Structural Relationship Between Environmental Uncertainty, Organizational Agility, and Business Performance in SMMEs

Abstract

Despite that small and medium-sized manufacturing firms have been playing a role to promote economic growth and development in national industries, the management activities of small and medium-sized manufacturing firms are restricted by numerous internal and external environmental factors and are facing diverse challenges. Therefore, this study empirically verified the structural relationships among environmental uncertainty, organizational agility, and business performance recognized by small and medium-sized manufacturing firms. According to the results of this study, it can be said to be important to identify the characteristics of the uncertain management environment and secure and strengthen agile organizational capabilities to respond to the foregoing in order to secure competitive advantages and achieve sustainable growth of small and medium-sized manufacturing firms in the rapidly changing business environment.