Agility and Operational Performance with Mediating Link of Sustainability: Case of Pakistani Oil and Gas Sector

Abstract

Drawing on Theory of Dynamic Capabilities, this study aims to test agility as a lead predictor of operational performance. Further it intends to investigate the mediating role of sustainability in the relationship between agility and operational performance. Data for the study was collected from the oil and gas sector of Pakistan during a time span of 2011-2020. Data for the study were collected from the annual reports of oil and gas companies listed on the Pakistan Stock Exchange (PSX). E-views software is utilized to perform multiple regression analysis. Regression results reveal that agility and sustainability are key predictors of operational performance. Further results also confirmed the mediating role of sustainability between agility and operational performance. Our study extends literature on economic and social benefits of organizational agility. This study has implications for theory and practice. It implies that managers and practitioners need to understand the concept and each dimension of agility and how it correlates with the sustainability. So, they can identify the factors that need to be prioritized which are not only beneficial for companies but also for the communities where they operate.