Strategic Agility For Organizational Adaptation In Volatile Environments: A Study of Managers In Climate Vulnerable SMEs
Keywords:
Strategic Agility, Organizational Adaptation, Dynamic Capabilities, Climate Vulnerability, SMEs, Environmental Volatility, Circular Economy, ResilienceAbstract
SMEs in particularly vulnerable regions of the world, and subjected to Environmental Institutional Strain (EIS), are facing the actual danger of extinction. Climate change is notable, and SMEs, which are concerned with EIS (socio-economic), are at a real risk of being wiped out. To withstand these conditions and remain adequately performing, such SMEs will need to build robust, effective adaptation mechanisms. To this end, this conceptual paper examines the importance of strategic agility within the shifting landscape of dynamic capabilities and how it facilitates organizational survival and adaptation in such dynamic, turbulent settings as outlined. Engaging with both the Dynamic Capability Theory (DCT) and Circular Economy (CE) Theory, the paper proposes an integrated model in which strategic agility is captured as the mediating mechanism situated within the connection of the core three key antecedents: environmental scanning, resilience training, organizational ambidexterity and organizational adaptability as the outcome. The model also articulates the moderating influence of environmental turbulence on the above relationships, suggesting the increased importance of agility in responding. By building on the literature, the authors suggest hypotheses based on the plausible theoretical routes which managers in climate vulnerable SMEs resilient, strategic focus and organizational ambidexterity to thrive and climate ill and climate vulnerable SMEs resilient, strategic focus and organizational ambidexterity to thrive and climate ill proposed to offer to the managers of such SMEs and to describe to the managers of such proposed to provide to the managers of such climate vulnerable SMEs and climate ill climate. The proposed model helps close the gap in the integration of DCT and CE within the literature and, within the climate ill, climate vulnerable, proposes to provide managers of such climate-vulnerable SMEs and climate-ill SMEs
Downloads
References
Alfarajat, J. (2023). Strategic agility and supply chain agility: Potential antecedents of SMEs performance. Uncertain Supply Chain Management, 11(5), 1–12.
Aswan, A. (2023). Moderation role of strategic agility in the relationship between entrepreneurial orientation and competitive advantage in SMEs. Jurnal Manajemen Bisnis, 14(1).
Clauss, T., Kraus, S., Kallinger, F. L., Bican, P. M., Brem, A., & Kailer, N. (2024). Strategic agility in entrepreneurship: A comprehensive meta-analysis and research agenda. Journal of Business Research, 177, 114609.
Engga, E. J., Sobandi, A., & Santoso, B. (2024). SMEs performance based on strategic leadership: The role mediating of dynamic capabilities. The Eastasouth Management and Business.
Fehrer, J. A., Kemper, J. A., & Baker, J. J. (2023). Shaping circular service ecosystems. Journal of Service Research, 27(1), 49–68.
Ferreira, J., Mueller, J., & Papa, A. (2022). Strategic knowledge management in the digital age: A multi-faceted perspective. Journal of Knowledge Management, 26(5), 1125-1152.
Feng, H., & Rani, S. (2024). Strategic agility in a digital age: Exploring the role of dynamic capabilities in organisational adaptation. Uniglobal Journal of Social Sciences and Humanities, 3(2).
Halim, H., Zainal, S. R. M., & Ahmad, N. (2022). Strategic foresight and agility: Upholding sustainable competitiveness among SMEs during COVID-19 pandemic. International Journal of Economics and Management, 16(1).
Harris, J., & Brooker, R. (2025). Environmental scanning: A look to the future. New Directions for Evaluation.
IPCC. (2022). Climate Change 2022: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press.
Jafari‐Sadeghi, V., Mahdiraji, H. A., Busso, D., & Yahiaoui, D. (2022). Towards agility in international high-tech SMEs: Exploring key drivers and main outcomes of dynamic capabilities. Technological Forecasting and Social Change, 178, 121272.
Khan, S. A., Kusi-Sarpong, S., Gupta, H., & Iddris, F. (2024). Implementing sustainability in SMEs: The role of strategic flexibility and green supply chain management. Business Strategy and the Environment, 33(1), 298-317.
Kumar, S., Dutta, D., & Malik, S. (2023). Environmental scanning and organizational resilience: The mediating role of strategic agility. Global Journal of Flexible Systems Management, 24(2), 243-260.
Kumar, V., & Sharma, R. R. K. (2024). Organizational ambidexterity and innovation performance: The moderating role of leadership support. Journal of Business Research, 174, 114517.
Lavdari, F., & Lavdari, X. (2024). Organizational agility and performance: A time-series analysis of crisis response. Qeios.
Nurfitriani, S., Rifan, D. F., & Sanjaya, V. F. (2024). The influence of strategic agility on competitive advantage with organizational ambidexterity as mediation at MSME's in Bandar Lampung. Assets: Jurnal Ekonomi, Manajemen dan Akuntansi.
Nuwan, N., Shukri, M., & Khatibi, A. (2024). Digging deeper into organisational resilience through strategic agility and strategic orientation: A study from the perspective of Sri Lankan SME leaders. Sri Lanka Journal of Social Sciences, 47(1).
Panichakarn, B., Pochan, J., Shafiq, M., Saleem, I., Wang, Y., & Nazeer, S. (2024). The interplay of digital transformation, agility, environmental volatility, and innovation to spur enterprise performance: Evidence from Chinese electric vehicle firms. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 100408.
Paulino, R., & Manalo, J. (2025). The bridge to business evolvability: Strategic agility's mediating role for innovation and collaboration. Future Business Journal.
Pelletier, C., L'Écuyer, F., & Raymond, L. (2025). Building organizational agility through digital transformation: A configurational approach in SMEs. Industrial Management & Data Systems.
Prieto, L., & Talukder, M. F. (2023). Resilient agility: A necessary condition for employee and organizational sustainability. Sustainability, 15(2), 1552.
Putra, R., & Masnita, A. (2025). Leveraging digital transformation leadership and customer agility to enhance SME performance in the Riau Islands, Indonesia. International Journal of Business Ecosystem & Strategy, 7(2).
Rawashdeh, A., Abdallah, A. B., Alfawaeer, M., Al Dweiri, M., & Al-Jaghbeer, F. (2024). The impact of strategic agility on environmental sustainability: The mediating role of digital transformation. Sustainability, 16(3), 1338.
Reed, M. (2022). Leveraging strategic agility in the pandemic environment. Global Journal of Entrepreneurship, 6(1).
Renfrew, D., Vasilaki, V., McLeod, A., Lake, A., Danishvar, S., & Katsou, E. (2022). Where is the greatest potential for resource recovery in wastewater treatment plants? Water Research, 220, 118673.
Schlosser, K. P., Spilbergs, A., & Volkova, T. (2023). The effect of ambidextrous strategic leadership on creating shared value. International Journal of Economics and Business Administration, 11(2), 34–49.
Shams, R., Vrontis, D., Weber, Y., & Tsoukatos, E. (2023). The role of dynamic capabilities in organizational agility and business model innovation during crises. Journal of Business Research, 165, 114047.
Shojaee, A., & Vasa, L. (2024). Relationship between dynamic capability view and organizational resilience: Findings from a symmetric approach. Problems and Perspectives in Management, 22(4), 51–63.
Sidabutar, A., & Siswanto, J. (2024). The impact of digital transformation in the food and beverage sector SMEs: The role of leadership and organizational agility. E3S Web of Conferences, 484, 01017.
Trieu, P. Q., & Nguyen, T. D. (2025). Information technology capabilities enhance business performance: The role of organisational agility, ambidexterity, and regulatory support. Asian Academy of Management Journal, 30(1).
Uddin, A., Cetindamar, D., Hawryszkiewycz, I., & Sohaib, O. (2023). The role of dynamic cloud capability in improving SMEs' strategic agility and resource flexibility: An empirical study. Sustainability, 15(11), 8467.
Ürü, F., Gözükara, E., & Ünsal, A. A. (2024). Organizational ambidexterity, digital transformation, and strategic agility for gaining competitive advantage in SMEs. Sosyal Mucit Academic Review, 1(1), 22–40.
Williams, T. A., Gruber, D. A., Sutcliffe, K. M., Shepherd, D. A., & Zhao, E. Y. (2023). Organizational response to adversity: A review and roadmap for future research. Journal of Management, 49(5), 1763-1802.
Xu, X., & Zhang, Y. (2024). How digital transformation enhances corporate innovation performance: The mediating roles of big data capabilities and organizational agility. Heliyon, 10(6), e34905.
YahiaMarzouk, Y., & Jin, J. (2022). The relationship between environmental scanning and organizational resilience: Roles of process innovation and environmental uncertainty. Frontiers in Environmental Science, 10.
Yuen, T. M., & Baskaran, S. (2024). Optimizing sustainable business performance: The role of SME agility in digitalization. International Journal of Academic Research in Business and Social Sciences, 14(1).
Zahoor, N., Golgeci, I., Haapanen, L., Ali, I., & Arslan, A. (2022). The role of dynamic capabilities and strategic agility of B2B high-tech small and medium-sized enterprises during COVID-19 pandemic. Industrial Marketing Management, 105, 502–514.
Zhang, J., Li, H., & Zhao, H. (2025). The impact of digital transformation on organizational resilience: The role of innovation capability and agile response. Systems, 13(2), 75.
Zhang, Y., & Chen, X. (2024). Top of tide: Nexus between organizational agility, digital capability, and top management support in SME digital transformation. Heliyon, 10(2), e31579.
Published
How to Cite
Issue
Section
Copyright (c) 2025 The Sultan Alauddin Sulaiman Shah Journal (JSASS)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
