System development effectiveness: An agency theory perspective

✍ Scribed by Adam S. Huarng

• Book ID: 103899206
• Publisher: Elsevier Science
• Year: 1995
• Tongue: English
• Weight: 599 KB
• Volume: 28
• Category: Article
• ISSN: 0378-7206
• DOI: 10.1016/0378-7206(94)00051-j

✦ Synopsis

Agency theory can be used to explain the effectiveness of system development methods. As the cost of computing decreases and end user computing technology becomes feasible, end-user departments are developing their own application systems. Agency theory suggests that end-users will desire greater autonomy over their computing in order to avoid the agency costs that arise in traditional MIS development. This study provides empirical support for the proposition that user development allows end-user departments to minimize the agency costs resulting from the work of the MIS department. Data were collected from 162 users of 59 different applications in 30 organizations. The results indicate that user development is more effective than MIS development. Among user-developed application systems, departmental applications are more effective than corporate applications.