Business Agility: Which Are the Factors That Really Matter?

Abstract

Business Agility is identified as the set of practices that help organizations thriving in volatile, uncertain, complex and ambiguous operating context. While the literature reports numerous qualitative papers, there is few quantitative studies that provide a consistent analysis of the factors that matter. The purpose of this study is to review under the lenses of structural equation modeling the model suggested by the Business Agility Institute. This model suggests 4 dimensions made of 13 domains that reflects the Business Agility Maturity of an organization. Since 2018, the Institute collects data worldwide with a questionnaire based on that very model. This provides a unique opportunity to review the model using Confirmatory Factor Analysis leveraging on the collected observations to confirm the proper reflection of all items on their respective domain and the goodness of fit of the model. Most of the indicators suggest that observations are fitting with the suggested model and report a fair convergent validity while the discriminant validity appears under the desired level due to the cross-charging characteristics of various items; this may be attributed to the systemic characteristics of the Business Agility. This paper may therefore contribute to the body of knowledge around the future and work. It does provide a basis for further research and a framework for companies who are interested in developing their Business Agility.