DIFFERENCES IN BUDGET AND TIME SUCCESS BETWEEN AGILE, HYBRID, AND WATERFALL APPROACHES IN ICT-SUPPORTED SME PROJECTS

Abstract

Information and communication technology (ICT)–supported projects within small and medium-sized enterprises (SMEs) experience disproportionately high failure rates when compared to large organizations, often due to method selection, resource constraints, and evolving project environments. Choosing an appropriate project management methodology represents a critical strategic decision that directly affects budget performance and schedule adherence—two core dimensions of the “iron triangle.” This paper examines the differences in budget and time success among Agile, Hybrid, and Waterfall project management methodologies in SME ICT projects. Drawing on the principles of Success Management Theory (SMT), the study positions project success as a multi-dimensional construct shaped by stakeholder expectations and dynamic project conditions rather than by methodology alone. A comprehensive literature review is conducted to explore existing empirical and theoretical findings on methodology selection, schedule performance, cost performance, and contextual moderators such as complexity, management support, and clarity of goals. The paper employs a quantitative comparative analytic framework grounded in prior dissertation findings, extending them with additional secondary data and synthesized empirical results from peer-reviewed 2020–2024 research. Findings suggest that methodology does not independently predict budget or schedule performance in SME ICT projects. Instead, the dominant predictors of time and cost success are organizational maturity, stakeholder engagement, clarity of requirements, and adaptability to evolving conditions. Agile shows improved performance in high-uncertainty environments, Waterfall performs better in stable and regulated contexts, and Hybrid only outperforms others when organizations have the maturity to integrate its dual structures. This paper argues that the relationship between methodology and project success is conditional rather than direct. The discussion includes implications for project managers, SME leadership, policymakers, and future research.