STRATEGIC AGILITY AND ORGANIZATIONAL PERFORMANCE: THE ROLE OF ENVIRONMENTAL TURBULENCE AND ORGANIZATIONAL CULTURE
Keywords:
Strategic Agility, Organizational Performance, Environmental Turbulence, Organizational Culture, Research GapsAbstract
Purpose: This paper critically reviews the relationship between strategic agility and organizational performance, highlighting the moderating effects of environmental turbulence and the mediating role of organizational culture. It also identifies research gaps and proposes a refined conceptual framework for future empirical studies. Methodology: The study uses a systematic literature review, analysing academic journals, conference papers, and research studies. Through thematic and comparative analysis, it synthesizes findings to highlight critical relationships and gaps in current research. Findings: The paper confirms that strategic agility positively impacts organizational performance, but this relationship is heavily influenced by external environmental factors and internal cultural traits. The literature highlights inconsistencies due to divergent methodologies, suggesting the need for a more integrated framework. Value: This review develops a unified conceptual framework that incorporates strategic agility, organizational culture, and environmental turbulence, offering a foundation for future research and practical implementation in dynamic business environments.
References
Abbas, M.W. & Hassan, M. (2017). Moderating Impact of Environmental Turbulence on Relationship between Business Innovation and Business Performance. Pakistan Journal of Commerce and Social Sciences,11(2), 576-596.
Aburub, F. (2015). Impact of ERP systems usage on organizational agility: An empirical investigation in the banking sector. Information Technology and People, 28(3), 570–588. https://doi.org/10.1108/ITP- 06-2014-0124
Aldrich, H.E. (1979). Organizations and Environments: Englewood Cliffs, NJ: Prentice-Hall.
Al-Faouri, A. H., Al-Nsour, M. M., & Al-Kasasbeh, M. M. (2014). The impact of workforce agility on organizational memory. Knowledge Management Research and Practice, 12(4), 432–442. https://doi.org/10.1057/kmrp. 2013.19
Ansoff, H., & Sullivan, P. A. (1993). Optimizing profitability in turbulent environments: A formula for strategic success. Long Range Planning, 26(5), 11–23. https://doi.org/10.1016/0024-6301(93)90073.
Anggraini, W., & Sudhartio, L. (2019). Strategic Agility in Environmental Turbulence A case of Banking Sector in Indonesia. Proceedings of the Proceedings of the 1st Sampoerna University-AFBE International Conference, SU-AFBE 2018, 6-7 December 2018, Jakarta Indonesia. https://doi.org/10.4108/eai.6-12- 2018.2286279
Arokodare, M. A. (2020). The Moderating Effect of Environmental Turbulence on the Strategic Agility Performance Relationship: Empirical Evidence from Lagos State, Nigeria. Business and Management Research, 10(1), 1. https://doi.org/10.5430/bmr.v10n1p1
Atkinson, P., Hizaji, M., Nazarian, A., & Abasi, A. (2022). Attaining organisational agility through competitive intelligence: The roles of strategic flexibility and organisational innovation. Total Quality Management and Business Excellence, 33(3–4), 297–317. https://doi.org/10. 1080/14783363.2020.1842188
Averineni, A., & Rama Swathi, R. S. V. (2019). An empirical emphasis on employees’ perception towards agile HR practices in select software companies. International Journal of Recent Technology and Engineering, 8(3), 2332–2338. https://doi.org/10.35940/ijrte.C4195.098319
Babineau, L., & Lessard, L. (2015). Organizational agility, project management and healthcare reorganization: A case study in organizational change. The Journal of Modern Project Management, 3(1). 120. https://doi.org/ 10.3963/JMPM.V3I1.120
Battistella, C., De Toni, A. F., De Zan, G., & Pessot, E. (2017). Cultivating business model agility through focused capabilities: A multiple case study. Journal of Business Research, 73, 65–82. https://doi.org/10.1016/j.jbusres.2016.12.007
Bennett, N., & Lemoine, G. J. (2014). What a difference a word makes: Understanding threats to performance in a VUCA world. Business Horizons, 57(3), 311–317. https://doi.org/10.1016/j.bushor.2014.01.001
Bessant, J., Knowles, D., Briffa, G., & Francis, D. (2002.). Developing the Agile Enterprise. Int.J. Technology Management,24(5/6), 484-497.
Bititci, U., Garengo, P., Dörfler, V., & Nudurupati, S. (2012). Performance Measurement: Challenges for Tomorrow*: Performance Measurement. International Journal of Management Reviews, 14(3), 305–327. https://doi.org/10.1111/j.1468-2370.2011.00318.x
Brueller, N. N., Carmeli, A., & Drori, I. (2014). How Do Different Types of Mergers and Acquisitions Facilitate Strategic Agility? California Management Review, 56(3), 39–57. https://doi.org/10.1525/cmr.2014.56.3.39
Cameron, K. S. & Quinn, R. (2006). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. San Francisco: The Jossey- Boss: Business and Management Series
Chaker, F., Idrissi, M. A. J., & Manouar, A. E. (2017). A Critical Evaluation of the Sustainability Balanced Scorecard as a Decision Aid Framework. International Journal of Applied Engineering Research, 12(14), 4221-4237
Chakravarty, A., Grewal, R., & Sambamurthy, V. (2013). Information Technology Competencies, Organizational Agility, and Firm Performance: Enabling and Facilitating Roles. Information Systems Research, 24(4), 976–997. https://doi.org/10.1287/isre.2013.0500
Chan, J. I. L., & Muthuveloo, R. (2020). Vital organisational capabilities for strategic agility: An empirical study. Asia-Pacific Journal of Business Administration, 12(3/4), 223–236. https://doi.org/10.1108/APJBA-12-2019-0261
Child, J. (1972). Organizational Structure, Environment and Performance: The Role of Strategic Choice. Sociology, 6(1), 1–22. https://doi.org/10.1177/003803857200600101
Christopher, M. (2000). The Agile Supply Chain. Industrial Marketing Management, 29(1), 37–44. https://doi.org/10.1016/S0019-8501(99)00110-8
Clauss, T., Kraus, S., Kallinger, F. L., Bican, P. M., Brem, A., & Kailer, N. (2020). Organizational ambidexterity and competitive advantage: The role of strategic agility in the exploration-exploitation paradox. Journal of Innovation & Knowledge, S2444569X20300317. https://doi.org/10.1016/j.jik.2020.07.003
Daft, R. L., Sormunen, J., & Parks, D. (1988). Chief executive scanning, environmental characteristics, and company performance: An empirical study. Strategic Management Journal, 9(2), 123–139. https://doi.org/10.1002/smj.4250090204
D’Aveni, R. A., Dagnino, G. B., & Smith, K. G. (2010). The age of temporary advantage. Strategic Management Journal, 31(13), 1371–1385. https://doi.org/10.1002/smj.897
Denison, D. R., & Mishra, A. K. (1995). Toward a Theory of Organizational Culture and Effectiveness. Organization Science, 6(2), 204–223. https://doi.org/10.1287/orsc.6.2.204
Dess, G. G., & Beard, D. W. (1984). Dimensions of Organizational Task Environments. Administrative Science Quarterly, 29(1), 52. https://doi.org/10.2307/2393080
Dove, R., & Palmer, L. M. (2004). Response Ability: The Language, Structure, and Culture of the Agile Organization. Insight, 6(2), 41–41. https://doi.org/10.1002/inst.20046241
Doz, Y., & Kosonen, M. (2008). The Dynamics of Strategic Agility: Nokia’s Rollercoaster Experience. California Management Review, 50(3), 95–118. https://doi.org/10.2307/41166447
Duncan, R. B. (1972). Characteristics of Organizational Environments and Perceived Environmental Uncertainty. Administrative Science Quarterly, 17(3), 313. https://doi.org/10.2307/2392145
Ehtesham, U. M., Muhammad, T. M., & Muhammad, S. A. (2011). Relationship between Organizational Culture and Performance Management Practices: A Case of University in Pakistan. Journal of Competitiveness, 3(4),78-86.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they?.Strategic Management Journal, 21, 1105-1121.
Felipe, C., Roldan, J., & Lea-Rodriguez, A. (2017). Impact of Organizational Culture Values on Organizational Agility. Sustainability, 9(12),2354. https://doi.org/10.3390/su9122354.
Fourné, S. P. L., Jansen, J. J. P., & Mom, T. J. M. (2014). Strategic Agility in MNEs: Managing Tensions to Capture Opportunities across Emerging and Established Markets. California Management Review, 56(3), 13–38. https://doi.org/10.1525/cmr.2014.56.3.13
Goldman, E. F. (2007). Expertise in strategic thinking is not the product of innate ability and pure serendipity. It arises from specific experiences (personal, interpersonal, organizational and external) which occur over 10 or more years. MIT Sloan Management, 48(4), 9.
Haider, S. A., & Kayani, U. N. (2020). The impact of customer knowledge management capabilityon project performance-mediating role of strategic agility. Journal of Knowledge Management, ahead-of-print(ahead-ofprint). https://doi.org/10.1108/JKM-01- 2020-0026
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Anwesha Tripathy , Sanjita Lenka (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
