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Information system development (ISD) is knowledge-intensive and contains a series of problem-solving activities. Insufficient knowledge stock is a major risk factor in ISD and results in low performance by undermining problem-solving competence. By taking an absorptive capacity perspective, this study proposes that potential absorptive capacity can directly increasing available knowledge on project performance. This study further uses the mediated moderating concept and proposes that realised absorptive capacity benefits project performance indirectly on problem-solving competence. Survey data collected from 194 ISD teams were used to validate these assumptions. The results indicated that ISD project teams can enrich knowledge stock by offering training, accessing external resources, and selecting the right members. Moreover, interrelating knowledge of individual team members can benefit project performance on problem-solving competence.

Examining the effect of absorptive capacity in information system development project team in Taiwan