Consequences of Fit between Novelty and Peripheral Knowledge in Systems Development Projects

Abstract:     
This study addresses the theoretically-neglected question of when and why specialized IT and line functions should possess expertise in each others' domains. Such "peripheral knowledge" contradicts the premise of departmental specialization yet is widely observed. We develop the idea that IT and client departments' peripheral knowledge enhances project performance when it possesses "fit" with project novelty, and it does so by accelerating design convergence. Tests using data from 159 projects in 159 organizations support these ideas. Implications for theory and practice are also discussed.

Keywords: systems development, project novelty, novelty-knowledge fit, design convergence, iteration, project management

Working Paper Series