The Influence of Strategic Agility on Organisational Performance

Abstract

Organisational performance has become the main issue as organisations are facing intense challenges in the dynamic business environment. Organisations need to have the strategic agility to stay competitive in the current volatility, uncertainty, complexity, and ambiguous (VUCA) environment. Although many studies have been carried out on organisational performance, organisations are yet to achieve the organisational performance that is expected due to the lack of strategic agility in the dynamic business environment. Many organisations are struggling with the sizeable drop in sales, and some have closed their business, especially during the Covid-19 pandemic. Strategic agility has yet to be constantly addressed in the literature, even though it is critical for organisational performance that is crucial for business sustainability. This study applied positivist ontology, quantitative methodology, and empirical epistemology. It was cross-sectional and used a hypotheses approach in a one-time online survey data collection within 2 months.121 responses were collected from electrical and electronics manufacturing-based organizations in Malaysia. The result indicated that strategic agility has a significant influence on organizational performance as per propagated by I-TOP Strategic Agility Model. Attributable to the unavailability of the full details of the population, the data was collected via convenience non-random sampling technique. Thus, there could be some bias in the data gathered. Practitioners could focus on Strategic Agility comprises Awareness, Decision Making and Implementation to manage the VUCA environment, to optimize the organizational performance. Strategic Agility is crucial for organizational performance as per propagated by I-Top Strategic Agility Model.