Abstract

The increasingly dynamic external environment serves as one risk factor which undermines information system development (ISD) project performance. This highlights the importance of ISD teams having certain capabilities to respond to the external variations. In this study, we proposed that ISD teams can better react to external changes and achieve goals if they have sufficient dynamic capabilities: a combination of market/environment orientation, absorptive capacity, coordination capability and collective mind. We also proposed that a team has stronger dynamic capabilities when team members possess complementary expertise and know the expertise and tasks of others. In addition, after examining the moderating effect of knowing the expertise and tasks of others on the relationship between complementary expertise and team dynamic capabilities, we found that complementary expertise can substitute for knowing the location of expertise and complements knowing the tasks of others. Based on the results, implications for academia and practitioners are also provided.

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