Critical Success Factors for Agile Software Development

Abstract

Agile project management has gained substantial popularity in the IT sector over the years, particularly among software development organizations. The attainment of success in these endeavors hinges on various factors known as “critical success factors” (CSFs), a subject frequently explored in academia. Nonetheless, there is no consensus regarding their impact on agile software development. To address this gap, in this article, we aim to recognize and analyze CSFs in software development projects executed using agile methodologies. The study identifies 25 CSFs categorized into five categories based on the recent literature findings. A structured survey with seven-point Likert scale questionnaires is conducted among agile software development professionals, resulting in 121 valid responses. These responses are analyzed using structural equation modeling. The findings highlight that all constructs formed within the CSFs significantly contribute to the success of agile software development projects. Moreover, the study reveals that the positive effects of these CSFs on success follow a descending order: Project factors, people factors, organizational factors, process factors, and cultural factors. Intriguingly, when these CSFs are considered as a second-order construct, their impact is even more pronounced, suggesting a synergistic relationship among these elements. This research addresses a crucial scientific aspect in project management literature and also introduces a novel yet theoretically grounded model. The study demonstrates strong validity, reliability, and explanatory capabilities (56.1%) concerning the phenomenon. Additionally, it contributes to the discussion on CSFs by pinpointing statistically significant factors and gauging their individual and collective influence on the success of agile software development projects.