When should software development teams have the flexibility to modify their directions and how do we balance that flexibility with controls essential to produce acceptable outcomes? We use dynamic capabilities theory and an extension of control theory to understand these questions. This work is examined in a case study. Our results demonstrate that flexibility may be needed when the starting conditions are uncertain and that effective control in these situations requires use of traditional controls plus a new type of control we term emergent outcome control.

As organizations implement more and more distributed work arrangements such as telecommuting, there is a need to understand the determinants of success of this new work setting. This research investigated three variables believed to impact outcomes in telecommuting: the availability of information system technology, the availability of communication technologies, and the communication patterns of telecommuters within their work groups. Two perspectives are used in this study. The direct effects of these three variables on perceived productivity, performance, and satisfaction were tested. A second perspective, based on the concept of fit and contingency theory, posits that successful telecommuting outcomes, measured by perceived productivity, performance, and satisfaction, are predicted by interactions between these independent variables. The study was conducted by surveying multiple respondents from different organizations who were members of work groups in which some or all employees were telecommuters. The results indicate that technology variables positively impact productivity, performance, and satisfaction of telecommuters, while the interaction between the technology variables is significant in predicting perceived productivity. Work group communication, as measured by the centrality of individuals, negatively affects perceived productivity and performance. The paper presents a discussion of the theoretical significance of these findings, and offers recommendations for future research.

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