Mediating Effect of Organizational Agility in the Relationship between Adaptive Management and Firm Performance in Indonesian Telecommunication Companies during Pandemic COVID-19

Abstract

This paper aims primarily to examine the direct effect of Adaptive Management on Firm Performance during the COVID-19 pandemic and to measure the mediating role of organizational Agility in the relationship between adaptive Management and firm performance. For these purposes, quantitative research was applied with reference to the survey, and an empirical survey was conducted with the active participation of 368 Board of Directors and Senior Leaders of Telecommunication companies in Indonesia. In addition to the survey, seven face-to-face interviews were conducted to clarify the results of quantitative data. The quantitative data were further analyzed with co-variance-based Structural Equation Analysis (SEM) analysis using LISREL. Significant results indicate that Adaptive Management positively affects telecommunication companies’ performance, both directly and indirectly, through organizational Agility. The study suggests Telecommunication Companies be adaptive, flexible, and collaborative with extraordinary plans to respond to external and internal situations during and after the pandemic COVID-19.