Abstract

Software development group effectiveness depends on many factors, and understanding those factors is vital to project success, especially when considering the time and money that is dedicated to said projects. Therefore, this study examines the role of worker tenure and employment heterogeneity on exploration and exploitation work completed within an organization’s software development group. Analysis of time tracking data within one financial services organization over a three years period demonstrates that worker tenure and employment heterogeneity do play an important role in shaping work activities. Worker tenure exhibited a negative relationship with exploration and exploitation activities, suggesting a critical mechanism through which an organization can elicit innovative and incremental development efforts. Further, the positive effect of employment heterogeneity on exploration and exploitation suggests that employment diversity can also provide a means to encourage innovative and incremental development activities. Findings highlight the notion that group composition plays a meaningful role in shaping the focus of software development work within an organization.

Highlights

  • Research on software development has a rich history, often with a focus on issues such as development methodologies (Lindstrom & Jeffries, 2004), project management practices (Verner & Evanco, 2005), design patterns and organizational outcomes (Gopal, Krishnan, Mukhopadhyay, & Goldenson, 2002)

  • Technical and procedural issues certainly play an important role in shaping the effectiveness of a software development group, but productivity is largely impacted by dynamics within the group

  • Outcome variables utilized in this study address exploration and exploitation activities within the organization, expressed through actual work completed by software developers between 2005 and 2007

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Summary

Introduction

Research on software development has a rich history, often with a focus on issues such as development methodologies (Lindstrom & Jeffries, 2004), project management practices (Verner & Evanco, 2005), design patterns and organizational outcomes (Gopal, Krishnan, Mukhopadhyay, & Goldenson, 2002). Technical and procedural issues certainly play an important role in shaping the effectiveness of a software development group, but productivity is largely impacted by dynamics within the group. While researchers have examined the impact of group dynamics on software developer activities, issues such as group composition remain understudied and deserve greater attention (Moreland, Hogg, & Hains, 1994). An organization’s software development function can provide the digital options necessary to achieve long term success in the marketplace (Sambamurthy, Bharadwaj, & Grover, 2003). An ineffective software development function can hamper the development and utilization of organizational knowledge and prevent timely responses to market changes (Lyytinen & Robey, 1999)

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