Abstract-To produce high quality object-oriented (OO) applications, a strong emphasis on design aspects, especially during the early phases of software development, is necessary. Design metrics play an important role in helping developers understand design aspects of software and, hence, improve software quality and developer productivity. In this paper, we provide empirical evidence supporting the role of OO design complexity metrics, specifically a subset of the Chidamber and Kemerer suite, in determining software defects. Our results, based on industry data from software developed in two popular programming languages used in OO development, indicate that, even after controlling for the size of the software, these metrics are significantly associated with defects. In addition, we find that the effects of these metrics on defects vary across the samples from two programming languages-C++ and Java. We believe that these results have significant implications for designing high-quality software products using the OO approach.

M easures to extend the economic lives of products-such as remanufacturing carried out by closed-loop supply chains-are receiving increased attention because of various economic and regulatory factors. In this paper, we examine drivers of price differentials between new and remanufactured products using data on purchases made on eBay. Our analysis shows that seller reputation significantly explains the price differentials between new and remanufactured products. We also find that products remanufactured by original equipment manufacturers or their authorized factories are purchased at relatively higher prices than products remanufactured by third parties. However, in the presence of these reputation signals (seller reputation and remanufacturer identity), we find that stronger warranties are not significantly associated with higher prices paid for remanufactured products. Our work contributes to the closed-loop supply chain research stream in operations management by empirically examining market factors that have not been studied before.

karhade@ust.hk T he complexity and scope of outsourced information technology (IT) demands relationship-specific investments from vendors, which, when combined with contract incompleteness, may result in underinvestment and inefficient bargaining, referred to as the holdup problem. Using a unique data set of over 100 IT outsourcing contracts, we examine whether contract extensiveness, i.e., the extent to which firms and vendors can foresee contingencies when designing contracts for outsourced IT services, can alleviate holdup. While extensively detailed contracts are likely to include a greater breadth of activities outsourced to a vendor, task complexity makes it difficult to draft extensive contracts. Furthermore, extensive contracts may still be incomplete with respect to enforcement. We then examine the role of nonprice contractual provisions, contract duration, and extendibility terms, which give firms an option to extend the contract to limit the likelihood of holdup. We also validate the ex post efficiency of contract design choices by examining renewals of contracting agreements.

Cap and trade programs impose limits on industry emissions but offer individual firms the flexibility to choose among different operational levers toward compliance, including inputs, process changes, and the use of allowances to account for emissions. In this paper, we examine the relationships among (1) levers for compliance (at-source pollution prevention, end-of-pipe pollution control, and the use of allowances); (2) environmental performance; and (3) firm market performance for the context of stringent cap and trade regulation with allowance grandfathering (i.e., the allocation of allowances for free). To investigate these relationships, we use data on publicly traded utility firms operating coal-fired generating units regulated by the U.S. Acid Rain Program from three principal sources: the U.S. Energy Information Administration, the U.S. Environmental Protection Agency, and the Compustat database. Our results indicate a significant relationship between better environmental performance and lower firm market performance over at least a three-year period. From a regulatory perspective, our results show a negative association between allowance grandfathering and firm environmental performance. Overall, by explicitly considering the context of stringent regulation, we find a counter-example to the view that better environmental performance generally associates with better economic performance

Introduction It is commonly acknowledged that success in IT projects is difficult to achieve. A recent industry survey observed that only 34% of IT projects were considered successful. Of the several potential factors contributing to this hard-to-achieve success, user involvement was noted as the most important one. Consistent with this notion, both researchers and practitioners have viewed user participation as an important way of improving software quality and increasing user satisfaction and acceptance. Users/customers are often encouraged to participate and directly communicate with developers in the software development process. On the other hand, empirical evidence shows that user participation in the development process can negatively influence project performance since it could make the process more difficult, lengthy, and less effective. Such contradictory findings raise the question of when user participation is actually helpful and when it might negatively impact project performance. Previous research tells only one side of the story since it has examined user participation or project performance by focusing primarily on user viewpoints. The findings give an incomplete picture since they have not thoroughly addressed developer viewpoints. Clearly, there is a need to investigate software project success from the perspective of developers given that not only are they at the core of development process but they also represent the largest single cost in software development. Developer satisfaction is imperative for systems development success. Dissatisfied developers would adversely affect the quality of software as well as the productivity of development teams. A high rate of developer turnover in projects (due to dissatisfaction) could lead to increasing costs for development firms as well as high user/customer dissatisfaction. Due to the differences in background and circumstance, developers and users often share different and sometimes conflicting interests during software development. Researchers have identified a large gap in perceptions and definitions of project success between developers and the software industry (for example, users/customers). For example, developers tend to be achievement-oriented and are intrinsically motivated to develop excellent software, while users/ customers emphasis more on meeting a schedule or maintaining a budget. Thus, the potential conflicting interests between users and developers might negatively affect the software development performance. This article addresses the question of the relative effectiveness of user participation by empirically examining the perceived software project performance (for example, satisfaction) from both user and developer perspectives simultaneously. We used survey data from 117 software development projects and 746 respondents at a large Fortune 100 manufacturing firm during a four-year time period to investigate the impact of user participation on the satisfaction of both developers and users. Our findings offer insights into the impact of user participation on generating higher levels of developer and user satisfaction and, at the same time, minimizing the perception gap between users and developers on project performance. In addition, we also study the role of software complexity (for example, whether projects involve new software development as opposed to maintenance of existing software) in user participation and its effect on satisfaction. Questionnaire data was collected from 453 software developers and 293 users/customers working on 117 software projects (for details of the data collection process, see the sidebar "How the Survey was Conducted"). The average number of developer survey respondents per project (for example, team) was four and the average number of user/customer respondents per project was three. Our analysis was performed at project level, and satisfaction scores for developers and users were averaged for each project. Of the 117 software development projects, 45 (39% of our sample) were maintenance projects and 72 (61%) were new development projects. The average software development time of the 117 software projects was 126 days. Figure 1 outlines the project characteristics in our sample. The most common business domain for our software projects was the manufacturing and supply chain (41 projects, 35%) and most of the projects were Web-based applications (78 projects, 66%).

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Some firms adopt dual (IS-conservative-like and IS innovator-like) strategies. The behavior of firms that adopt a dual IS strategy is associated with the following characteristics: they (1) adhere to dual goals with a simultaneous emphasis on efficiency improvements and cautious exploration of new opportunities, (2) adopt a relatively formal decision-making structure, and (3) are inherently risk averse. Dual goals are likely to exert a conflicting influence on the behavior of firms that adopt both IS conservative-and IS innovator-like strategies. Balancing dual goals can be cognitively demanding and thus we maintain that the complexity of the decision rationale applied by such firms is likely to be high. Thus, the communicability of this decision rationale is likely to be low. The consistency with which decision rules are applied by such firms in the process of managing these dual conflicting goals is likely to be low as applying the same rule with a high consistency would imply that one of the dual goals is most likely not being sufficiently addressed. Acting appropriately, decision makers with a low-risk appetite are expected to approve high-risk initiatives only after ensuring that risk mitigation mechanisms have been designed to lower the likelihood of failures (Boynton and Zmud 1987; March and Shapira 1987; Straub and Welke 1998). In summary, the decision rationale applied by firms that adopt dual IS conservative-and IS innovator-like strategies is likely to be complex, applied with a low consistency, and likely to focus on the assessment/mitigation of risks. Proposition 3: The decision rationale used by firms that adopt dual IS conservative-like and IS innovator-like strategies for IS portfolio prioritization is likely to be difficult to communicate, applied with low consistency and focused on risk assessment/mitigation.