Abstract for: Waterfall-Agile challenges in software development projects

Software development projects remain plagued by cost and schedule overruns despite evolving methodologies. Hybrid approaches, like Waterfall-Agile, attempt to improve results by combining upfront planning with iterative development. This methodology places the customer at the center of the software development process, highlighting the critical role of relational capital, but lacks an understanding of its impact on project outcomes. This research addresses this gap by employing a simulation model to identify when and how relational capital influences project results and suggest strategies for improvement. Our findings reveal a significant effect of relational capital on project dynamics, ultimately affecting success. The study contributes theoretically by promoting system dynamics in other research fields and practically by offering managerial recommendations to enhance project results. We also highlight potential future research avenues.