The journey toward agility

Historically, US firms have increased production volumes to gain economies of scale and operating efficiencies. Quality, dependability, and flexibility have more recently become competitive weapons. In today’s dynamic, global marketplace, some have suggested that the next competitive dimension will be agility. Current research suggests cumulative and lasting improvements of strategic capabilities can be achieved if they are developed in a specific sequence. This paper reviews the historical competitive environment and changes in strategic responses; reviews relevant research on competitive capabilities and suggested trade‐offs in these capabilities; and offers a model which suggests how firms may build cumulative and lasting improvements in strategic competitive capabilities including agility.