Strategic agility in the SME: Use it before you lose it
This empirical study investigates strategic agility and its relationships with firm age, firm size, and firm performance in SMEs. The Doz and Kosonen three-factor model of strategic agility is operationalized and tested in 30 firms from multiple industries located in the Space Coast region of Florida. It is found that strategic agility decreases as firms grow older but not as firms grow larger. Strategic agility and firm performance are also found to be related as moderated by environmental turbulence. Specifically, performance increases with strategic agility in high turbulence but decreases with strategic agility in low turbulence. This finding is consistent with the view that dynamic capabilities like strategic agility bear a cost which may be unnecessary in stable environments. Overall, the study suggests that SMEs may benefit from strategic agility if it used while they still have it, that is, when they are young.
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Copyright (c) 2021 Jonathan Reed
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