Adapting to environmental turbulence is mandatory for every player in the banking sector. They need to develop rational strategies and respond effectively. Environmental Turbulence especially market turbulence and technological turbulence, which happen lately in banking industry, require firms to review their strategies continuously. Strategic agility with its dimensions: strategic sensitivity, resource fluidity, and collective commitment, is a capability of a firm that has been identified as a key to succeed in a highly competitive and rapidly changing environment. Strategic agility is also known as a source of competitive advantage which will also enhance performance of the firm. This study tries to examine strategic agility and its dimension and reveal its importance in the banking sector in order to gain competitive advantage in environmental turbulence. Furthermore, this study explores the application of strategic agility and its potential to improve unit performance through competitive advantage. The population of this study is managers in one of private bank in Indonesia. This study uses Structural Equation Modelling (PLS-SEM) to analyze the data. Findings of this study suggest that strategic agility has a role to gain competitive advantage by taking advantages from environmental turbulence specifically in market and technological turbulence which in turn will also improve firm performance.
Purpose
This study aims to investigate the relationship between task environment, organizational agility, perceived managerial discretion and strategy implementation on unit performance.
Design/methodology/approach
Based on the literature review, a structural model was developed. A 74-item questionnaire was circulated among middle managers in sales and marketing. The data collection method used purposive sampling. A total of 228 valid responses were obtained. This study was conducted in a leading pharmaceutical company in Indonesia. The data were analyzed using structural equation modeling.
Findings
Based on the data analysis, this study shows that task environment and organizational agility act as antecedents of perceived managerial discretion, which drives strategy implementation resulting in unit performance.
Originality/value
Different from previous studies that examined the linkage of inertial forces and discretion, this research scrutinized the effects of organizational agility on perceived managerial discretion and the direct role of perceived managerial discretion on internal strategy implementation.
The rapidly changing and disruptive environment makes the business competition more hypercompetitive. The fundamental challenge that companies often face is not in the strategic planning process, but rather on how to ensure the formulated strategy can be well-implemented. Currently, the literature is still dominated by theories and practical advice on planning and strategy formulation, and there is only limited studies on the role of discretion on strategy implementation. Therefore, this study aimed to find out what is the role of perceived managerial discretion in the process of strategy implementation and its implications on organization performance. By reviewing the literatures, this study examined whether task environment, organizational agility and cognitive complexity influence the managerial discretion, and whether strategy implementation mediates perceived discretion of middle manager and organization performance. This paper presented a proposed research model, four propositions that need to empirically be tested, proposed research method, and a conclusion.
The objective of this research is to distinguish the effect of work environment on the performance of judges and court clerks in the Riau Islands Province of Indonesia, and the impact of motivation and job satisfaction as intervening variables in influencing the model. A census questionnaire was produced and validated employing a pilot data. A total of 109 questionnaires were distributed to judges and court clerks in Riau Island Province and all questionnaires were returned and validated. Regression was utilised to predict and measure the correlations; thus, the outcomes statistically suggest that there are a meaningful and positive impact in the model. The mediation test indicates that motivation and job satisfaction act as mediating variables (partial mediation) and mediate the relationship between the work environment and the performance of the judges and court clerks. This research implies that a good working atmosphere results in a better motivation and job satisfaction that boosts the working performance. Judges and court clerks enjoy considerable benefits if the determinant were being addressed. This study has extended the existing literature by identifying the mediating role of motivation and job satisfaction on determinants affecting work performance of judges and court clerks, specifically in the Indonesian context.
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