Organizational agility is a firm-wide dynamic capability to cope with rapid, relentless, and uncertain changes and thrive in a competitive environment of continually and unpredictable changing opportunities. A conceptual model is drawn up, based on the literature and a previous qualitative inquiry, to identify agility enablers that help organizations to sustain in dynamic environments. Further, the model explores the relationship between organizational agility and firm performance as well as the moderating effect of environmental dynamism on this relationship. The validity of the construct is assessed by means of a quantitative study using a survey methodology. A data set consisting of 348 German-based companies is analysed on a business unit level as well as for the organization as a whole. Partial least squares path modeling (PLS-SEM) results reveal that four dimensions (organization, innovation, people and knowledge management), comprising various agility enablers, positively influence organizational agility. Moreover, results indicate that organizational agility has a significant effect on firm performance and that this relationship is modearted by environmental dynamism. Therefore, this study contributes to a better understanding of the complex nature of the agility construct and provides guidelines how organizations can achieve an agile alignment. It further emphasizes the need for managers to integrate agile practices in order to outperform competitors in hypercompetitive and turbulent business environments.

• Fabian P.W. Schrempf(Ludwig-Maximilians-Universität Munich, Germany)
• Manfred Schwaiger(Ludwig-Maximilians-Universität Munich, Germany)