Agile software development: Reusability and customizability is key to competitive advantage

Abstract

The study addresses the research issue of how software firms can compete in a dynamic industry through creating agile software development processes. It gives an insight into what a firm needs to do to equip its software process engineers to create flexible processes which can be customized specifically for the customer or reused for another customer without having to recreate them. Can these perceived process dimensions impact the competitive advantage of the firm? Survey design was used to collect responses from 100 software firms. Senior managers in the delivery departments were taken as respondents. The model and hypothesis were assessed on AMOS using structural equation modelling for path analysis. The results suggested that firms that can reuse the codes and customize the services specific to customers through training and development initiatives taken for employees are able to create competitive advantage in the industry. The improvement in the processes be having direct impact on the economic efficiency of the firm.