A Preliminary Analysis of Communication Methods in Agile IS Development for Controlling Information Asymmetry

Agile information system development (ISD) projects are often characterized by high levels of information asymmetry, a condition when one party has imperfect information about the other. This condition can negatively affect IS development, especially in the agile context, which promises fast development cycles and the ability to cope with frequently changing requirements. The party with imperfect information is likely to develop concerns due to the uncertain or unobservable capabilities of actors or the assumed opportunistic behavior of those with private information. While communication methods in agile ISD have been well documented, extant research has neglected to address which of these are best at controlling information asymmetry in different circumstances. This research-in-progress draws on qualitative data to explore information asymmetry concerns and offer guidance to managers in selecting the appropriate communication methods under given conditions. Preliminary findings also suggest that information asymmetry may not always be harmful, which promises important theoretical and practical implications.