Abstract

The study of IT development governance rests on the assumption of goal difference between the procurer (customer or user) and the provider (development organization). But governance research also finds that the knowledge of both parties must be incorporated in order to maximize decision effectiveness. The goal difference is resolved through governance forms that assign different decisions to the procurer and the provider. But this splitting of decision rights can impact how knowledge is shared. At the same time, unified teams are also capable of completing effective development projects as witnessed by the successes of agile development methodologies. These teams do not split decision rights and knowledge is more readily shared. Successful projects under one governance model may be identifiably different from successful projects under the other. This study extends governance research by understanding development project characteristics that indicate whether splitting decision rights is an effective strategy for a specific project.

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