Structural analysis of the impact of knowledge creation and knowledge embedding on software process capability

Improving the capability of the development process has emerged as an important strategy for addressing recurring problems in software development, such as poor quality, high development costs, and long delivery lead times. While a number of normative software process models have been proposed, limited theory development has occurred. This study adopts a knowledge management perspective to examine the antecedents of software process capability. Synthesizing prior research in total quality management (TQM), software engineering and knowledge management, it is posited that creation of process knowledge and embedding the knowledge in the process are important antecedents of software process capability. Two models that relate these antecedents to software process capability are tested using data collected from information systems (IS) units in Fortune 1000 firms. The first model is a direct-impact model, which posits that both knowledge creation and knowledge embedding have a direct and positive impact on software process capability. The second model is a mediated-impact model, which posits that knowledge embedding completely mediates the relationships between knowledge creation and software process capability. The results provide strong support to the mediated-impact model suggesting that the extent to which knowledge is embedded in the process has a significant positive effect on software process capability. The results also suggest that the stock of knowledge embedded in the process is influenced by the extent to which knowledge is created in the context of the development process. Implications of these findings for IS research, theory, and practice are discussed.