Business Strategy and Firm Performance Through Organizational Agility Under Digital Transformation
DOI:
https://doi.org/10.59890/ijmbi.v4i4.51Keywords:
Business Strategy, Organizational Agility, Firm Performance, Digital Transformation, PLS-SEMAbstract
Digital transformation has encouraged organizations to develop adaptive capabilities to preserve competitive performance in rapidly changing business environments. This study explores the influence of business strategy on firm performance by examining organizational agility as a mediating factor within digital transformation contexts. A quantitative approach was conducted through a survey involving questionnaires distributed to 120 employees from organizations in Malang Raya, East Java, Indonesia. Data analysis was performed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that business strategy positively influences organizational agility and firm performance, while organizational agility significantly mediates their relationship. The study highlights organizational agility as a strategic capability that supports improved performance and provides valuable theoretical and practical insights for organizations undergoing digital transformation.
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