Microfoundations approach to strategic agility – Exploration to operationalization

Abstract

Strategic agility (SA) has become an established construct in strategic management literature. SA has been an existential element in firms for superior firm responsiveness towards market requirements. The presence of SA in organizations resulted in achieving competitive superiority. However, there has been dearth of literature regarding the enablers of SA in organizations. The authors explored this based upon an exploratory study by anchoring the study in the banking industry, which was witnessing dynamic shifts in both the operating environment and the industry landscape. The research purpose was to build a process level understanding of SA through microfoundation approach. Data were collected from 34 expert bankers. Using content analysis technique, the researchers found 11 microfoundations. The two meta-capabilities of SA were strategic sensitivity and resource fluidity. Identification of these microfoundations would help managers to promote organizational SA and undertake effective and sustainable firm initiatives towards market response.