Abstract

To remain competitive within the current, uncertain business scenario, it is vital for firms to develop capabilities that lead them to adapt and offer quick responses to market changes. Under the dynamic capabilities view of the firm, this paper proposes a model that presents an exhaustive analysis of two relevant research gaps: (i) the underlying relationships that determine the impact exerted by each of the four organizational culture typologies, comprised in Cameron and Quinn’s Competing Values Framework on organizational agility and, (ii) the contingency effect exerted by a key environmental factor, the industry’s technology intensity. An empirical study is performed to test the relationships proposed, using data collected from 172 Spain-based companies. To examine the contingency effect of technology intensity, the sample is divided into two subsamples, high and medium tech companies. This work uses partial least squares path-modeling, a variance-based structural equations modeling technique, in order to test and validate the research model and hypotheses posited. In addition, thorough analyses are carried out to assess the predictive performance of our model.

Highlights

  • Nowadays, firms must face extremely turbulent environments whose main characteristics are high levels of uncertainty, complexity and dynamism

  • This paper has considered organizational culture (OC) to be an antecedent of organizational agility (OA) but the acceptance of agile values and principles can be strongly influenced by environmental factors [11]

  • This work is among the scant empirical studies that aim to clarify the links between OC typologies and OA

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Summary

Introduction

Firms must face extremely turbulent environments whose main characteristics are high levels of uncertainty, complexity and dynamism. If firms aim to survive in such volatile environments, they must develop capabilities to detect environmental changes early and to offer accurate responses to them, gaining new business opportunities and competitive advantages to exploit. Assuming the dynamic capabilities view (DCV) as the theoretical framework [3], OA is a critical dynamic capability that influences firms’ competitive actions and it becomes a significant antecedent of their performance [4] In this vein, this paper approaches OA as a dynamic capability that organizations can deliberately use to reach and sustain competitive advantages [5] and to survive crises and changing environments [6]

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