The effect of process tailoring on software project performance: The role of team absorptive capacity and its knowledge‐based enablers

Software process tailoring (SPT) is a team‐based and learning‐intensive activity that addresses the particular dynamic characteristics of a development project. Because SPT critically influences how projects are conducted, its performance should be investigated. However, the extant literature lacks empirical evidence on how the underlying effects of SPT performance and its team‐supportive factors operate and influence software project performance. From the knowledge perspective, this study adopts dynamic capabilities theory and considers the learning ability and absorptive capacity of software project teams to develop a theoretical model to address this gap. The results of an empirical examination of the model with 135 software project teams advance our understanding of how team‐level learning antecedents—experience, communication quality and trust—dynamically facilitate teams' absorptive capacity (AC) when they conduct SPT, which in turn reinforces project performance. The mediating effects of the proposed model are unveiled and discussed, and theoretical implications as well as practical guidance for how AC and these factors promote SPT and project performance are suggested.