Abstract
This study draws on the literature on psychological empowerment to conceptualize agile practices as a source of intrinsic motivation that enables the agile teams to deliver innovative outcomes. Then, drawing on the resource based view of innovative projects, the innovative behaviour of agile teams is cast as a project capability that affects project performance. To test this original conceptualization, data was collected to find support for the hypothesized relationships between agile practices, psychological empowerment, innovative behaviour and project performance. The statistical results showed that the agile practices of team autonomy and agile communication contributed to psychological empowerment that led to the innovative behaviour of agile teams. The innovative behaviour also affected project performance. The empirical validation of agile practices as a source of empowerment and motivation for agile teams is a new finding in the literature which has strong implications for both the theory and practice.
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