Abstract

Purpose: The purpose of this paper is to demonstrate systematic application of grounded theory to understand strategic agility in knowledge-based companies (KBCs) in Iran and to explain relationships between them.Methodology: This study uses mixed methods research to explore the determinants of strategic agility in KBCs. This study uses mixed methods approach. Qualitative analysis using “Paradigm model” of grounded theory for data analysis. In Quantitative stage, Structural equation modeling with partial least square is used.Findings: The results of the first phase of the study revealed that causal conditions affecting strategic agility were organizational and environmental factors. As well, intervening conditions included Facilitating and Deterring role of intrinsic attributes of companies; and contextual conditions encompassed Limiting and Encouraging factors. Moreover, strategies and practices were comprised of Extra-organizational and Intra-organizational practices and consequences of strategic agility were consequences at macro and organizational level. The results of the quantitative study, as the second phase, correspondingly confirmed factors identified at the qualitative phase and demonstrated that the casual conditions explain 58.2% of the variance in strategic agility, the three independent constructs explain 72.9% of the variance in strategies, and the strategies explains 59.1% of the variance of consequences.Research limitations: This study was developed on the basis of opinions of a limited number of individuals which could reduce theoretical generalizability of the results. Another limitation is that the research data are limited to KBCs in Iran.Value: The results of this study would theoretically complement the body of knowledge about KBCs which can be cited in future research. Furthermore, the mixed methods approach offers a better insight in understanding strategic agility in KBCs vs the use of either a qualitative or quantitative method alone.

Highlights

  • Nowadays, the world is drawn against significant changes and challenges, moving organizations in various directions

  • Considering the role of knowledge-based companies (KBCs) in development of a country and given that expanding and strengthening strategic agility capabilities leads to survival and success of these companies in everchanging environments, the purpose of this study is to design a model for strategic agility in KBCs to provide them to put up with the rapidly changing environment and to contribute to their successful performance and economic development in Iran

  • Since previous research had rarely reflected on KBCs, the present study attempted to firstly obtain an understanding of the given phenomenon through qualitative research, and to quantify the model obtained from the qualitative phase

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Summary

Introduction

The world is drawn against significant changes and challenges, moving organizations in various directions. Suppliers and customers located in any part of the world have been forced to seek new ways to manage their operations outside the strict limits of the individual company, and the supply chain has come under increasing scrutiny (Alfalla-Luque, Machuca & Marin-Garcia, 2018) To deal with such changes, organizations demand approaches enhancing their flexibility and adaptability to recognize market changes, and reacts appropriately by, for example, moving to different facilities, using different suppliers or outsourcing in changing environments. On the other hand, changing stakeholder needs, increasing global competitions, and growing rates of changes have created conditions such that current routines and the reactive nature of agility by itself can be inadequate (Doz & Kosonen, 2010; Long, 2000) In this way, a new type of agility is required that is beyond adaptation to change and reaction and enables organizations make changes in their business models and more rapidly seize resulting opportunities for change. Companies working together to deliver required products and services taking advantage of diverse global opportunities and varying expertise and experience from partners in the chain (Mavengere, 2009)

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