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Continuous Organizational Agility in Banking: Unveiling New Pathways to Competitive Advantage

Author

Listed:
  • Inta Hartaningtyas Rani

    (University of Indonesia
    Ahmad Dahlan Institute of technology and Business)

  • Rhenald Kasali

    (University of Indonesia)

  • Ratih Dyah Kusumastuti

    (University of Indonesia)

  • Sri Rahayu Hijrah Hati

    (University of Indonesia)

Abstract

Banks face accelerating regulatory pressure to adapt and gain competitive advantages in a digitally evolving financial landscape. This study examines the micro-foundations and key drivers of continuous organizational agility as a survival capability for succeeding in competition. Partial least squares structural equation modeling of survey data from Indonesian bank executives confirmed the mechanisms by which routine dynamics and dynamic capabilities form a new multidimensional construct of continuous organizational agility. This approach also highlights the interplay between entrepreneurial leadership, digital organizational culture, and digital platform capability. Interestingly, the findings indicate that continuous organizational agility and digital platform capabilities directly impact competitive advantage, while other factors exert indirect influences. This reveals the critical balance banks must maintain between rapid adaptability and operational stability, emphasizing digital orientation as key to sustaining competitive advantage. These results offer actionable pathways to align stakeholder interests, including regulatory demands, with agility-driven competitive strategies.

Suggested Citation

  • Inta Hartaningtyas Rani & Rhenald Kasali & Ratih Dyah Kusumastuti & Sri Rahayu Hijrah Hati, 2025. "Continuous Organizational Agility in Banking: Unveiling New Pathways to Competitive Advantage," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(3), pages 469-490, September.
    • Handle: RePEc:spr:gjofsm:v:26:y:2025:i:3:d:10.1007_s40171-025-00452-0
    DOI: 10.1007/s40171-025-00452-0
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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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