Control of Information Systems Development: Investigating the Relationship between Control and Performance

Organizational control, defined as efforts to increase the chances that employees of an organization work toward achieving organizational goals, is believed to have positive effects on performance. However, few studies have tested this assumption. This research draws on theories of control and coordination to investigate the relationship between control and information systems (IS) development performance.It consists of analyses of two research models, one at the individual level of analysis, and the other at the team level of analysis. The individual-level model investigates how control affects individual effort toward task and individual coordination success, and proposes that these relationships are moderated by controlees' perceptions of how effectively a controller can monitor their work behaviors and outcomes. The team-level model investigates two mediators through which control may affect IS development performance: team effort toward task, and team coordination success. A field survey was conducted, and completed matched survey responses from 106 managers and team members involved in 36 different IS development projects were used to test the hypotheses.The results suggest that control does have a positive relationship with effort toward task and coordination success. Specifically, clan control was positively associated with coordination success at the individual and team levels, and with team effort toward task. Outcome control was positively associated with individual effort toward task. In addition, the relationship between outcome control and individual effort toward task was moderated by team member perceptions of the difficulty of observing outcomes. At high levels of difficulty of observing outcomes, high levels of outcome control resulted in higher effort than at low levels of difficulty of observing outcomes.Control was also positively related to performance outcomes. Behavior control was associated with reduced overruns of resources such as time, budget, and systems and programming effort. Outcome control was positively associated with product performance, which represents the quality, ease-of-use, and functionality of the system developed or enhanced by the project. Clan control was associated with both improved product performance and reduced resource overruns.No support was found for mediation of the effects of control on performance by effort toward task or coordination success