for modularity, Tˆ3.07,p< 0.01). For those teams reporting below average ambiguity, neither the model nor the indicator is signi®cant. However, the Chow test comparing regression coef®cients was not signi®cant (Fˆ1.003,pˆ0.37). Despite the fact that the model is signi®cant under conditions of high ambiguity, but not low ambiguity, we cannot con®rm Hypothesis 2. [See Table 9(a and b).

Table 10(a and b) illustrate the effects of con¯ict resolution and modularity on user information satis-faction for those teams with high and low average levels ofboth, complexity and ambiguity, respectively. As in the foregoing, the model was signi®cant for the high complexity and ambiguity sample (F(2,8)ˆ 5.72,p< 0.05), with an adjusted r2 of 0.49, but not signi®cant for the low ambiguity and complexity sample. Again, con¯ict resolution explained a larger portion of the variance than did ambiguity. The Chow test did con®rm that the two regression coef®cients are signi®cantly different (Fˆ3.34,pˆ0.05).

4.3. Discussion

This study utilizes a parsimonious, theoretically grounded model derived from the organizational design and software development literatures. Its con-tribution lies in its simplicity, and also in its combined investigation of the two important task variables, both of which can sabotage effective software develop-ment. It operationalizes theoretical prescriptions for managing complexity and ambiguity in its selection of two critical process factors ± con¯ict resolution and modularity. These factors together do not explain any of the variance in client information satisfaction six months subsequent to installation for unambiguous, low-complexity projects. But they explain 55% of the variance in client satisfaction for projects with above-average complexity, and 42% of the variance in client satisfaction for projects with above-average ambigu-ity. As compared to their impact across all projects, con¯ict resolution plays a greater role than modularity Table 8

Split sample regression analysis

T Significance ofT

(a)Model using teams with above-median complexitya Conflict resolution 0.72 4.43 0.0005

Modularity 0.36 2.19 0.045

(b)Model using teams with below-median complexityb Conflict resolution 0.10 0.46 0.6499

Modularity 0.25 1.13 0.2731

aAdjustedr2of 0.55,F(2,15)

ˆ11.44,p< 0.001. bAdjustedr2of

ÿ0.03,F(2,19)ˆ0.695,pˆ0.511.

Table 9

Split sample regression analysis

T Sinificance ofT

(a)Model using teams with above-median ambiguitya Conflict resolution 0.55 3.47 0.0023

Modularity 0.49 3.07 0.0058

(b)Model using teams with below-median ambiguityb Conflict resolution 0.26 1.14 0.2680

Modularity 0.14 0.64 0.5307

aAdjustedr2of 0.42,F(2,21)

ˆ9.48,pˆ0.0012. bAdjustedr2of

ÿ0.03,F(2,20)ˆ0.70,pˆ0.51.

Table 10

Split sample regression

T Significance ofT

(a) Using teams with both, above-median complexity and ambiguitya

Conflict resolution 0.60 2.65 0.0292

Modularity 0.42 1.83 0.1043

(b) Using teams with both, below-median complexity and ambiguityb

Conflict resolution 0.11 0.39 0.7059

Modularity 0.16 0.55 0.5951

aAdjustedr2of 0.49,F(2,8)

ˆ5.72,p< 0.05. bAdjustedr2of

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in apparently mitigating the effects of complexity, and modularity positively impacts highly ambiguous pro-jects. The converse is not true ± con¯ict resolution does not strongly interact with ambiguity to counteract its negative effects, nor does modularity interact strongly with complexity to mitigate its effects.

The whole-sample MRA analysis indicates that this effect operates through the error terms, by affecting the strength rather than the form of the relationship of the independent variables to client information satis-faction. Con¯ict resolution and, to a lesser extent, modularity, are homologizer moderators with no direct relationship to either the independent or depen-dent constructs.

For practitioners, the lesson is clear. First, take time to identify those projects that are high in complexity and ambiguity. Team members and leaders are often aware of these conditions and are a good source for this information. Users also may well understand the potential complexities and ambiguities of a software development effort. Such identi®cation processes should become a routine aspect of application portfo-lio development. Once these projects have been iden-ti®ed, corrective action can be taken, as suggested by this research. Foster con¯ict resolution capabilities in project teams faced with highly complex projects. This could include formal training, tacit learning, and modi®cations to incentive systems. Many human resource departments provide training in this area, as do many consulting organizations. Team members should be made aware of the purpose for the trainings and the importance of con¯ict resolution, particularly for projects high in complexity.

Practitioners should also work to ensure that mod-ularity is being utilized in highly ambiguous software development projects. It is widely acknowledged that modularity can save time and, therefore, money during development. This study shows that modularity can increase system effectiveness also, for reasons con-sistent with current organizational theory. There are a number of CASE (computer-aided software engineer-ing) tools available in the market that have features that promote modularity of design and development. Team members in these teams should be instructed regarding the meaning of ambiguity, its potential deleterious effects on software development success, and the role that modularity can play in mitigating these negative effects.

4.4. Limitations

This study does not con®rm that feedback and con¯ict resolution behaviors actually reduce complex-ity, nor that modularity reduces ambiguity; only that, in the presence of high complexity, con¯ict-resolution behaviors have a positive impact on subsequent client satisfaction, and that, in the presence of high ambi-guity, modularity also has a positive impact on infor-mation satisfaction. A theoretical argument has been presented which associates these positive impacts with their capacity to mitigate or absorb the negative effects of task complexity and ambiguity, but the evidence does not go so far. Future research in this direction could con®rm these theoretical propositions through controlled experimental manipulations.

Client satisfaction is critical for systems success, and information satisfaction is especially important in this era of knowledge work and organizational learn-ing. However, another path for future research would be the addition of non-perceptual dependent measures and metrics to identify impacts of this model on technical success.

This study does not investigate mechanisms for complexity and ambiguity reduction at the boundary of the team. It seems likely that much effective ambiguity reduction occurs in interaction with those outside the team. Thus, the impacts of these behaviors by boundary spanners (externally-oriented team mem-bers) is another potentially fruitful direction for future research. Nor does it investigate small or large teams, focusing as it does on medium-sized teams. While we have no reason to believe that these results cannot be generalized to larger or smaller software development teams, our results cannot speak on this issue.

5. Conclusion

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chal-lenges. That which moderates complexity does not moderate ambiguity and vice versa. By operationaliz-ing con¯ict resolution and modularity as an informa-tion processing behavior and a technology, respectively, this research con®rms theoretical orga-nizational design prescriptions in a model that is parsimonious, yet highly signi®cant under the task conditions speci®ed.

Communication via rich information channels has been cited as a way to reduce task ambiguity. Within teams, much interaction occurs face-to-face and is thus already rich, so it is important to investigate alternative mechanisms for reducing task-related ambiguity. We do this by looking to the modules produced with process technologies as external man-ifestations of shared perceptions of desired outcomes. This conceptualization of modularity provides a the-oretical rationale for the widely acclaimed bene®ts of modularity technologies and contributes to the grow-ing body of research that ties tools and techniques to theoretical reasons for their effectiveness. The grow-ing popularity of object-oriented technologies moti-vates our continued theoretical interest in the phenomenon of modularity.

For practitioners, we present support for a contin-gency model which states that under conditions of high task complexity, con¯ict resolution is an effective team capability, while under conditions of high task ambiguity, modularity technologies are bene®cial, especially in conjunction with con¯ict resolution. While further research is needed to con®rm these prescriptions, this study paves the path for practi-tioners to enhance system development effectiveness by providing modularity capabilities to teams facing ambiguous projects, and by enabling con¯ict-resolu-tion behaviors within those teams facing highly com-plex projects.

Appendix A

Survey items (all seven-point Likert scales)

Ambiguity: (ˆ0.8117)

Please characterize the extent to which your project has the following characteristics:

1. To what extent do multiple views exist of how the ®nal system should look?

2. During system development, to what extent can information be interpreted in different ways, which can lead to different but acceptable solutions? 3. To what extent do multiple views exist of how the

®nal system should be developed?

Not at all ± very small extent ± some extent ± very great extent

Complexity: (ˆ0.8398)

Please characterize the extent to which your project has the following characteristics:

1. How technically complex is the system being developed?

2. To what extent are the technical problems for this system particularly complicated?

Not at all ± very small extent ± some extent ± very great extent

System success: (ˆ0.9472)

Please provide your impressions of how the present system satis®es your needs:

1. The system provides the precise information that I need.

2. The information content meets my needs. 3. I get the information I need on time.

N/A ± strongly disagree ± neither agree nor disagree ± strongly agree

Modularity: (ˆ0.8640)

How often does your project team perform this activity on the current project:

1. Develop modular, component-oriented application parts?

2. Maintain an inventory of reusable application com-ponents?

3. Create application system units from individual components?

Not at all ± very small extent ± some extent ± very great extent

Con¯ict resolution:

Please evaluate to what degree you feel the follow-ing statements describe your project team:

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2. This team resolves con¯icts that exist among team members in a timely manner.

3. This team ®nds ways to minimize tensions between members.

N/A ± strongly disagree ± neither agree nor disagree ± strongly agree

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