Background: During the last decades there has been a rapid increase in the desire of being more flexible and responsive, which has paved the way for Agile Project Management – APM. As a consequence of implementing APM into environments previously defined as traditional, it has opened up a discussion of merging APM with Traditional Project Management – TPM. This combination of methodologies is referred to as Hybrid Project Management – HPM, whose aim is to leverage benefits from both APM and TPM.

Purpose: Prior research has failed to keep up with this trend. Those that have shed light on this phenomenon have failed to realize the differences between IT and non-IT sectors. With this in mind, and the call for including managers’ perspective on HPM, this study has investigated project managers’ experiences and perceptions of factors that influence hybrid project success in physical product development. In order to address this purpose this study has also investigated how project managers perceive project success. This was done since one must first determine what constitutes project success in order to identify what factors that could bear a potential influence on it.

Method: From an interpretivist philosophical standpoint this, exploratory and inductive, study has been carried out through semi-structured interviews with experienced project managers within HPM. Inspired by Grounded Theory, this study has employed purposive sampling and analyzed the data through a grounded analysis technique.

Conclusion: This research has successfully identified a range of various factors that influence hybrid projects’ success. Based upon this, a model exhibiting the factors influencing hybrid projects in physical product development could be constructed, as well as a model depicting how project managers perceive hybrid project success. It was found that there is a constant tension between the TPM and APM when merging the two. Instead of identifying one way to optimize the hybrid project, it is more or less about managing this balance between APM and TPM practices. It was also found that project success is a dynamic and subjective concept, rather than the static and additive concept that is often illustrated by contemporary research.