Boosting firm performance via enterprise agility and network structure

Abstract

Purpose-Drawing on a network perspective on enterprise agility, the purpose of this paper is to explore whether firms with superior network structure not only may be better able to generate direct effect on firm performance, but whether a superior network structure may also help firms to create better firm agility and thus enhance their performance. Design/methodology/approach-The study employed a survey method and data were collected from 250 companies in Taiwan's glass industry. Using structural equation modeling (SEM) technology, it specified the measurement properties of survey instrument such as reliabilities and validities and then identified causal relation among latent constructs to examine causal effects of hypotheses testing. Findings-The results show that a firm's agility capability and its network structure are a critical competitive strategy source of firm performance. Moreover, network structure also partially mediates the impact of enterprise agility on firm performance. Research limitations/implications-Because the data were collected from a single industry and firm performance is evaluated by subjective managerial assessments, further research may be necessary by using the data involving multiple industries with objective performance indices for more meaningful and generalized results. Practical implications-The findings confirm the importance of enterprise agility for contemporary firms in today's dynamic business environment. By reinforcing enterprise agility, firms could react better to unpredictable changes. In addition, firms also are suggested to put more effort into developing and maintaining their network structures, both as repositories of external resources and as boosters of enterprise agility. Originality/value-The paper provides evidence regarding the impact of enterprise agility and network structure on firm performance.

A hybrid approach to achieve organizational agility

“…Different terms are used in the literature to refer to agility at organizational level: enterprise agility (Yang & Liu, 2012), business agility (Morgan, 2004), and organizational agility (Nejatian & Zarei, 2013). Despite some minor differences, they can be interchangeably used.…”

The Status of Enterprise Agility In Comparison With Competitors

“…Despite different perspectives are proposed for agile organizations, agility could be defined in terms such as sensing, responding, learning, adaptability, resilience, innovation, concurrency and efficiency [20]. As a matter of fact, study of Worley and Lawler shows that agility forms are different in every organization [21].…”

“…Reference [20] points out that agility has three dimensions: operational agility (the ability to use business opportunities quickly, properly and costefficiently), customer agility (the ability to learn from customers as well as explore and exploit the new identified business opportunities) and partnership agility (the ability to strength business partner's competencies and knowledge). Also, it proposed a fuzzy logic based assessment model for measuring the Information System agility.…”

“…In literature, there are diverse approaches in treating the agility issue which can be classified as four categories [20]: the identification of the capabilities of agility, the recognition of the agility levels, the proposition of conceptual framework and the measurement of agility. The following part deals with the fourth category and investigate methods and approaches of measuring agility.…”

Ranking of Leagility Factors Based on Job Satisfaction through a Combinatory Model of Fuzzy TOPSIS and AHP (Case Study: M.R.I Hospital, Shiraz, Iran)

“…Organization agility on the other hand, has been introduced as one of the effective variables and factors on job satisfaction [3] which could be defined as: a complicated multi-dimensional concept [4] that includes the ability to feel environmental changes as well as swift responsiveness to unpredictable changes [5]. Lean service providing is also among the effective factors on job satisfaction that leads to satisfaction through lower waste and higher quality as well as on time services.…”