Agile Contract Templates’ Management of Asset Specificity, Uncertainty and Performance Ambiguity
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- Master of Science 
The majority of today’s firms must take a stand to Industry 4.0, and how they can digitalize their business. Large investments in ICT projects are therefore made by customers of technological solutions, but reports find that there are numerous examples of budgetary transgressions and other factors that contributes to failed projects. As a response to the need for better methods in ICT development projects, the Agile method for software development emerged, aiming for endsolutions to be developed during a project in order to satisfy the customer by creating a better value outcome. Further, Transaction Cost Economics (TCE) note that there are several transaction hazards that can affect a buyer-supplierrelationship, thus different governance mechanisms to cope with these. The aim of the study is to answer the research question: How does agile contract templates cope with transaction hazards in ICT projects, and how does that affect when to use the contracts? Linked to the research question are three transaction hazards found in TCE, which we divide in three sub-questions: 1. How does the agile contract templates cope with asset specificity? 2. How does the agile contract templates cope with uncertainty? 3. How does the agile contract templates cope with performance ambiguity? The research question is answered with a qualitative research method, where the data sources consist of agile contract templates and interviews. The result of the study finds that the agile contract templates differ in their degree of enabling software development based on the Agile method, which in turn effect how the templates cope with the transaction hazards. However, independent of which agile contract template being used, we find that good project management, relational governance and high customer competency cope with the three transaction hazards to the highest degree. Further, we find that the customer who desires a more agile project and is able to bear the responsibility of risk elements should choose SSA-S, whereas the customer with higher risk-aversion and requirements of a rigid framework should choose PS2000 Agile.
Masteroppgave(MSc) in Master of Science in Strategic Marketing Management - Handelshøyskolen BI, 2018