Different studies have found different results about how certain aspects of strategic agility – strategic speed (SS) and flexibility (SF) – affect companies’ performance. While some researchers show that SS and SF fail to strengthen performance, others disagree. However, insufficient effort has been made to resolve this conflict. This makes it difficult to benchmark industry best practices. It also impedes academic progress in strategic management. This study seeks to offer clarity to the literature. It introduces sustainable innovation as an intervener in the SS–sustainable performance and SF–sustainable performance relationships.
Data were solicited from 587 managers across three industries – mining, banking and food & beverage – in an emerging economy. The data were analysed using partial least squares-structural equation modelling.
Sustainable innovation partially intervened in the SS–sustainable performance and SF–sustainable performance relationships. It explained 25.322% and 47.344% of the variance, respectively. SF accounted for nearly twice the variance compared to SS. The findings revealed that strategic flexibility is more crucial than strategic speed regarding the implementation of sustainability initiatives.
Further research should introduce other mediators, such as organisational ambidexterity. This concept helps to explore new opportunities simultaneously while exploiting existing capabilities. Further studies could also explore the moderating role of sustainable leadership.
Practical lessons for large companies, small- and medium-sized enterprises and government are discussed.
This paper solves a major theoretical puzzle in the field. It explains why some agile companies succeed in sustainability while others struggle. Sustainable innovation is the key differentiator. The paper also shows how traditional strategic concepts like strategic speed and flexibility can be repurposed for sustainability goals. The paper improves our theoretical understanding of which aspects of strategic agility matter most for sustainable outcomes. It contributes to the field of sustainable strategic management.
