A Conceptual Model of Developing an Agile Work Environment

Abstract

This study has highlighted the need for an agile work environment to enhance companies’ performance, growth, and sustainability. In today’s rapidly changing business world, the goal of every individual and team in a company should be to deliver value to customers. The paper highlights theoretical and empirical evidence on the importance of an agile work environment and its positive effect on company performance. In addition, the paper provides insights into the important concept of developing an agile work environment and offers a conceptual model with five selected constructs, which can be leveraged to build an agile mindset in companies. Moving away from traditional leadership models, this paper highlights the significant role that agile leadership can play in enhancing effectiveness and performance, even in long-established large companies. The empirical research was based on 468 randomly selected medium and large Slovenian companies. Structural equation modelling (SEM) was used to test the model. The empirical results show that changing and adaptive agile companies are the ones that thrive more easily in an environment that is unpredictable and characterized by rapid change.