Boosting Organizational Agility Through Situational Leadership and Islamic Values: Evidence from Indonesian SMEs

In this era of rapid change, organizations require Agility to survive, and the ability to apply Agility can be cultivated through Situational Leadership and Islamic OCB, among others.This study analyzes the impacts of situational leadership and Islamic organizational citizenship behaviors (OCB) on organizational agility among 180 small business owners and managers in Indonesia's Kasongan pottery industry.Using structural equation modeling, results demonstrate that situational leadership involving adaptable decision-making positively influences both Islamic OCB practices and agility.Additionally, Islamic OCB is shown to directly enhance agility and strengthen the leadership-agility relationship when modulated.The research provides practical evidence that developing more flexible, employee-focused leadership approaches could effectively improve Islamic values-based employee performance and responsiveness to market changes.Overall, the work makes both empirical and practical contributions by extending application of situational leadership and Islamic OCB theories to agility for SMEs.