Formal Participation and Performance of the System Development Group: The Role of Group Heterogeneity and Group-Based Rewards

Abstract

This study examines the influence of two selected group structural characteristics on successful participation in system development. It draws upon work-group design research to develop and test nine hypotheses that link group heterogeneity and group-based rewards to participation and performance outcomes. Some interesting findings emerge from the study.The nature of the relationship between group heterogeneity and participation is not the same as that between group-based rewards and participation. Both heterogeneity and group-based rewards directly impact participation; and as participation positively impacts outcomes, both variables indirectly impact outcomes. In addition, group-based rewards have a direct effect on performance outcomes, while no direct effect is detected between heterogeneity and performance outcomes. Contrary to conventional wisdom, this study found the effect of group-based rewards on participation is not always positive. The study suggests that group-based rewards could suppress participation in heterogeneous system development groups. The study concludes with a discussion of the implications of these findings for managerial practice and future research.

Keywords: Information Systems Success, Systems Development Project, Participation, Heterogeneity, Group Rewards.