Systems development in organizations is well recognized as a knowledge-intensive eft'ort. Since the relevant application domain knowledge is thinly spread across an organization, the acquisition, sharing, and integration of knowledge are significant activities during the development process. Advocates of computer-aided software engineering tools (CASE) claim that these tools offer a potentially valuable feature for facilitating such knowledge integration and management activities: the central repository, which is a location for storing, retrieving, and maintaining a variety of applications development information. Yet, the effects of the CASE repository on the diffusion of the technology have received limited attention in prior research. This study examines whether the embedding of applications development knowledge witllin the CASE repository influences the diffusion of the CASE technology across applications projects in organizations. We develop a construct called knowledge embeddedness, which refers to the extent to which relevant applications development knowledge is systematically populated within the CASE repository. Based on data gathered from 168 organizations, through a large-sample survey of CASE user groups, we found strong support for the relationship between knowledge embeddedness and diffusion of CASE technology. These results have interesting implications for future research and practice. 1. INTROI)UCTI()N storing, retrieving, and maintaining a variety of applications development information (Martin 19908; 1990b). McCIure Systems development in organizations is well-recognized as a ( 1989) considers the repository to be "the heart of CASE," a knowledge-intensive effort, e.g., "knowledge is the raw material mechamsin for managing all information concerning a software of software design teams" (Walz, Elam, and Curtis 1993). Since systeiii. Yourdon ( 1992) calls the repository the "single most the relevant application domain knowledge is thinly spread across important technological development in the CASE an organization (Curtis, Krasner and Iscoe 1987), the acquisition, industry..today's CASE environinent could be regarded as a sharing, and integration of knowledge are significant activities SE repo number of tools cliistered around the repository (p. 137)." Such during the development process (Walz, Elam and Curtis 1993). claims imply that the CA sitory could play a key role in Advocates of computer-aided software engineering tools (CASE) influencing the diffusion of the technology within an claim that these tools offer a potentially valuable feature for organization's systems development projects. Yet, despite the facilitating knowledge integration and management activities: the growing volume of research on impacts of CASE (for instance, central repository or encyclopedia, which is a location for Banker and Kauffman 1991; Necco, Gordon, and Tsai 1989;
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