Linking dynamic managerial capabilities and organizational agility: The role of technological innovation

Abstract

In an era of rapid technological change and increasing environmental uncertainty, organizational agility has become a key driver of firm competitiveness, underscoring the importance of understanding how dynamic managerial capabilities enable agile organizational responses. The current study investigates the relationship between dynamic managerial capabilities and organizational agility, with a particular focus on the mediating role of technological innovation. It employs a quantitative approach, analyzing survey data from SMEs in Vietnam using partial least squares structural equation modeling (PLS-SEM). The findings reveal that dynamic managerial capabilities positively affect organizational agility, and that technological innovation serves as a mediator in this relationship. Managers with strong dynamic capabilities enable firms to enhance their agility through continuous technological advancements. This study contributes to the literature on dynamic managerial capabilities and innovation by empirically validating the role of managerial capabilities in fostering organizational agility through technological innovation. In practice, it provides valuable insights for business leaders on leveraging managerial capabilities and adopting technology to navigate uncertain market conditions effectively.