Purpose: Global competition, individualized customer requirements, and volatile market conditions create an environment conducive to agile new product development (ANPD). This research seeks to identify the key factors that in°uence ANPD adoption along with the development of a conceptual framework for the identi¯ed factors. Design/methodology: Through a literature review, eight factors having 47 sub-factors pertinent to ANPD adoption and its performance improvement were identi¯ed. Considering all of these factors, the development of conceptual framework and research hypotheses was carried out. A structured questionnaire was used to collect 118 online responses from both domestic and foreign subject matter experts. The structural equation modeling (SEM) approach was used for validation of the conceptual framework along with the research hypotheses testing. Findings: This study supported six hypotheses: Technology management competencies", Product development competencies", Organizational management competencies", Human resource competencies", Software management competencies", and Policy management competencies". These supported hypotheses in°uence ANPD adoption signi¯cantly. However, the analysis did not support the two more positive factors, namely Integrated system competencies" and Supply chain competencies", showcasing the necessity for a better understanding of them among the product development experts. Research limitations: As the proposed methodology relies on qualitative data, it is somewhat complex and time-consuming. While SEM can verify the linear relationship, a hybrid approach involving the SEM-MCDM technique can be employed to comprehend the impact of ANPD adoption and performance improvement.