The Influence of Strategic Agility on Organisational Performance
Abstract
Organisational performance has become the main issue as organisations are facing intense challenges in the dynamic business environment. Organisations need to have the strategic agility to stay competitive in the current volatility, uncertainty, complexity, and ambiguous (VUCA) environment. Although many studies have been carried out on organisational performance, organisations are yet to achieve the organisational performance that is expected due to the lack of strategic agility in the dynamic business environment. Many organisations are struggling with the sizeable drop in sales, and some have closed their business, especially during the Covid-19 pandemic. Strategic agility has yet to be constantly addressed in the literature, even though it is critical for organisational performance that is crucial for business sustainability. This study applied positivist ontology, quantitative methodology, and empirical epistemology. It was cross-sectional and used a hypotheses approach in a one-time online survey data collection within 2 months.121 responses were collected from electrical and electronics manufacturing-based organizations in Malaysia. The result indicated that strategic agility has a significant influence on organizational performance as per propagated by I-TOP Strategic Agility Model. Attributable to the unavailability of the full details of the population, the data was collected via convenience non-random sampling technique. Thus, there could be some bias in the data gathered. Practitioners could focus on Strategic Agility comprises Awareness, Decision Making and Implementation to manage the VUCA environment, to optimize the organizational performance. Strategic Agility is crucial for organizational performance as per propagated by I-Top Strategic Agility Model.
References
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Bigley, J. (2018). Assembling Frameworks for Strategic Innovation Enactment: Enhancing Transformational Agility through Situational Scanning. Administrative Sciences, 8(3), 37. https://doi.org/10.3390/admsci8030037
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Mikalef, P., Krogstie, J., van de Wetering, R., Pappas, I., & Giannakos, M. (2018). Information Governance in the Big Data Era: Aligning Organizational Capabilities. Proceedings of the 51st Hawaii International Conference on System Sciences, 9, 4911–4920. https://doi.org/10.24251/hicss.2018.615
Murkerjee, S. (2014). Agility: A Crucial Capability for Universities in Times of Disruptive Change and Innovation. Australian Universities’ Review, 56(1), 56–60.
Muterera, J., Hemsworth, D., Baregheh, A., & Garcia-Rivera, B. R. (2018). The Leader–Follower Dyad: The Link Between Leader and Follower Perceptions of Transformational Leadership and Its Impact on Job Satisfaction and Organizational Performance. International Public Management Journal, 21(1), 131–162. https://doi.org/10.1080/10967494.2015.1106993
Muthuveloo, R., & Teoh, A. P. (2013). Achieving Business Sustainability Via I-Top Model. American Journal of Economics and Business Administration, 5(1), 15–21. https://doi.org/10.3844/ajebasp.2013.15.21
Muthuveloo, R., & Teoh, A. P. (2020). Optimisation of Organisational Performance via I-TOP Strategic Agility Model. Journal of Entrepreneurship, Business and Economics, 8(2), 154–174.
Neely, A. (1999). The performance measurment revolution: why now and what next? International Journal of Operations & Production Management, 19(2), 205–228. https://doi.org/10.1108/01443579910247437
Nimeh, H. A., Abdallah, A. B., & Sweis, R. (2018). Lean Supply Chain Management Practices and Performance: Empirical Evidence from Manufacturing Companies. Int. J Sup. Chain. Mgt, 7(1), 1–15.
Ofoegbu, O. . E., & Akanbi, P. A. (2012). The Influence Of Strategic Agility On The Perceived Performance Of Manufacturing Firms In Nigeria. International Business & Economics Research Journal (IBER), 11(2), 153. https://doi.org/10.19030/iber.v11i2.6769
Orojloo, M., Feizi, K., & Hojati Najafabadi, M. (2016). Strategic Agility Capabilities, Factors and their Effect on Organizational Performance: A Case Study of Iranian Banks. The International Journal of Humanities, 23(4), 84–105.
Oyedijo, A. (2012). Strategic agility and competitive performance in the Nigerian telecommunication industry: an empirical investigation. Business and Management Review, 2(3), 227–237. http://www.aijcrnet.com/journals/Vol_2_No_3_March_2012/26.pdf
Peppard, J. (2018). Rethinking the concept of the IS organization. Information Systems Journal, 28(1), 76–103. https://doi.org/10.1111/isj.12122
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2016). Importance-Performance Analysis based SWOT analysis. International Journal of Information Management, 44, 194–203. https://doi.org/10.1016/j.ijinfomgt.2016.03.009
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Porter, M. (1986). Changing patterns of international competition. California Management Review, 28(2), 9–40.
Ravichandran, T. (2018). Exploring the relationships between IT competence, innovation capacity and organizational agility. Journal of Strategic Information Systems, 27(1), 22–42. https://doi.org/10.1016/j.jsis.2017.07.002
Reitz, A., Jentsch, C., & Beimborn, D. (2018). How to decompress the Pressure - The moderating Effect of IT Flexibility on the negative Impact of Governmental Pressure on Business Agility. Proceedings of the 51st Hawaii International Conference on System Sciences, 4613–4620. https://doi.org/10.24251/hicss.2018.582
Remenyi, D., Williams, B., Money, A., & Swartz, E. (1998). Doing research in business and management: An introduction to process and method. London: Sage Publication
Rohrbeck, R., & Kum, M. E. (2018). Corporate foresight and its impact on firm performance: A longitudinal analysis. Technological Forecasting and Social Change, 129(January), 105–116. https://doi.org/10.1016/j.techfore.2017.12.013
Sekaran, U. & Bougie, R. (2013). Research methods for business: A skill-building approach (6th ed.). West Sussex, UK: John Wiley & Sons.
Suh, C. J., & Lee, I. T. (2018). An empirical study on the manufacturing firm’s strategic choice for sustainability in SMEs. Sustainability (Switzerland), 10(2). https://doi.org/10.3390/su10020572
Tee, K. (2020, May 6). A Call To Action: James Dyson Designed CoVent, A New Ventilator To Fight Covid-19. Retrieved July 10, 2020, from https://hk.asiatatler.com/society/james-dyson-covent-ventilator-coronavirus
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(March), 509–533. https://doi.org/Article
Teoh, A. P., Lee, K. Y., & Muthuveloo, R. (2017). The impact of enterprise risk management, strategic agility, and quality of internal audit function on firm performance. International Review of Management and Marketing, 7(1), 222–229.
Tuzovic, S., Wirtz, J., & Heracleous, L. (2018). How Do Innovators Stay Innovative ? A Longitudinal Case Analysis Sven Tuzovic , Jochen Wirtz and Loizos Heracleous Accepted for Publication in : Journal of Services Marketing Special Issue on : Customer Engagement in Service Innovation : Theoretical and E. Journal of Services Marketing, 32(1), 34–45.
Wamuuru, C. G., & Jamleck, D. M. (2018). Human resource management practices, employee behavioral outcomes and organizational performance in public service : A critical literature review. Management and Economic Journal, 2(3), 249–267. https://doi.org/10.1234.67/mej.1020
Wicks, A. C., & Freeman, R. E. (1998). Organization studies and the new pragmatism : Positivism , anti-positivism , and the search for ethics. Organization Science, 9(2), 123–140.
Yang, C., & Liu, H. M. (2012). Boosting firm performance via enterprise agility and network structure. Management Decision, 50(6), 1022–1044. https://doi.org/10.1108/00251741211238319
Amaratunga, D., Baldry, D., Sarshar, M., & Newton, R. (2002). Quantitative and qualitative research in the built environment: application of “mixed” research approach. Work Study, 51(1), 17–31. doi:10.1108/00438020210415488
Arokodare, M. A., & Asikhia, O. U. (2020). Strategic Agility: Achieving Superior Organizational Performance through Strategic Foresight. Global Journal of Management and Business Research, 20(February), 7–16. https://doi.org/10.34257/gjmbravol20is3pg7
Ashford, S. J., Wellman, N., Sully de Luque, M., De Stobbeleir, K. E. M., & Wollan, M. (2017). Two roads to effectiveness: CEO feedback seeking, vision articulation, and firm performance. Journal of Organizational Behavior, 1–14. https://doi.org/10.1002/job.2211
Baškarada, S., & Koronios, A. (2018). The 5S organizational agility framework: a dynamic capabilities perspective. International Journal of Organizational Analysis, 26(2), 331–342. https://doi.org/10.1108/IJOA-05-2017-1163
Bigley, J. (2018). Assembling Frameworks for Strategic Innovation Enactment: Enhancing Transformational Agility through Situational Scanning. Administrative Sciences, 8(3), 37. https://doi.org/10.3390/admsci8030037
Cegarra-Navarro, J. G., Soto-Acosta, P., & Wensley, A. K. P. (2016). Structured knowledge processes and firm performance: The role of organizational agility. Journal of Business Research, 69(5), 1544–1549. https://doi.org/10.1016/j.jbusres.2015.10.014
Cooper, D. R., & Schindler, P. S. (2011). Business research methods. (11th ed.). New York: McGraw Hill.
de Waal, A. A. (2008). The secret of high performance organizations. Management Online Review, 1–10.
Dunning, J. H. (1994). Re-evaluating the benefits of foreign direct investment. In Unctad.Org (Vol. 3, Issue 1, pp. 23–51). http://unctad.org/en/Docs/iteiitv3n1a3_en.pdf
Gitelman, L. D., Gavrilova, T. B., Kozhevnikov, M. V., & Starikov, E. M. (2018). Ensuring resilience and agility of complex organizational-technical systems. International Journal of Design and Nature and Ecodynamics, 13(2), 208–220. https://doi.org/10.2495/DNE-V13-N2-208-220
Gunasekaran, A. (2017). Big data and predictive analytics for supply chain and organizational performance. Journal of Business Research, 70, 308–317. https://doi.org/10.1016/j.jbusres.2016.08.004
Gure, A. K., & Karugu, J. (2018). Strategic Management Practices and Performance of Small and Micro Enterprises in Nairobi City County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(1), 1–26. http://www.iajournals.org/articles/iajhrba_v3_i1_1_26.pdf
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modelling (PLS-SEM). (2nd ed.). Thousand Oaks, California: SAGE Publications.
Hair, Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. doi:10.1108/EBR-10-2013-0128
Haloho, E., & Tawila, L. (2018). Increasing Organization Performance Through Competitive Advantage of Private University in Medan. Atlantis Press, 46(Ebic 2017), 358–363. https://doi.org/10.2991/ebic-17.2018.55
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Judith, N. M. W., & Kennedy, O. (2014). Role Of Information Systems Competence In Supply Chain Agility In Service Industry. International Journal of Economics, Commerce and Management, 2(25), 1–22.
Kale, E., Aknar, A., & Başar, Ö. (2019). Absorptive capacity and firm performance: The mediating role of strategic agility. International Journal of Hospitality Management, 78(October 2018), 276–283. https://doi.org/10.1016/j.ijhm.2018.09.010
Koay, H. G., & Muthuveloo, R. (2021). The Influence of Disruptive Innovation, Organisational Capabilities and People on Organisational Performance Among Manufacturing Based Companies in Malaysia. Journal of Entrepreneurship, Business and Econonomics, 9(1), 163–201.
Kwon, S. J., Ryu, D., & Park, E. (2018). The Influence of Founders’ Strategic Agility and Dynamic Capability on the Opportunity Pursuit Process of New Ventures: An Exploratory Case Study in South Korea. Academy of Strategic Management Journal, 17(1), 1–17. https://doi.org/10.2139/ssrn.2691337
Leitão, P. (2009). Agent-based distributed manufacturing control: A state-of-the-art survey. Engineering Applications of Artificial Intelligence, 22(7), 979–991. https://doi.org/10.1016/j.engappai.2008.09.005
Mikalef, P., Krogstie, J., van de Wetering, R., Pappas, I., & Giannakos, M. (2018). Information Governance in the Big Data Era: Aligning Organizational Capabilities. Proceedings of the 51st Hawaii International Conference on System Sciences, 9, 4911–4920. https://doi.org/10.24251/hicss.2018.615
Murkerjee, S. (2014). Agility: A Crucial Capability for Universities in Times of Disruptive Change and Innovation. Australian Universities’ Review, 56(1), 56–60.
Muterera, J., Hemsworth, D., Baregheh, A., & Garcia-Rivera, B. R. (2018). The Leader–Follower Dyad: The Link Between Leader and Follower Perceptions of Transformational Leadership and Its Impact on Job Satisfaction and Organizational Performance. International Public Management Journal, 21(1), 131–162. https://doi.org/10.1080/10967494.2015.1106993
Muthuveloo, R., & Teoh, A. P. (2013). Achieving Business Sustainability Via I-Top Model. American Journal of Economics and Business Administration, 5(1), 15–21. https://doi.org/10.3844/ajebasp.2013.15.21
Muthuveloo, R., & Teoh, A. P. (2020). Optimisation of Organisational Performance via I-TOP Strategic Agility Model. Journal of Entrepreneurship, Business and Economics, 8(2), 154–174.
Neely, A. (1999). The performance measurment revolution: why now and what next? International Journal of Operations & Production Management, 19(2), 205–228. https://doi.org/10.1108/01443579910247437
Nimeh, H. A., Abdallah, A. B., & Sweis, R. (2018). Lean Supply Chain Management Practices and Performance: Empirical Evidence from Manufacturing Companies. Int. J Sup. Chain. Mgt, 7(1), 1–15.
Ofoegbu, O. . E., & Akanbi, P. A. (2012). The Influence Of Strategic Agility On The Perceived Performance Of Manufacturing Firms In Nigeria. International Business & Economics Research Journal (IBER), 11(2), 153. https://doi.org/10.19030/iber.v11i2.6769
Orojloo, M., Feizi, K., & Hojati Najafabadi, M. (2016). Strategic Agility Capabilities, Factors and their Effect on Organizational Performance: A Case Study of Iranian Banks. The International Journal of Humanities, 23(4), 84–105.
Oyedijo, A. (2012). Strategic agility and competitive performance in the Nigerian telecommunication industry: an empirical investigation. Business and Management Review, 2(3), 227–237. http://www.aijcrnet.com/journals/Vol_2_No_3_March_2012/26.pdf
Peppard, J. (2018). Rethinking the concept of the IS organization. Information Systems Journal, 28(1), 76–103. https://doi.org/10.1111/isj.12122
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2016). Importance-Performance Analysis based SWOT analysis. International Journal of Information Management, 44, 194–203. https://doi.org/10.1016/j.ijinfomgt.2016.03.009
Pohludka, M., Stverkova, H., & Ślusarczyk, B. (2018). Implementation and unification of the ERP system in a global company as a strategic decision for sustainable entrepreneurship. Sustainability (Switzerland), 10(8), 1–16. https://doi.org/10.3390/su10082916
Porter, M. (1986). Changing patterns of international competition. California Management Review, 28(2), 9–40.
Ravichandran, T. (2018). Exploring the relationships between IT competence, innovation capacity and organizational agility. Journal of Strategic Information Systems, 27(1), 22–42. https://doi.org/10.1016/j.jsis.2017.07.002
Reitz, A., Jentsch, C., & Beimborn, D. (2018). How to decompress the Pressure - The moderating Effect of IT Flexibility on the negative Impact of Governmental Pressure on Business Agility. Proceedings of the 51st Hawaii International Conference on System Sciences, 4613–4620. https://doi.org/10.24251/hicss.2018.582
Remenyi, D., Williams, B., Money, A., & Swartz, E. (1998). Doing research in business and management: An introduction to process and method. London: Sage Publication
Rohrbeck, R., & Kum, M. E. (2018). Corporate foresight and its impact on firm performance: A longitudinal analysis. Technological Forecasting and Social Change, 129(January), 105–116. https://doi.org/10.1016/j.techfore.2017.12.013
Sekaran, U. & Bougie, R. (2013). Research methods for business: A skill-building approach (6th ed.). West Sussex, UK: John Wiley & Sons.
Suh, C. J., & Lee, I. T. (2018). An empirical study on the manufacturing firm’s strategic choice for sustainability in SMEs. Sustainability (Switzerland), 10(2). https://doi.org/10.3390/su10020572
Tee, K. (2020, May 6). A Call To Action: James Dyson Designed CoVent, A New Ventilator To Fight Covid-19. Retrieved July 10, 2020, from https://hk.asiatatler.com/society/james-dyson-covent-ventilator-coronavirus
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(March), 509–533. https://doi.org/Article
Teoh, A. P., Lee, K. Y., & Muthuveloo, R. (2017). The impact of enterprise risk management, strategic agility, and quality of internal audit function on firm performance. International Review of Management and Marketing, 7(1), 222–229.
Tuzovic, S., Wirtz, J., & Heracleous, L. (2018). How Do Innovators Stay Innovative ? A Longitudinal Case Analysis Sven Tuzovic , Jochen Wirtz and Loizos Heracleous Accepted for Publication in : Journal of Services Marketing Special Issue on : Customer Engagement in Service Innovation : Theoretical and E. Journal of Services Marketing, 32(1), 34–45.
Wamuuru, C. G., & Jamleck, D. M. (2018). Human resource management practices, employee behavioral outcomes and organizational performance in public service : A critical literature review. Management and Economic Journal, 2(3), 249–267. https://doi.org/10.1234.67/mej.1020
Wicks, A. C., & Freeman, R. E. (1998). Organization studies and the new pragmatism : Positivism , anti-positivism , and the search for ethics. Organization Science, 9(2), 123–140.
Yang, C., & Liu, H. M. (2012). Boosting firm performance via enterprise agility and network structure. Management Decision, 50(6), 1022–1044. https://doi.org/10.1108/00251741211238319
Published
2023-03-31
How to Cite
MUTHUVELOO, Rajendran; GEE KOAY, Hooi.
The Influence of Strategic Agility on Organisational Performance.
International Journal of Business and Technology Management, [S.l.], v. 5, n. 1, p. 411-423, mar. 2023.
ISSN 2682-7646.
Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/21961>. Date accessed: 05 dec. 2024.
Section
Articles
