Enhancing company performance and profitability through agile practices: A comprehensive analysis of three key perspectives

Abstract

This research aims to reveal the role of three types of agility (employee agility, work method agility, and organizational agility) in improving company performance and profitability. In this research, a quantitative survey was carried out using a questionnaire adapted by the author based on learning agility and organizational agility theories. Five hundred and ninety-seven respondents from 25 companies, 13 sub-industries in Indonesia were taken as samples using the purposive sampling method. Data analysis was carried out using Smart PLS3. The research results show that the three dimensions of agile have a beneficial impact on the performance and profitability of the company. It was found that the impact of agile work approaches on corporate performance productivity and profitability was more significant than employee agility and organizational agility. These findings have implications for companies that implement agile work methods more optimally to improve company performance and profitability. Apart from that, companies also need to pay attention to the importance of developing employee skills and organizational flexibility amidst the swift transformations in the corporate landscape. This research contributes to management literature, especially in expanding understanding of the influence of agile dimensions on company performance and profitability.