Strategic Agility and Firm Performance: The Moderating Role of Organisational Culture

Firms around the world experienced challenges of matching organizational culture with strategies and overall firm performance. Managers of most business organisations in today’s competitive environment find it difficult to constantly achieve targeted performance due to poor strategic response to uncertain and unexpected changes in the business environment and mismatch of organisational culture with 21st century globalization trends. Majority of firms especially in the developing countries have recorded unstable performance resulting from their inability to interpret strategic agility initiatives and evolve organisational culture adaptable with the challenges of global business trend. Theoretically, the study was conducted to investigate the link between strategic
agility and firm performance with organisational culture as the moderating variable. The Dynamic Capability theory was the underpinning theory for the study. Thus, a conceptual model was developed to depict the interaction between strategic agility and firm performance through organisational culture as the moderator. Majority of past literature showed that strategic agility and organisational culture enhance firm performance. This paper recommended that organizational managers should employ strategic agility conceptual measures with organizational culture in their business thinking, activities, processes and direction to achieve overall performance.