Staying Ahead of the Curve: An Analysis of Strategic Agility and its Role in Ensuring Firm Survival in a Dynamic Business Environment
Keywords:
Strategic Agility, Firm Survival, Dynamic Business Environment, Competition, Ambidexterity
Abstract
This research paper explores the relationship between strategic agility and firm survival in a highly dynamic business environment. The study aims to identify the key factors associated with strategic agility and to analyze how they impact firm performance in a competitive and rapidly changing market. A systematic literature review methodology was employed to gather and analyze the relevant literature. Three key factors were identified as being associated with strategic agility: resource fluidity, leadership capabilities, and strategic sensitivity. The analysis revealed that firms with a higher degree of strategic agility have a better chance of survival in a dynamic business environment. Strategic agility helps firms quickly adapt to changes in the market, anticipate future trends, and respond to customer needs, thereby enhancing their competitiveness. This study contributes to the literature by highlighting the importance of strategic agility as a critical factor in ensuring firm survival in a highly dynamic business environment.
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References
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19. Hurtado-Palomino, A., De la Gala-Velásquez, B., & Ccorisapra-Quintana, J. (2022). The interactive effect of innovation capability and potential absorptive capacity on innovation performance. Journal of Innovation & Knowledge, 7 (4), 100259. https://doi.org/10.1016/j.jik.2022.100259
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21. Kumar, R., Singh, K., & Jain, S. K. (2022). Assessment of Agile manufacturing impact on business performance of Indian manufacturing industry: A PLS-SEM approach. Sustainable Manufacturing and Service Economics, 1, 100001. https://doi.org/10.1016/j.smse.2022.100001
22. Kurniawan, R., Budiastuti, D., Hamsal, M., & Kosasih, W. (2020). The impact of balanced agile project management on firm performance: the mediating role of market orientation and strategic agility. Review of International Business and Strategy, 30 (4), 457–490. https://doi.org/10.1108/ribs-03-2020-0022
23. Larbi-Siaw, O., Xuhua, H., & Ofori Donkor, D. (2023). Attaining sustainable business performance via eco-innovation under ecological regulatory stringency and market turbulence. Journal of Cleaner Production, 394 (394), 136404. https://doi.org/10.1016/j.jclepro.2023.136404
24. Li, C., Khan, A., Ahmad, H., & Shahzad, M. (2022). Business analytics competencies in stabilizing firms’ agility and digital innovation amid COVID-19. Journal of Innovation & Knowledge, 7 (4), 100246. https://doi.org/10.1016/j.jik.2022.100246
25. Lyu, C., Peng, C., Yang, H., Li, H., & Gu, X. (2022). Social capital and innovation performance of digital firms: Serial mediation effect of cross-border knowledge search and absorptive capacity. Journal of Innovation & Knowledge, 7 (2), 100187. https://doi.org/10.1016/j.jik.2022.100187
26. Mata, M. N., Martins, J. M., & Inácio, P. L. (2023). Impact of absorptive capacity on project success through mediating role of strategic agility: Project complexity as a moderator. Journal of Innovation & Knowledge, 8 (1), 100327. https://doi.org/10.1016/j.jik.2023.100327
27. Mata, M. N., Martins, J. M., & Inácio, P. L. (2023). Impact of absorptive capacity on project success through mediating role of strategic agility: Project complexity as a moderator. Journal of Innovation & Knowledge, 8 (1), 100327. https://doi.org/10.1016/j.jik.2023.100327
28. Nyamrunda, F. C., & Freeman, S. (2021). Strategic agility, dynamic relational capability and trust among SMEs in transitional economies. Journal of World Business, 56 (3), 101175. https://doi.org/10.1016/j.jwb.2020.101175
29. Prager, S. D., & Wiebe, K. (2021). Strategic foresight for agriculture: Past ghosts, present challenges, and future opportunities. Global Food Security, 28 (28), 100489. https://doi.org/10.1016/j.gfs.2020.100489
30. Ragazou, K., Passas, I., Garefalakis, A., & Dimou, I. (2022). Investigating the Research Trends on Strategic Ambidexterity, Agility, and Open Innovation in SMEs: Perceptions from Bibliometric Analysis. Journal of Open Innovation: Technology, Market, and Complexity, 8 (3), 118. https://doi.org/10.3390/joitmc8030118
31. Ramasundaram, A., Pandey, N., Shukla, Y., Alavi, S., & Wirtz, J. (2023). Fluidity and the customer experience in digital platform ecosystems. International Journal of Information Management, 69(69), 102599. https://doi.org/10.1016/j.ijinfomgt.2022.102599
32. Reed, J. H. (2020). Strategic agility and the effects of firm age and environmental turbulence. Journal of Strategy and Management, 14(2), 129-149. https://doi.org/10.1108/jsma-07-2020-0178
33. Resource Fluidity. (n.d.). Economic Development Collaborative. Retrieved March 24, 2023, from https://edcollaborative.com/blog/entrepreneurship-innovation/resource-fluidity/#:~:text=Ecosystem%20resource%20fluidity%20is%20a
34. Ruiz-Ortega, M. J., Rodrigo-Alarcón, J., & Parra-Requena, G. (2023). New directions to create dynamic capabilities: The role of pioneering orientation and interorganizational relationships. European Management Journal. https://doi.org/10.1016/j.emj.2023.01.005
35. S, I., Efeomo, R., Paul, S. O., Moyosore, K. T., & Paul, B. B. (2022). Demystifying Performance within the Context of Resource Fluidity in Nigeria. Academy of Strategic Management Journal, 21(2), 1–1. https://www.abacademies.org/articles/demystifying-performance-within-the-context-of-resource-fluidity-in-nigeria-14273.html
36. Sancho-Zamora, R., Gutiérrez-Broncano, S., Hernández-Perlines, F., & Peña-García, I. (2021). A Multidimensional Study of Absorptive Capacity and Innovation Capacity and Their Impact on Business Performance. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.751997
37. Saputra, N., Sasanti, N., Alamsjah, F., & Sadeli, F. (2022). Strategic role of digital capability on business agility during COVID-19 era. Procedia Computer Science, 197, 326–335. https://doi.org/10.1016/j.procs.2021.12.14
38. Shams, R., Vrontis, D., Belyaeva, Z., Ferraris, A., & Czinkota, M. R. (2020). Strategic agility in international business: A conceptual framework for “agile” multinationals. Journal of International Management, 27(1), 100737. https://doi.org/10.1016/j.intman.2020.100737
39. Tarba, S. Y., Frynas, J. G., Liu, Y., Wood, G., Sarala, R. M., & Fainshmidt, S. (2023). Strategic agility in international business. Journal of World Business, 58(2), 101411. https://doi.org/10.1016/j.jwb.2022.101411
40. Vuorio, A., & Torkkeli, L. (2022). Dynamic managerial capability portfolios in early internationalising firms. International Business Review, 32(1), 102049. https://doi.org/10.1016/j.ibusrev.2022.10204
41. What Is Strategic Agility?. (2018, January 28). What Is Strategic Agility?. Forbes. https://www.forbes.com/sites/stevedenning/2018/01/28/what-is-strategic-agility/
42. Zahoor, N., Golgeci, I., Haapanen, L., Ali, I., & Arslan, A. (2022). The role of dynamic capabilities and strategic agility of B2B high-tech small and medium-sized enterprises during COVID-19 pandemic: Exploratory case studies from Finland. Industrial Marketing Management, 105. https://doi.org/10.1016/j.indmarman.2022.07.006
2. Adomako, S., Amankwah-Amoah, J., Donbesuur, F., Ahsan, M., Danso, A., & Uddin, M. (2022). Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions. International Business Review, 31 (6), 102032. https://doi.org/10.1016/j.ibusrev.2022.102032
3. Ahammad, M. F., Basu, S., Munjal, S., Clegg, J., & Shoham, O. B. (2021). Strategic agility, environmental uncertainties and international performance: The perspective of Indian firms. Journal of World Business, 56 (4), 101218. https://doi.org/10.1016/j.jwb.2021.101218
4. Alamsjah, F., & Yunus, E. N. (2022). Achieving Supply Chain 4.0 and the Importance of Agility, Ambidexterity, and Organizational Culture: A Case of Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8 (2), 83. https://doi.org/10.3390/joitmc802008
5. Asseraf, Y., & Gnizy, I. (2022). Translating strategy into action: The importance of an agile mindset and agile slack in international business. International Business Review, 31 (6), 102036. https://doi.org/10.1016/j.ibusrev.2022.102036
6. Asseraf, Y., & Gnizy, I. (2022). Translating strategy into action: The importance of an agile mindset and agile slack in international business. International Business Review, 51 (2), 102036. https://doi.org/10.1016/j.ibusrev.2022.102036
7. Attar, M., & Abdul-Kareem, A. (2020). The Role of Agile Leadership in Organisational Agility. Agile Business Leadership Methods for Industry 4.0, 171–191. https://doi.org/10.1108/978-1-80043-380-920201011
8. Azhar Mohd Harif, M. A., Nawaz, M., & Hameed, W. U. (2022). The role of open innovation, hotel service quality and marketing strategy in hotel business performance. Heliyon, 8 (9), e10441. https://doi.org/10.1016/j.heliyon.2022.e10441
9. Björkdahl, J., Fallahi, S., & Holmén, M. (2022). Explaining business model innovation processes: A problem formulation and problem solving perspective. Industrial Marketing Management, 105 (105), 223–239. https://doi.org/10.1016/j.indmarman.2022.05.012
10. Buehring, J., & Bishop, P. C. (2020). Foresight and Design: New Support for Strategic Decision Making. She Ji: Journal of Design, Economics, and Innovation, 6 (3), 408–432. https://doi.org/10.1016/j.sheji.2020.07.002
11. Chen, X., Tee, K., & Chang, V. (2022). Accelerating Innovation Efficiency through Agile Leadership: The CEO Network Effects in China. Technological Forecasting and Social Change, 179 (179), 121602. https://doi.org/10.1016/j.techfore.2022.121602
12. Cheng, C., Zhong, H., & Cao, L. (2020). Facilitating speed of internationalization: The roles of business intelligence and organizational agility. Journal of Business Research, 110 (110), 95–103. https://doi.org/10.1016/j.jbusres.2020.01.003
13. 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, 6 (4). https://doi.org/10.1016/j.jik.2020.07.003
14. “Dynamic Capabilities: The Source of Competitive Advantage,” 2019, Bâton Global. www.batonglobal.com. https://www.batonglobal.com/post/dynamic-capabilities-the-source-of-competitive-advantage#:~:text=Dynamic%20capabilities%20are%20defined%20as
15. Debellis, F., De Massis, A., Messeni Petruzzelli, A., Frattini, F., & Del Giudice, M. (2020). Strategic agility and international joint ventures: The willingness-ability paradox of family firms. Journal of International Management, 27 (1), 100739. https://doi.org/10.1016/j.intman.2020.100739
16. Demir, R., Campopiano, G., Kruckenhauser, C., & Bauer, F. (2021). Strategic agility, internationalisation speed and international success — The role of coordination mechanisms and growth modes. Journal of International Management, 27 (1), 100838. https://doi.org/10.1016/j.intman.2021.100838
17. Ferraris, A., Degbey, W. Y., Singh, S. K., Bresciani, S., Castellano, S., Fiano, F., & Couturier, J. (2021). Microfoundations of Strategic Agility in Emerging Markets: Empirical Evidence of Italian MNEs in India. Journal of World Business, 57 (2), 101272. https://doi.org/10.1016/j.jwb.2021.101272
18. Harraf, A., Wanasika, I., Tate, K. and Talbott, K. (2015). “Organizational agility. Journal of Applied Business Research, 31 (2), 675-686.
19. Hurtado-Palomino, A., De la Gala-Velásquez, B., & Ccorisapra-Quintana, J. (2022). The interactive effect of innovation capability and potential absorptive capacity on innovation performance. Journal of Innovation & Knowledge, 7 (4), 100259. https://doi.org/10.1016/j.jik.2022.100259
20. Kotabe, M., Jiang, C. X., & Murray, J. Y. (2011). Managerial ties, knowledge acquisition, realized absorptive capacity and new product market performance of emerging multinational companies: A case of China. Journal of World Business, 46 (2), 166–176. https://doi.org/10.1016/j.jwb.2010.05.005
21. Kumar, R., Singh, K., & Jain, S. K. (2022). Assessment of Agile manufacturing impact on business performance of Indian manufacturing industry: A PLS-SEM approach. Sustainable Manufacturing and Service Economics, 1, 100001. https://doi.org/10.1016/j.smse.2022.100001
22. Kurniawan, R., Budiastuti, D., Hamsal, M., & Kosasih, W. (2020). The impact of balanced agile project management on firm performance: the mediating role of market orientation and strategic agility. Review of International Business and Strategy, 30 (4), 457–490. https://doi.org/10.1108/ribs-03-2020-0022
23. Larbi-Siaw, O., Xuhua, H., & Ofori Donkor, D. (2023). Attaining sustainable business performance via eco-innovation under ecological regulatory stringency and market turbulence. Journal of Cleaner Production, 394 (394), 136404. https://doi.org/10.1016/j.jclepro.2023.136404
24. Li, C., Khan, A., Ahmad, H., & Shahzad, M. (2022). Business analytics competencies in stabilizing firms’ agility and digital innovation amid COVID-19. Journal of Innovation & Knowledge, 7 (4), 100246. https://doi.org/10.1016/j.jik.2022.100246
25. Lyu, C., Peng, C., Yang, H., Li, H., & Gu, X. (2022). Social capital and innovation performance of digital firms: Serial mediation effect of cross-border knowledge search and absorptive capacity. Journal of Innovation & Knowledge, 7 (2), 100187. https://doi.org/10.1016/j.jik.2022.100187
26. Mata, M. N., Martins, J. M., & Inácio, P. L. (2023). Impact of absorptive capacity on project success through mediating role of strategic agility: Project complexity as a moderator. Journal of Innovation & Knowledge, 8 (1), 100327. https://doi.org/10.1016/j.jik.2023.100327
27. Mata, M. N., Martins, J. M., & Inácio, P. L. (2023). Impact of absorptive capacity on project success through mediating role of strategic agility: Project complexity as a moderator. Journal of Innovation & Knowledge, 8 (1), 100327. https://doi.org/10.1016/j.jik.2023.100327
28. Nyamrunda, F. C., & Freeman, S. (2021). Strategic agility, dynamic relational capability and trust among SMEs in transitional economies. Journal of World Business, 56 (3), 101175. https://doi.org/10.1016/j.jwb.2020.101175
29. Prager, S. D., & Wiebe, K. (2021). Strategic foresight for agriculture: Past ghosts, present challenges, and future opportunities. Global Food Security, 28 (28), 100489. https://doi.org/10.1016/j.gfs.2020.100489
30. Ragazou, K., Passas, I., Garefalakis, A., & Dimou, I. (2022). Investigating the Research Trends on Strategic Ambidexterity, Agility, and Open Innovation in SMEs: Perceptions from Bibliometric Analysis. Journal of Open Innovation: Technology, Market, and Complexity, 8 (3), 118. https://doi.org/10.3390/joitmc8030118
31. Ramasundaram, A., Pandey, N., Shukla, Y., Alavi, S., & Wirtz, J. (2023). Fluidity and the customer experience in digital platform ecosystems. International Journal of Information Management, 69(69), 102599. https://doi.org/10.1016/j.ijinfomgt.2022.102599
32. Reed, J. H. (2020). Strategic agility and the effects of firm age and environmental turbulence. Journal of Strategy and Management, 14(2), 129-149. https://doi.org/10.1108/jsma-07-2020-0178
33. Resource Fluidity. (n.d.). Economic Development Collaborative. Retrieved March 24, 2023, from https://edcollaborative.com/blog/entrepreneurship-innovation/resource-fluidity/#:~:text=Ecosystem%20resource%20fluidity%20is%20a
34. Ruiz-Ortega, M. J., Rodrigo-Alarcón, J., & Parra-Requena, G. (2023). New directions to create dynamic capabilities: The role of pioneering orientation and interorganizational relationships. European Management Journal. https://doi.org/10.1016/j.emj.2023.01.005
35. S, I., Efeomo, R., Paul, S. O., Moyosore, K. T., & Paul, B. B. (2022). Demystifying Performance within the Context of Resource Fluidity in Nigeria. Academy of Strategic Management Journal, 21(2), 1–1. https://www.abacademies.org/articles/demystifying-performance-within-the-context-of-resource-fluidity-in-nigeria-14273.html
36. Sancho-Zamora, R., Gutiérrez-Broncano, S., Hernández-Perlines, F., & Peña-García, I. (2021). A Multidimensional Study of Absorptive Capacity and Innovation Capacity and Their Impact on Business Performance. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.751997
37. Saputra, N., Sasanti, N., Alamsjah, F., & Sadeli, F. (2022). Strategic role of digital capability on business agility during COVID-19 era. Procedia Computer Science, 197, 326–335. https://doi.org/10.1016/j.procs.2021.12.14
38. Shams, R., Vrontis, D., Belyaeva, Z., Ferraris, A., & Czinkota, M. R. (2020). Strategic agility in international business: A conceptual framework for “agile” multinationals. Journal of International Management, 27(1), 100737. https://doi.org/10.1016/j.intman.2020.100737
39. Tarba, S. Y., Frynas, J. G., Liu, Y., Wood, G., Sarala, R. M., & Fainshmidt, S. (2023). Strategic agility in international business. Journal of World Business, 58(2), 101411. https://doi.org/10.1016/j.jwb.2022.101411
40. Vuorio, A., & Torkkeli, L. (2022). Dynamic managerial capability portfolios in early internationalising firms. International Business Review, 32(1), 102049. https://doi.org/10.1016/j.ibusrev.2022.10204
41. What Is Strategic Agility?. (2018, January 28). What Is Strategic Agility?. Forbes. https://www.forbes.com/sites/stevedenning/2018/01/28/what-is-strategic-agility/
42. Zahoor, N., Golgeci, I., Haapanen, L., Ali, I., & Arslan, A. (2022). The role of dynamic capabilities and strategic agility of B2B high-tech small and medium-sized enterprises during COVID-19 pandemic: Exploratory case studies from Finland. Industrial Marketing Management, 105. https://doi.org/10.1016/j.indmarman.2022.07.006
Published
2023-05-31
How to Cite
Deshati, E. (2023). Staying Ahead of the Curve: An Analysis of Strategic Agility and its Role in Ensuring Firm Survival in a Dynamic Business Environment. European Scientific Journal, ESJ, 19(13), 28. https://doi.org/10.19044/esj.2023.v19n13p28
Section
ESJ Social Sciences
Copyright (c) 2023 Erjona Deshati
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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