The mediating role of innovation capability on the relationship between strategic agility and organizational performance

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.