The moderating role of strategic agility on the relationship between entrepreneurial orientation and organisational performance

Abstract

Existing research has indicated that the strength of the relationship between entrepreneurial orientation (EO) and organisational performance (OP) is contingent and that through the theoretical lens of dynamic capabilities (DC), strategic agility (SA) moderates the relationship between EO and OP. This explanatory quantitative research study, using 138 organisations from different industries, seeks to determine if SA moderates the relationship between EO and OP. The study considered the five dimensions of EO, which included risk-taking innovativeness, proactiveness, competitive aggressiveness and autonomy, and the three dimensions of SA, which included strategic sensitivity (SS), collective commitment (CC), and resource fluidity (RF). A linear regression analysis found a positive relationship between EO and OP. However, the moderated multiple regression performed using Process v3.5 within SPSS found that although SA does not moderate the relationship between EO and OP, SA supports EO in improving OP, which suggests that organisations should develop both EO and SA in order to improve OP.