Abstract
As firms conduct their product development in increasingly dynamic and continuously changing environments, strategic agility can be an important source of product development performance (PDP). However, little attention has been paid to the micro individual capabilities that translate strategic agility into greater PDP. This study examines the mediating roles of employee resilience and self-efficacy as key dynamic micro-level (individual) capabilities that connect firms’ strategic agility to their PDP. Adopting a microfoundations approach and multilevel analysis and using data of 758 managers from 185 firms in Turkey, the findings suggest that strategic agility’s impact on PDP is conveyed through individual-level capabilities of employee resilience and self-efficacy. We draw on the microfoundations of dynamic capabilities and provide important insights on how firms developing individual capabilities attain higher PDP.
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