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The Mediating Role of Innovation Capability on the Relationship between Strategic Agility and Organizational Performance

Author

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  • Ibrahim Rashed AlTaweel

    (Department of Business Administration, Faculty of Business School, Qassim University, P.O. Box 6502, Al Russ 51452, Saudi Arabia)

  • Sulieman Ibraheem Al-Hawary

    (Department of Business Administration, Faculty of Economics and Administrative Sciences, Al al-Bayt University, P.O. Box 130040, Mafraq 25113, Jordan)

Abstract

The changes in the business environment and the increase in competition have led organizations to focus greatly on improving their organizational performance in order to achieve a sustainable competitive advantage by relying on keeping pace with these changes and developing their innovation capability to meet their customers’ desires. Therefore, this research paper aims to explore the relationship between strategic agility and organizational performance through the mediating role of innovation capability. The research population consisted of senior managers in industrial corporations, and the sample comprised 224 senior managers. Structural equation modeling (SEM) was used as a statistical method for testing hypotheses. The results showed that there is a significant influence of strategic agility on organizational performance and innovation capability. Furthermore, innovation capability plays a mediating role in improving the relationship between strategic agility and organizational performance. Accordingly, a set of recommendations are provided to corporations’ senior managers for supporting the organizational activities that lead to the creation of new products and services that are appropriate to the general context of the development of customer desires, realizing the importance of the corporation acquiring flexible re-sources that can be reallocated to meet the changes in the business environment, and adopting modern business models based on stimulating collaborative work and adopting creative ideas.

Suggested Citation

  • Ibrahim Rashed AlTaweel & Sulieman Ibraheem Al-Hawary, 2021. "The Mediating Role of Innovation Capability on the Relationship between Strategic Agility and Organizational Performance," Sustainability, MDPI, vol. 13(14), pages 1-14, July.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:7564-:d:589723
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    Cited by:

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    2. Hongyi Mao & Zongjun Wang & Lin Yi, 2021. "Does Entrepreneurial Orientation Lead to Successful Sustainable Innovation? The Evidence from Chinese Environmentally Friendly Companies," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    3. Muhammad Awais & Amanat Ali & Muhammad Sajid Khattak & Muhammad Irfanullah Arfeen & Muhammad Azam I. Chaudhary & Aleena Syed, 2023. "Strategic Flexibility and Organizational Performance: Mediating Role of Innovation," SAGE Open, , vol. 13(2), pages 21582440231, June.
    4. Qining Deng & K. Noorliza, 2023. "Integration, Resilience, and Innovation Capability Enhance LSPs’ Operational Performance," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    5. Petra Lesníková & Andrea Janáková Sujová, 2023. "Agile Companies – Features And Benefits," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 17(1), pages 80-89.

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