2009 ICSE Workshop on Software Development Governance 2009
DOI: 10.1109/sdg.2009.5071331
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Software development under bounded rationality and opportunism

Abstract: Due to the wicked nature of software development, it is imperative to take into consideration bounded rationality and opportunism of the agents involved in, when managing software development projects. These two concepts, which are at the foundations of transaction cost economics, have not yet been studied in relation to software engineering. In this paper, we develop transaction cost economics approach to software engineering, specifically as it relates to governance.This approach enables us better understand… Show more

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Cited by 7 publications
(13 citation statements)
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References 7 publications
(9 reference statements)
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“…Coordination and administrative loads of bottom-up construction place it at a disadvantage at k=0, but the cost differences between D(k) and C(k) narrow as asset specificity rises and reverse as the need for cooperative adaptation exceeds a threshold k>k2. Topdown decomposition can be viewed as hybrid mode of development, as incentive intensity and administrative control take on intermediate values (Erbas and Erbas, 2009). The proposed approach may serve as a foundation for a unified theory in software engineering.…”
Section: Software Development Methodsmentioning
confidence: 99%
See 1 more Smart Citation
“…Coordination and administrative loads of bottom-up construction place it at a disadvantage at k=0, but the cost differences between D(k) and C(k) narrow as asset specificity rises and reverse as the need for cooperative adaptation exceeds a threshold k>k2. Topdown decomposition can be viewed as hybrid mode of development, as incentive intensity and administrative control take on intermediate values (Erbas and Erbas, 2009). The proposed approach may serve as a foundation for a unified theory in software engineering.…”
Section: Software Development Methodsmentioning
confidence: 99%
“…Components are implemented one at a time and the system is re-factored when required. This approach expects the parties to be open to cooperative adaptation; but it is unable to control costs as well as the top-down governance structure (Erbas and Erbas, 2009). …”
Section: Governance Structures In Software Engineeringmentioning
confidence: 99%
“…Our approach, in this paper, relies on leveraging transaction-cost economics (TCE) to identify building blocks for a theory of software engineering [11][12][13]. TCE studies the organization of business transactions between a supplier and a client.…”
Section: Related Workmentioning
confidence: 99%
“…Several approaches for software development governance were suggested, e.g. based on incremental commitment model [7], using decision rights automation [8], linking long-term business with release planning [9], and using the transaction cost approach [17]. Quite a few articles explore software development governance in agile development [9,10,11,12,13,14], yet they do not focus on large-scale hardware-dependent contexts.…”
Section: Background and Related Workmentioning
confidence: 99%