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This paper reports an empirical investigation focusing on the effects of the information processing on the performance of inter-organizational collaboration. Inter-organizational information processing addresses the information exchange, as well as information utilization across organizational boundaries. Using these, and other factors associated with information processing capability (IPC) and good management practices, the paper proposes and tests several important hypotheses confirming how a higher level of inter-organizational IPC relates to a higher level of software development performance. The results also depict the significant contributors to the information processing capacity in a collaborative software development.
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