Strategic Agility and Innovation Performance under Environmental Uncertainty: JEL Classification: M10, M19, O31, D81, O32

Deby Nugraha; Andi Khusnul Khatimah

doi:10.37899/mjdm.v3i3.396

Authors

Deby Nugraha Management Study Program, Universitas Muhammadiyah Makassar, Indonesia
Andi Khusnul Khatimah Management Study Program, Universitas Muhammadiyah Makassar, Indonesia

DOI:

https://doi.org/10.37899/mjdm.v3i3.396

Keywords:

Environmental Uncertainty, Innovation Performance, Organizational Adaptability, Strategic Agility, Strategic Management, Dynamic Capability

Abstract

Environmental uncertainty has intensified organizational challenges by creating rapid technological changes, unpredictable market dynamics, and increasing competitive pressures. Under such conditions, organizations require adaptive capabilities that enable them to maintain innovation performance and achieve sustainable competitiveness. This study examines the influence of strategic agility on innovation performance under environmental uncertainty by developing an integrated framework based on the dynamic capability perspective. Using a quantitative research approach, data were collected from 228 managers and organizational decision-makers operating in dynamic industries. The proposed model was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that strategic agility has a significant positive effect on innovation performance, demonstrating that organizations with stronger capabilities in strategic sensitivity, collective commitment, and resource fluidity achieve superior innovation outcomes. The results also indicate that environmental uncertainty strengthens the relationship between strategic agility and innovation performance, highlighting the contextual importance of adaptive capabilities in volatile environments. This study contributes theoretically by extending strategic management literature through the integration of strategic agility, environmental uncertainty, and innovation performance within a unified framework. Practically, the findings provide insights for managers seeking to develop adaptive strategies that enhance innovation capability and organizational resilience in increasingly uncertain business environments.

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