Factors Influencing Adoption of Agile Project Management in Construction Industry

Abstract

Construction industry is a labor-intensive industry defined by its capability to deliver complex and unique projects with stringent quality requirements against constrained time and cost parameters. In civil construction projects, project uncertainties, strong customer demands, technological disruptions and challenging environments demand a more adaptive approach to civil construction. Agile approaches are a proven project management technique that has given rise to a more adaptive approach and successful outcomes to software development projects. Today, project teams use agile methodologies in several industries beyond software development to meet customer demands in an environment disrupted by advanced technology. Past literature suggests that even though extensive evidence exists about effective use and benefits of agile project management approaches in the software industry, there is a lack of empirical studies in the construction industry and projects. Using data from 530 respondents from different industries and geographic regions, we have tested the main factors influencing adoption of agile project management and further examined the moderating effects of other variables. Our findings suggests that people factors, agile practices and Construction 4.0 (technologies that digitize, automate and integrate the construction process) are the main drivers of agile project management in construction industry. Further, factors such as organization culture, business needs, project characteristics & close communication influences agile project management in construction industry.