Overall, a leaning towards DCR decentralization and DMR centralization places each class of decision rights closer to the locus of the primary type of knowledge that is needed to exercise them and also mitigates agency problems. However, it paradoxically introduces a challenge for ISD because unexplicated knowledge relevant to both project DCRs and DMRs is dispersed across the IT and client departments . Two types of knowledge are relevant to the ISD process: (1) technical knowledge, which is defined as knowledge about design, programming, and software development processes, and (2) business application domain knowledge, which is defined as knowledge about the business processes, business rules, policies and procedures, and the business objectives associated with the project’s problem domain. The former type of knowledge resides primarily—but not exclusively in the IT unit and the latter in the client department, consistent with the logic of departmental specialization in complementary but differentiated activities . For example, the client department is likely to better understands what the application should do to support its associated business processes, i.e., has higher knowledge of the business application problem domain . Likewise, the IT department is likely to have better knowledge of how to design and build the application, i.e., has greater technical knowledge. However, when an activity requires coordination of multiple interdependent knowledge bases, they are mutually complementary. In ISD projects, technical and application domain knowledge are complementary because both must be utilized in the development process to devise an effective ISD solution . Although both departments are likely to have the primary type of knowledge necessary for exercising the decision rights for which they are likely to have greater responsibility, neither is likely to possess the full range of complementary expertise required to effectively exercise either class of decision rights .