Path Analysis of Agile Methodology and Its Influence on Industrial Revolution 4.0 Adoption in IoT

Abstract

The rapid advancement of Industrial Revolution 4.0 (IR 4.0) technologies, especially the Internet of Things (IoT), requires a flexible and adaptive implementation approach. Agile Methodology, recognized for its iterative and collaborative principles, offers a potential framework for effectively navigating these complexities. This research paper explores the intersection of Agile practices with IoT adoption within IR 4.0, focusing on psychological safety, leadership styles, team dynamics, and maturity models. Specifically, the study aims to assess the effectiveness of Agile methodology in enabling IoT adoption within the IT sector, analyze the influence of psychological safety, leadership styles, and team dynamics on the successful integration of Agile practices in IoT-driven projects, and explore the role of Agile leadership styles—such as transformational and servant leadership—in promoting innovation and adaptability. Furthermore, the paper investigates the challenges Agile teams face and their impact on business performance under disruptive conditions. By conducting a comprehensive literature review and using path analysis as the primary methodological approach, the findings identify critical gaps in existing research and propose a novel research problem to address these gaps. The paper concludes by suggesting future research directions, emphasizing the need for tailored maturity models and metrics to better support Agile adoption in IoT-driven environments.