An Exploratory Study of the Impact of the Capability Maturity Model on the Organizational Performance of Indian Software Firms

Abstract

This study aims to determine the operating elements of various levels of the Capability Maturity Model (CMM®) and important indicators of organizational performance (IOPs) in the software industry. The various levels of CMM act as critical factors (CFs), which are the input variables necessary to implement CMM. IOPs are the output variables on which the effect of implementing CMM is measured. The current levels of presence of the CFs and IOPs and the changes in the CFs and IOPs due to CMM implementation were determined in this study using two types of scales, namely, level scale and change scale, in order to measure (or capture) and analyze the perception of respondents in this research. Many interesting and valuable insights are provided. It has been found that most of the firms find it easier to set standards than to improve further. Moreover, financial gains are not immediate, and firms must strive to continuously improve in order to gain financially from CMM implementation. The study also revealed that CMM implementation has a significant positive change on organizational performance.

• capability maturity model
• indicators of organizational performance maturity levels

Additional information

Notes on contributors

P. Padma

P. Padma is a doctoral student in the Department of Management Studies, Indian Institute of Technology Madras, Chennai, India. She holds a bachelor of engineering degree in civil engineering from Madras University, and a master of science (by research) degree in industrial management from IIT Madras. She is currently doing research for her thesis to be submitted for the award of doctoral degree in Indian Institute of Technology Madras. Her research areas are total quality management, service quality, and customer satisfaction. She has published articles in International Journal of Production Research and Benchmarking: An International Journal.

L.S. Ganesh

L. S. Ganesh is a professor of management in the Department of Management Studies, Indian Institute of Technology Madras. His research interests are in project management, knowledge management, technology management, and decision making. He teaches courses on data analysis for management, systems thinking, and project management. He has many publications in international journals such as International Journal of Production Research, European Journal of Operation Research, and International Journal of Production Economics.

Chandrasekharan Rajendran

Chandrasekharan Rajendran is a professor of operations management in the Department of Management Studies, Indian Institute of Technology Madras. His research interests are in total quality management (TQM), scheduling, and simulation. He has published several articles in international journals, including Quality Management Journal, Software Quality Professional, Total Quality Management and Business Excellence, International Journal of Production Research, International Journal of Service Industry Management, International Journal of Bank Marketing, and Journal of Services Marketing. He serves as referee for many journals. He is a recipient of the Alexander von Humboldt Fellowship of Germany. Rajendran can be reached by e-mail at [email protected].