The mediating role of organizational innovation on the impact of strategic agility on firm performance

Purpose - The field of strategic management mainly concerns with the achievement and sustainability of competitive advantage since the sustainability of strategic competitive advantage is more challenging. The concept of innovation can also be regarded as a to respond continuously changing environmental conditions and to sustain firm profits. The aim of this paper is to examine the mediating role of organizational innovation for the impact of strategic agility on firm performance and to determine the relationship among variables. Although there is a significant amount of work on organizational innovation, literature is still lacking in the debate on strategic agility and firm performance. Design/methodology/approach - An online questionnaire was administered to 216 firms operating in the Sakarya Organized Industrial Zone (Marmara Region of Turkey) during September-December 2019 and the data were analyzed using structural equation analysis for hypothesis testing. Findings - Results reveal that strategic agility has a positive impact on both firm performance (beta=0.895) and organizational innovation (beta=0.854), and organizational innovation (beta=0.485) plays a partial mediating role on this relationship. Originality/value - The results of this study improve our understanding of how these factors affect firm performance in the organized industrial zone.