Agile Projects in Nonagile Portfolios: How Project Portfolio Contingencies Constrain Agile Projects’ Teamwork Quality

Abstract

Agile practices present one approach for firms to adapt to an increasingly dynamic and competitive environment. Although prior studies have investigated performance outcomes of agile projects, agile practices’ consequences on a project team's collaborative processes have not yet been thoroughly analyzed. It also remains unclear whether practices on a higher organizational level, such as project portfolio management (PPM), support or constrain agile practices’ benefits, especially if a firm simultaneously conducts traditionally managed and agile projects. Therefore, this article investigates the role of agile practices for a project's teamwork quality (TWQ) and project success and examines the influence of organizational contingencies. Specifically, we conceptually and empirically analyze the moderating impact of PPM practices on the relationship between agile practices, TWQ, and project success. A multi-informant analysis of 378 projects nested in 100 portfolios shows that agile practices positively relate to project success through TWQ. We find that traditional PPM practices such as business case existence, strategic clarity, and operational control constrain this relationship. Our article contributes to the literature on project teams and portfolio management by providing empirical insights on the interaction between project and portfolio management practices.