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In software development (SD), practitioners have realized the importance of lean thinking. A new term “Leagile” is coined, which is an integrated approach of traditional lean and agile thinking to managing the operations. The study aims to investigate the application of the Leagile principles in a new sector and establish a relationship between the adoption of Leagile approach and operational performance (OP) in SD organizations.

Empirical research is conducted to investigate the linkage between the Leagile principles and operational measures. Data is collected through surveys from 256 SD industries located in 11 states of India and analysed using the structural equation modelling approach.

The practitioners envisage a positive impact of adoption of Leagile principles on OP of SD organizations, but one of the principles, i.e. perfection, is unable to influence the performance.

The study contributes by authorizing the contribution of Leagile principles towards OP of SD organizations. The outcomes will motivate the practitioners to enhance the adoption of Leagile principles in SD organizations.

The purpose of this paper is to gain insights about the applicability of Lean principles in software industry along with the Lean implementation issues.

Exploratory case studies have been carried out in five software companies. Data were collected by observation and semi-structured interviews with project managers. In this paper, case organizations are categorized as product vs project software development (SD) organization.

It is found that although Lean principles are being adopted in SD projects, application of all Lean principles is not visible. This research reveals that value and flow are more relevant in SD organizations, while value stream, pull and perfection are not conspicuous.

This paper would prove invaluable to lean practitioners and researchers to gain knowledge in lean SD. The paper puts forward the key issues that should be addressed for successful adoption of lean in SD. This study set out to determine the practitioners’ perception of the applicability of lean principles in SD projects. It provides a sound basis for further empirical research on adoption of lean principles in SD organizations.