FROM CONTRACTS TO SPRINTS: IMPLEMENTATIONAL BARRIERS OF AGILE METHODS IN PUBLIC VERSUS PRIVATE CONSTRUCTION PROJECTS IN ISLAMABAD, PAKISTAN

Abstract

This research study explores how Agile Practice Maturity (APM) affects the performance of construction projects within the city of Islamabad, and whether the policy constraints imposed by the institution can explain the circumstances under which agile routines are effective and when they fail in practice. Although indicators of growing interest in agile-related notions are evident in the building industry, empirical data in emerging economies remain limited, particularly regarding the mechanisms of bureaucratic governance on the path linking the use of agile processes and project success (PS). Institutional Theory serves as the basis for the investigation, and the moderated mediation model (PROCESS Model 8) has been used. It hypothesizes that APM affects PS through Implementation Barriers (IB), and that the organizational factor Bureaucracy/Red Tape (BB) reinforces this mediation. The data were gathered through a cross-sectional survey administered to 390 structural professionals working on government and non-governmental projects in Islamabad. The questionnaire included psychometric measures: an APM practice-adoption index, an IB severity scale, a perceived red tape measure of BB, and a multidimensional PS measure. The results show that APM has a statistically significant positive direct impact on PS, thereby validating the potential of agile routines to improve project outcomes. Institutional Barriers (IB) are significantly improved by Bureaucracy/Red Tape (BB), which strengthens barriers and lengthens decision processes. IB also correlates positively with Perceived Success (PS), indicating complex ecosystems and stricter governance, reflecting managerial efforts. Moderated mediation shows that Agile Project Management (APM)’s indirect effect on PS via IB depends on BB’s strength, highlighting the importance of the institutional environment in agile maturity. The study suggests that enhancing PS to achieve situational agility requires adopting agile practices and governance, and that success is also influenced by the broader context.