Antecedents of Internal Stakeholder Satisfaction of Agile Projects: Evidence from the Sri Lankan Software Industry

Internal stakeholder satisfaction is critical for project success. Adopting agile methodologies in software projects is perceived as a more adaptable approach than traditional project management methods, potentially leading to higher internal stakeholder satisfaction. However, numerous agile projects in the Sri Lankan software industry struggle with poor internal stakeholder satisfaction. Addressing this gap, the study has investigated the drivers of internal stakeholder satisfaction in agile projects within the Sri Lankan software industry. Accordingly, the five most appropriate practices – communication among internal stakeholders, frequent customer feedback, iterative development, collaboration, and flexibility to adopt customers’ late changes and a mediating factor – trust were identified, forming the basis for the conceptual framework. To evaluate it, the researchers analysed data from 137 internal stakeholders using multiple linear regression. The results showed that trustworthy communication, iterative development, and collaboration have a positive impact on internal stakeholder satisfaction, while mere communication among internal stakeholders, frequent customer feedback, and flexibility to adopt customers' late changes do not significantly impact internal stakeholder satisfaction in this context. The research provides valuable insights and practical recommendations to enhance internal stakeholder satisfaction in agile projects. Keywords: Agile Methodology, Agile Projects, Internal Stakeholder Satisfaction, Software Industry