Critical success factors influencing agile software development projects: a theoretical and empirical investigation

Hanslo, Ridewaan

Critical success factors influencing agile software development projects: a theoretical and empirical investigation

Thesis / Dissertation

2025

Publisher

University of Cape Town

Department

Department of Information Systems

Faculty

Faculty of Commerce

Abstract

Context: Information systems are the infrastructure and service backbone for many of today's organisations. The Agile mindset to software development and project delivery has substantially improved project outcomes compared to traditional software development methodologies. However, while Agile projects are more successful than traditional approaches, the success rate is considered low, and the percentage of Agile projects deemed challenged and failed is still too high. This low project success rate is attributed to projects not being rigorously evaluated against critical success factors of Agile projects and contemporary project success criteria. Furthermore, criticisms of the status quo include the lack of rigorous research into the factors that improve Agile project success. Therefore, this study examines the critical factors influencing Agile software development project success against project success criteria through a theoretical and empirical investigation. Objective: To identify the critical success factors that contribute to Agile software development project success as perceived by Agile practitioners and explain how they contribute to project success. Method: This study used a positivist approach to investigate the critical success factors of agile software development projects. A systematic literature review was conducted to identify and synthesise previous research, providing input to the quantitative survey questionnaire to identify Agile practitioners' perceived critical factors contributing to project success criteria. Partial least squares structural equation modelling with SmartPLS was used to analyse the data and test the hypotheses to identify significant relationships between the constructs and project success criteria. Results: This research found that a few critical factors significantly contribute to Agile project success. The Agile team's skilled individuals and appropriate group dynamics significantly impact stakeholder satisfaction. How well project activities, processes, and phases are managed has a positive relationship with stakeholder satisfaction and the project schedule. In addition, having an organised system and control mechanisms contributes to adhering to project schedules and cost estimates. Contribution: The study developed a novel model that can be used to evaluate and measure project success. Furthermore, the critical success factor, socio-technical systems, and the complex adaptive systems theories were used to identify, describe, and explain how the few significant critical success factors contribute to Agile software development project success, providing novel insights. Conclusion: This research contributes to a parsimonious model of critical success factors for Agile software development projects. Furthermore, this study provides practical guidance for organisations seeking to improve project success. By focusing on team effectiveness, project governance, and project management, organisations can enhance stakeholder satisfaction and achieve better adherence to project cost and schedule constraints. This study's findings offer a nuanced understanding of the interplay between these critical success factors and project success criteria, providing insight from multiple theoretical lenses. Future research could explore the dynamic relationships between these factors and investigate their applicability across diverse project contexts