Abstract:
The rapid evolution of IT sectors requires effective and smart project management
methodologies to get better project performance. This study explores the interesting
interplay between agile practices and project performance while considering the combined
effect of team psychological empowerment, team cohesion, and team size. Agile
methodologies have revolutionized the IT sector in terms of performance because of their
flexible, iterative, and customer-centric nature. However, making teams psychologically
empowered by giving them a sense of autonomy, competence, meaningfulness, and impact
boosts the results of agile practice for improved project performance. We conducted this
study by extensively gathering data from 250 project managers working in Agile-based
organizations by using online survey forms. After that, we used structural equation
modeling to test our proposed hypotheses. Our analysis revealed that agile practices
significantly enhance project performance by fostering team psychological empowerment
and team cohesion within smaller teams. This study also highlights the importance of
optimal team size for greater impact. This study provides a roadmap for project managers
to understand the team dynamics and, the combined effect of team psychological
empowerment and team cohesion to get the best team performance and improved project
performance. Our research provided a new layer of understanding of the complex interplay
between our variables and offers actionable insights for the IT industry.
