The increasing pace of technological advancements, market volatility, evolving customer demands, and intensifying competitive pressures has heightened the need for firms to strengthen their adaptive capacity in order to sustain superior performance. Strategic agility has emerged as a critical dynamic capability that enables firms to sense emerging opportunities, seize them rapidly, and reconfigure resources in response to environmental shifts. This study conducts a comprehensive review of conceptual, theoretical, and empirical literature to examine the influence of strategic agility on firm performance. Specifically, the study reviews existing literature on the concept of strategic agility and its related constructs, identifies emerging conceptual, theoretical, and empirical gaps, examines the literature on firm performance and its associated dimensions, and proposes an appropriate theoretical framework to address the identified gaps and guide future research. Drawing on the Dynamic Capabilities perspective and the Resource-Based View (RBV), the study conceptualizes strategic agility as comprising strategic sensitivity, resource fluidity, and leadership unity, which collectively enable firms to maintain strategic coherence under conditions of uncertainty. The proposed framework, which emphasizes the direct relationship between strategic agility and firm performance, offers both theoretical and methodological contributions to the strategic management literature. It also provides practical insights for managers seeking to leverage strategic agility to sustain performance in dynamic environments. Furthermore, the framework lays a foundation for future empirical research aimed at operationalizing these constructs and validating their interrelationships across diverse industry contexts.
Ireri et al. (Fri,) studied this question.
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