Adopting Agile Project Management Methodologies During Digital Transformation: Impact on Overall SME Agility Post-COVID-19

• Asher Noah

  covenant University

  Author

The COVID-19 pandemic compelled small and medium-sized enterprises (SMEs) to accelerate digital transformation, yet the integration of Agile project management (APM) methodologies within these digitalization efforts and their combined effect on organizational agility remains insufficiently theorized and empirically tested. This study addresses the gap by examining how the adoption of APM practices during digital transformation initiatives influences overall SME agility in the post-pandemic period. A quantitative, cross-sectional survey design was employed, collecting data from 312 SMEs across manufacturing and service sectors that had undertaken digital transformation projects between 2021 and 2024. Structural equation modeling using partial least squares (PLS-SEM) was utilized to test the hypothesized relationships. The results indicate that APM adoption during digital transformation significantly and positively predicts organizational agility (β = 0.47, p < 0.001), with digital capability partially mediating this relationship. The model demonstrated strong explanatory power, accounting for 71.3% of the variance in post-COVID SME agility. Notably, the Random Forest benchmark validated the predictive robustness of the framework with a test R² of 0.6249, consistent with prior large-scale machine learning findings . The study concludes that APM functions as a capability-building mechanism that transforms project-level digital initiatives into firm-level adaptive capacity. Practitioners should prioritize iterative practices and cross-functional collaboration during digital transformation, while policymakers should support Agile training programs tailored to SME resource constraints.

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Copyright (c) 2026 Asher Noah (Author)

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