Impact of Emotional Intelligence on Leadership and Team Dynamics in Agile Software Engineering Projects

Agile software engineering emphasizes collaboration, adaptability, and team cohesion, where Leadership and interpersonal dynamics are critical for project success. Emotional Intelligence (EI), the ability to recognize, understand, and manage emotions, has been theorized to enhance communication, conflict resolution, and team performance in Agile environments. However, empirical evidence on its direct and mediated impacts remains underexplored. This study examines how EI influences leadership effectiveness and team dynamics in Agile software projects, focusing on quantifying these relationships to inform actionable strategies. A quantitative approach was employed, utilizing structured surveys from 51 Agile professionals (Scrum Masters, developers, and product owners) actively engaged in frameworks such as Scrum, Kanban, and Extreme Programming (XP). Validated instruments—the Emotional Intelligence Scale (EIS), Multifactor Leadership Questionnaire (MLQ), and Team Climate Inventory (TCI) measured EI competencies, leadership behaviors, and team dynamics. Data were analyzed using correlation, regression, and mediation analyses. Results revealed significant positive correlations between EI and leadership effectiveness (r=0.504, p<0.01) and EI and team dynamics (r=0.434, p<0.01). Mediation analysis demonstrated that leadership effectiveness fully mediates the relationship between EI and team outcomes ( $\beta =0.290$ , p<0.01), highlighting the pivotal role of emotionally intelligent leaders in fostering trust and adaptability. Teams led by individuals with high EI reported a 20% increase in trust and marked improvements in collaboration and decision-making. These findings underscore EI as a critical catalyst for Agile success. Organizations are urged to prioritize EI development through targeted leadership training programs and integrate Digital Emotional Intelligence (DEQ) tools (Zoom and Microsoft Teams) to bridge emotional gaps in distributed teams. This study provides actionable insights for optimizing team performance, conflict resolution, and project outcomes in fast-paced software engineering environments, advocating for a human-centric approach to Agile methodologies.