Enablers of workforce agility, firm performance, and corporate reputation

Abstract

This study investigates whether workforce agility via financial and non-financial performance influences corporate reputation and whether transformational leadership of top management and talent management via workforce agility impact financial and non-financial performance of IT firms. Data were collected from 225 IT firms and a middle-level executive from each firm responded to the questionnaire. Standard inventories were used to measure the constructs and only an inventory was developed to assess talent management. Data on financial performance, stock-listing status, firm size, and location of the firm were taken from secondary sources. When the effect of stock-listing status was controlled, firm performance improved corporate reputation. High (low) workforce agility via increased (decreased) firm performance was associated with high (low) corporate reputation. Furthermore, transformational leadership of top management and talent management via workforce agility were positively related to firm performance. The indirect effects suggested full mediation except the impact of workforce agility via financial performance on corporate reputation. Conclusively, transformational leadership of the top management and talent management of the firm develop the workforce agility, and the workforce agility furthers the firm performance that begets corporate reputation.