i IMPACT OF TECHNOLOGICAL AND CULTURAL CHANGE ON SOFTWARE ENGINEERS MASTER OF BUSINESS ADMINISTRATION IN INFORMATION TECHNOLOGY W.A.C.P Wickramanayaka Department of Computer Science & Engineering University of Moratuwa December 2009 ii IMPACT OF TECHNOLOGICAL AND CULTURAL CHANGE ON SOFTWARE ENGINEERS By W.A.C.P Wickramanayaka This dissertation was submitted to the Department of Computer Science & Engineering of the University of Moratuwa in partial fulfilment of the requirements for the Degree of MBA in Information Technology. Department of Computer Science & Engineering University of Moratuwa December 2009 i DECLARATION “I certify that this thesis does not incorporate, without acknowledgement, any material previously submitted for a degree or diploma in any university. To the best of my knowledge and belief, it does not contain any material previously published, written or orally communicated by any other person or me, except where due reference is made in the text. I also hereby give consent for my dissertation, if accepted, to be made available for photocopying and for interlibrary loans, and for the title and summary to be made available to outside organizations” …………………………… ………………………….. Signature of the Candidate Date To the best of my knowledge, the above particulars are correct. ……………………………. ………………………….. Dr. Buddhinath Jayatilleke Date Supervisor i ABSTRACT This study performs an in-depth analysis of the impact of technology change and organizational culture change on Software Engineers. Software Industry is fast moving and rapidly changing. The knowledge workers interact with computers and attempt to model a real world scenario in intangible computer software. This process is not made easier by the evolution of software technology, new hardware and various process methodologies. Software Engineers today need to have the ability to grasp new technologies and make use of them. Culture of an organization is the heart of what employees believe in. Organizational culture is defined as a way of life characterized by certain sets of behavior, assumptions, beliefs and attitudes. It is found that the organizational culture has a significant impact on the organizational effectiveness and the success. The author presents an experiment and an analysis to find the impact of technological and cultural change on Software Engineers. This impact is studied in view of motivation and turnover intention of the Software Engineers. Hypothesis tests are performed in order to find the significance of this impact. The results of the study show that there is a positive effect from technological change on Software Engineer‟s motivation and a negative effect from culture change on Software Engineer‟s motivation. Technology change does not seem to have a significant effect on Software Engineer‟s intentions to leave the organization but when it comes to the change of culture there is a significant effect. The Software Engineers wish to leave their organizations if a culture change is more frequent. The study concludes with recommendations of best practises to follow when technological and cultural change is needed. ii ACKNOWLEDGEMENT First of all, I would like to give my acknowledgement to Dr.Buddhinath Jayatilleke. In the initial proposal itself he saw my research problem as an interesting area, encouraged and guided me from the start till the end. He was both flexible and genuine in stating his opinion on the work and motivated me. I would like to specially mention Mrs. Vishaka Nanayakkara and department of Computer Science for helping and guiding me along the path to completion of the research. If it‟s not for your patience and encouragement this would not be completed. I would like to thank my family and my friends for bearing with me all this time when I was not able to spend time with them. They understood the situation and encouraged me to finish the work. I would like to acknowledge my parents, for encouraging me when I needed the most. Thank you, Damtih Pathirage for the support you have given me to find resources in order to do a successful literature review. I would also like to show my gratitude to Mr. Gayath Rathnayaka and Mrs. Shiroshika de Silva for the feedback given on my work and specially for stating their honest opinion. Last but not least to Deepthini Lanasakra for motivating me from the start till the very end. iii TABLE OF CONTENTS ABSTRACT .................................................................................................................... i ACKNOWLEDGEMENT ............................................................................................. ii TABLE OF CONTENTS .............................................................................................. iii LIST OF FIGURES ...................................................................................................... vi LIST OF TABLES ....................................................................................................... vii CHAPTER 1: INTRODUCTION .................................................................................. 1 1.1 Background .............................................................................................................. 1 1.1.1 Introduction.................................................................................................... 1 1.1.2 Motivation...................................................................................................... 2 1.2 Research Topic ......................................................................................................... 3 1.2.1 Problem Statement ......................................................................................... 3 1.2.2 Research Objectives....................................................................................... 3 1.2.3 Significance of Study ..................................................................................... 3 1.3 Research Methodology ............................................................................................ 4 1.4 Nature and Form of Results ..................................................................................... 5 CHAPTER 2: LITREATURE SURVEY ....................................................................... 6 2.1 Technology Change ................................................................................................. 6 2.1.1 Technology change in general ....................................................................... 6 2.1.2 Relationship of technological change with personal attributes ..................... 8 2.1.3 Effects of technology change......................................................................... 8 2.2 Cultural Change ....................................................................................................... 9 2.2.1 Cultural change in general ........................................................................... 10 2.2.2 Obstacles to change culture ......................................................................... 11 2.2.3 Cultural dimensions ..................................................................................... 13 2.2.4 Factors supporting change of culture in practice ......................................... 15 iv 2.3 Motivation .............................................................................................................. 15 2.3.1 Motivation in Software Engineers context .................................................. 16 2.3.2 Motivation in detail...................................................................................... 17 2.3.3 Effects of demotivation ............................................................................... 18 2.4 Turnover Intention ................................................................................................. 19 2.4.1 Effects of turnover intention ........................................................................ 20 CHAPTER 3: RESEARCH METHODOLOGY ......................................................... 21 3.1 Theoretical background.......................................................................................... 21 3.1.1 Technology change dimension .................................................................... 21 3.1.2 Cultural change studies in general ............................................................... 21 3.1.3 Dimensions of motivation ........................................................................... 22 3.1.4 Turnover intention dimensions .................................................................... 22 3.2 Relationship of Variables ....................................................................................... 22 3.3 Research Approach ................................................................................................ 23 3.3.1 Conceptual framework................................................................................. 23 3.3.2 Research Hypothesis .................................................................................... 24 3.4 Research Design ..................................................................................................... 26 3.4.1 Research Instruments ................................................................................... 26 3.4.2 Operationalizing the variables ..................................................................... 26 3.5 Sampling Design .................................................................................................... 28 3.5.1 Sample size .................................................................................................. 28 3.6 Data Collection ...................................................................................................... 28 3.6.1 Interviews .................................................................................................... 28 3.6.2 Questionnaire ............................................................................................... 29 v 3.7 Data Analysis ......................................................................................................... 29 3.7.1 Checking the reliability of the Questionnaire .............................................. 29 3.7.2 Descriptive analysis ..................................................................................... 30 3.7.3 Statistical analysis ........................................................................................ 30 CHAPTER 4: DATA ANALYSIS .............................................................................. 31 4.1 Reliability of the Research ..................................................................................... 31 4.2 Descriptive Analysis .............................................................................................. 32 4.2.1 Analysis of demographic variables .............................................................. 32 4.2.2 Descriptive statistics of the constructs ......................................................... 34 4.3 Statistical Analysis ................................................................................................. 42 4.3.1 Relationship of technology change and Software Engineer‟s motivation ... 42 4.4 Overall Results of the Study .................................................................................. 49 CHAPTER 5: CONCLUSIONS & RECOMMENDATIONS .................................... 50 5.1 Recommendations .................................................................................................. 51 5.2 Limitations of this Study ........................................................................................ 53 5.3 Further Research .................................................................................................... 54 REFERENCES: ........................................................................................................... 55 APPENDIX 1 ............................................................................................................... 60 vi LIST OF FIGURES Figure 2.1: Software Engineer motivators .................................................................. 17 Figure 3.1: Conceptual Framework ............................................................................. 24 Figure 4.1: Working experience .................................................................................. 33 Figure 4.2: Educational background ............................................................................ 33 Figure 4.3: Type of the organization ............................................................................ 34 Figure 4.4: Histogram of culture change construct ...................................................... 39 Figure 4.5: Histogram of technological change ........................................................... 40 Figure 4.6: Histogram of motivation construct ............................................................ 40 Figure 4.7: Histogram of turnover intention construct ................................................ 41 Figure 4.8: Media of staying up to date with latest technology ................................... 41 Figure 4.9: Technology change against motivation ..................................................... 44 Figure 4.10: Culture change against motivation .......................................................... 45 Figure 4.11: Culture change against turnover intention ............................................... 48 vii LIST OF TABLES Table 2.1: Obstacles of culture change ........................................................................ 12 Table 3.2: Relationship of the questionnaire with conceptual framework .................. 27 Table 4.1: Reliability statistics of constructs for the questionnaire ............................. 31 Table 4.2: Descriptive of motivation ........................................................................... 35 Table 4.3: Descriptive statistics of cultural change ..................................................... 37 Table 4.4: Descriptive statistics of technological change ............................................ 38 Table 4.5: Descriptive statistics of turnover intention ................................................. 39 Table 4.7: Correlation between technology change and motivation ............................ 42 Table 4.8: ANOVA report of technology against motivation ...................................... 43 Table 4.9: Correlation between culture change and motivation .................................. 44 Table 4.10: ANOVA statistics of culture change and motivation ............................... 45 Table 4.11: Correlation of technology change and turnover intention ........................ 46 Table 4.12: Correlation of culture change and turnover intention ............................... 47 Table 4.13: ANOVA of culture change and turnover intention ................................... 48