IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i14p7564-d589723.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/14/7564/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/14/7564/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anson T. H. Ma & Alice S. Y. Chow & Lewis T. O. Cheung & Karen M. Y. Lee & Shuwen Liu, 2018. "Impacts of Tourists’ Sociodemographic Characteristics on the Travel Motivation and Satisfaction: The Case of Protected Areas in South China," Sustainability, MDPI, vol. 10(10), pages 1-21, September.
    2. Min-Seong Kim & Brijesh Thapa, 2018. "Relationship of Ethical Leadership, Corporate Social Responsibility and Organizational Performance," Sustainability, MDPI, vol. 10(2), pages 1-16, February.
    3. MacKenzie, Scott B. & Podsakoff, Philip M., 2012. "Common Method Bias in Marketing: Causes, Mechanisms, and Procedural Remedies," Journal of Retailing, Elsevier, vol. 88(4), pages 542-555.
    4. Main Naser Alolayyan & Sulieman Ibraheem Shelash Al-Hawary & Anber Abraheem Shlash Mohammad & Bahaà Abdul-Hafez Attallah Al-Nady, 2018. "Banking service quality provided by commercial banks and customer satisfaction. A structural equation modelling approaches," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 24(4), pages 543-565.
    5. Haroon ur Rashid Khan & Murad Ali & Hossein G. T. Olya & Muhamamd Zulqarnain & Zubair Rashid Khan, 2018. "Transformational leadership, corporate social responsibility, organizational innovation, and organizational performance: Symmetrical and asymmetrical analytical approaches," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1270-1283, November.
    6. Dalwon Kang & Sihyun Kim, 2017. "Conceptual Model Development of Sustainability Practices: The Case of Port Operations for Collaboration and Governance," Sustainability, MDPI, vol. 9(12), pages 1-15, December.
    7. Shafique-ur Rehman & Rapiah Mohamed & Hazeline Ayoup, 2019. "The mediating role of organizational capabilities between organizational performance and its determinants," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-23, December.
    8. Subramony, Mahesh & Segers, Jesse & Chadwick, Clint & Shyamsunder, Aarti, 2018. "Leadership development practice bundles and organizational performance: The mediating role of human capital and social capital," Journal of Business Research, Elsevier, vol. 83(C), pages 120-129.
    9. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    10. Anirban Ganguly & Chitresh Kumar & Garima Saxena & Asim Talukdar, 2020. "Firms’ Reputation for Innovation: Role of Marketing Capability, Innovation Capability, and Knowledge Sharing," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 19(02), pages 1-27, June.
    11. Philip Ebow Bondzi–Simpson & Kingsley S. Agomor, 2021. "Financing Public Universities in Ghana Through Strategic Agility: Lessons from Ghana Institute of Management and Public Administration (GIMPA)," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(1), pages 1-15, March.
    12. Zhou, Steven S & Zhou, Abby J & Feng, Junzheng & Jiang, Shisong, 2019. "Dynamic capabilities and organizational performance: The mediating role of innovation," Journal of Management & Organization, Cambridge University Press, vol. 25(5), pages 731-747, September.
    13. Changiz Valmohammadi & Javad Sofiyabadi & Bahare Kolahi, 2019. "How do Knowledge Management Practices Affect Sustainable Balanced Performance? Mediating Role of Innovation Practices," Sustainability, MDPI, vol. 11(18), pages 1-23, September.
    14. Antonio Miceli & Birgit Hagen & Maria Pia Riccardi & Francesco Sotti & Davide Settembre-Blundo, 2021. "Thriving, Not Just Surviving in Changing Times: How Sustainability, Agility and Digitalization Intertwine with Organizational Resilience," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    15. Shams, Riad & Vrontis, Demetris & Belyaeva, Zhanna & Ferraris, Alberto & Czinkota, Michael R., 2021. "Strategic agility in international business: A conceptual framework for “agile” multinationals," Journal of International Management, Elsevier, vol. 27(1).
    16. Ploypailin Kijkasiwat & Pongsutti Phuensane, 2020. "Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance," JRFM, MDPI, vol. 13(5), pages 1-15, May.
    17. Hsiao, Yung-Chang & Hsu, Zheng-Xin, 2018. "Firm-specific advantages-product innovation capability complementarities and innovation success: A core competency approach," Technology in Society, Elsevier, vol. 55(C), pages 78-84.
    18. Gayathri Sampath & Bala Krishnamoorthy, 2017. "Is strategic agility the new Holy Grail? Exploring the strategic agility construct," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 13(2), pages 160-180.
    19. Falahat, Mohammad & Ramayah, T. & Soto-Acosta, Pedro & Lee, Yan-Yin, 2020. "SMEs internationalization: The role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs’ international performance," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    20. Marco Brand & Victor Tiberius & Peter M. Bican & Alexander Brem, 2021. "Agility as an innovation driver: towards an agile front end of innovation framework," Review of Managerial Science, Springer, vol. 15(1), pages 157-187, January.
    21. Mohamed Battour & Maged Barahma & Mohammed Al-Awlaqi, 2021. "The Relationship between HRM Strategies and Sustainable Competitive Advantage: Testing the Mediating Role of Strategic Agility," Sustainability, MDPI, vol. 13(9), pages 1-15, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ibrahim Mutambik & Abdullah Almuqrin, 2024. "The Best of Both Worlds: How Financial Growth Can Engender Improved Sustainability for Businesses," Sustainability, MDPI, vol. 16(11), pages 1-23, June.
    2. Sultan Alaswad Alenazi & Tawfeeq Mohammed Alanazi, 2023. "The Mediating Role of Sustainable Dynamic Capabilities in the Effect of Social Customer Relationship Management on Sustainable Competitive Advantage: A Study on SMEs in Saudi Arabia," Sustainability, MDPI, vol. 15(3), pages 1-12, January.
    3. 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.
    4. Henri Harapan Saragih & Muhammad Saifi & Nila Firdausi Nuzula & Saparila Worokinasih, 2024. "The Role of Corporate Agility in Advancing Sustainable Strategy: Examining the Influence of Shareholder Activism and Board Commitment," Sustainability, MDPI, vol. 16(24), pages 1-18, December.
    5. 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.
    6. Marina Rybalka, 2024. "Innovation Pattern Heterogeneity and Firm Strategic Agility: Push- and Pull-Effects of COVID-19 on Firms’ Innovation Strategies," Businesses, MDPI, vol. 4(4), pages 1-24, October.
    7. Dimitrije Gašić & Nemanja Berber & Agneš Slavić & Maja Strugar Jelača & Slobodan Marić & Radmila Bjekić & Marko Aleksić, 2024. "The Key Role of Employee Commitment in the Relationship Between Flexible Work Arrangements and Employee Behavior," Sustainability, MDPI, vol. 16(22), pages 1-21, November.
    8. Qining Deng & K. Noorliza, 2023. "Integration, Resilience, and Innovation Capability Enhance LSPs’ Operational Performance," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    9. Saeid Homayoun & Mahdi Salehi & AmirHossein ArminKia & Vesna Novakovic, 2024. "The Mediating Effect of Innovative Performance on the Relationship Between the Use of Information Technology and Organizational Agility in SMEs," Sustainability, MDPI, vol. 16(22), pages 1-23, November.
    10. Petra Lesníková & Andrea Janáková Sujová, 2023. "Agile Companies – Features And Benefits," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 17(1), pages 80-89.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amol Adkonkar & Anand Sharma & Pooja Arora, 2024. "Validation of Instrument Measuring the Impact of SCM Practices and SCM Agility on Competitive Advantage and Organization Performance in Indian Pharmaceutical Firms," Paradigm, , vol. 28(1), pages 65-83, June.
    2. Troise, Ciro & Corvello, Vincenzo & Ghobadian, Abby & O'Regan, Nicholas, 2022. "How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    3. Raiswa Saha & Shashi & Roberto Cerchione & Rajwinder Singh & Richa Dahiya, 2020. "Effect of ethical leadership and corporate social responsibility on firm performance: A systematic review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 409-429, March.
    4. Tortora, Debora & Chierici, Roberto & Farina Briamonte, Massimiliano & Tiscini, Riccardo, 2021. "‘I digitize so I exist’. Searching for critical capabilities affecting firms’ digital innovation," Journal of Business Research, Elsevier, vol. 129(C), pages 193-204.
    5. Aleem Ahmad Qader & Jingwei Zhang & Sheikh Farhan Ashraf & Nausheen Syed & Khaoula Omhand & Mehrab Nazir, 2022. "Capabilities and Opportunities: Linking Knowledge Management Practices of Textile-Based SMEs on Sustainable Entrepreneurship and Organizational Performance in China," Sustainability, MDPI, vol. 14(4), pages 1-26, February.
    6. Zbysław Dobrowolski, 2021. "Internet of Things and Other E-Solutions in Supply Chain Management May Generate Threats in the Energy Sector—The Quest for Preventive Measures," Energies, MDPI, vol. 14(17), pages 1-11, August.
    7. Eltigani Ahmed & James Kilika & Clare Gakenia, 2021. "The conceptualization of dynamic resource orchestration framework as an anchor for organizational resilience," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(7), pages 53-61, October.
    8. Henrique Faverzani Drago & Gilnei Luiz Moura & Luciana Santos Costa Vieira Silva & Claudimar Pereira Veiga & Fabíola Kaczam & Luciana Peixoto Santa Rita & Wesley Vieira Silva, 2023. "Reviewing the relationship between organizational performance, dynamic capabilities and strategic behavior," SN Business & Economics, Springer, vol. 3(1), pages 1-22, January.
    9. Acquah, Innocent Senyo Kwasi & Quaicoe, Judith & Gatsi, John Gartchie, 2024. "Modelling circular economy capabilities and sustainable manufacturing practices for environmental performance: Assessing linear (PLS-SEM) and non-linear (fsQCA) effects," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    10. Lovlyn Ekeowa Kelvin-Iloafu & Francis Ezieshi Monyei & Wilfred Isioma Ukpere & Happiness Ozioma Obi-Anike & Phina Njideka Onyekwelu, 2023. "The Impact of Human Capital Development on the Sustainability and Innovativeness of Deposit Money Banks’ Workforces," Sustainability, MDPI, vol. 15(14), pages 1-15, July.
    11. Siriram, Rajenlall, 2022. "An innovative approach to overcoming technological challenges and improving firm performance in South Africa," Technology in Society, Elsevier, vol. 68(C).
    12. Mostafa A. Ali & Nazimah Hussin & Hossam Haddad & Dina Alkhodary & Ahmad Marei, 2021. "Dynamic Capabilities and Their Impact on Intellectual Capital and Innovation Performance," Sustainability, MDPI, vol. 13(18), pages 1-32, September.
    13. Sultana, Saida & Akter, Shahriar & Kyriazis, Elias, 2022. "How data-driven innovation capability is shaping the future of market agility and competitive performance?," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    14. Chen, Xihui Haviour & Tee, Kienpin & Chang, Victor, 2022. "Accelerating Innovation Efficiency through Agile Leadership: The CEO Network Effects in China," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    15. Lythreatis, Sophie & Singh, Sanjay Kumar & El-Kassar, Abdul-Nasser, 2022. "The digital divide: A review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    16. Xu, Xiao-Yu & Jia, Qing-Dan & Tayyab, Syed Muhammad Usman, 2024. "Exploring the stimulating role of augmented reality features in E-commerce: A three-staged hybrid approach," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    17. Jiayue Zhang, 2024. "What Is a Successful Business Model? Exploration and Measurement of Key Attributes of Business Model," SAGE Open, , vol. 14(2), pages 21582440241, May.
    18. Ting Chi & Olabisi Adesanya & Hang Liu & Rebecca Anderson & Zihui Zhao, 2023. "Renting than Buying Apparel: U.S. Consumer Collaborative Consumption for Sustainability," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    19. Agnieszka Kuś & Dorota Grego-Planer, 2021. "A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-17, May.
    20. Youn Kue Na & Sungmin Kang, 2018. "Sustainable Diffusion of Fashion Information on Mobile Friends-Based Social Network Service," Sustainability, MDPI, vol. 10(5), pages 1-23, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:7564-:d:589723. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.