64 Copyright © 2015, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 4 DOI: 10.4018/978-1-4666-7473-8.ch004 A Coordination Perspective on Agile Software Development ABSTRACT Achieving success in software development projects is a perennial challenge, and agile software devel- opment methods emerged to tackle this challenge. Agile software development provides a way to orga- nise complex multi-participant software development projects while achieving fast delivery of quality software, meeting customer requirements, and coping effectively with project change. There is little understanding, however, of how such projects achieve effective coordination, which is a critical factor in successful software projects. Based on evidence from four cases, this chapter presents a theory explain- ing coordination in agile software projects. This theory defines the concepts of coordination strategy and coordination effectiveness and propositions explaining their relationship. This theory contributes to coordination literature by presenting clearly delineated concepts and their relationships in the form of a variance theory. For IT project management, this theory contributes to knowledge of coordination and coordination effectiveness in the context of agile software development. INTRODUCTION How can software development projects be coordinated more effectively in the presence of uncertainty? (Nidumolu, 1995, p. 213) Agile software development offers an effective means of organising complex multi-participant software development while continuously adjust- ing to project uncertainty and change. While this approach is now widely accepted, it remains of intense practical and theoretical interest because of its impact on people, projects, and organisations (Ambler, 2009; Dyba & Dingsoyr, 2008; Strode, Huff, Hope, & Link, 2012; West & Grant, 2010). Agile software development differs significantly from earlier approaches to software development; because of this difference, adopting an agile approach can affect organisation structure and culture, project roles, contract negotiation, the Diane E. Strode Whitireia Polytechnic, New Zealand Sid L. Huff Ivey Business School, Canada