Abstract

Information systems development (ISD) success hinges upon the creation and maintenance of a supportive climate. Yet how team members’ psychological climate (individual perceptions of the organizational context) is developed remains unanswered. This study contributes to understanding how relationships with co-workers are antecedents to a supportive psychological climate that in turn impact ISD project performance. Hypotheses are developed and tested using social network data from 172 dyads between employees and project managers of an information technology (IT) organization in the Southeastern United States. Results from PLS show that as hypothesized friendship and trust have a direct positive relationship and expertise has a direct negative effect with psychological climate. Further, trust positively moderates the relationship between expertise and psychological climate. Finally, psychological climate has a direct positive relationship with project performance controlling for gender, job tenure, age and race. Surprisingly, advice ties and advice ties moderated by trust did not relate to psychological climate as hypothesized. Implications of the findings are discussed.

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