Strategic agility in MNEs: Navigating the environmental turbulence caused by new competitors, innovations, and regulations

This study investigates how Multinational Enterprises (MNEs) adjust their strategic agility in response to a turbulent international business environment. Specifically, it examines the influence of new competitors, innovations, and regulatory changes on the components of strategic agility: strategic sensitivity, leadership unity, and resource fluidity. The study analyzes survey data collected from 173 Spanish MNEs in the services sector using partial least squares structural equation modelling (PLS-SEM). New competitors significantly bolster strategic sensitivity and resource fluidity within MNEs. Contrary to expectations, new competitors do not significantly influence leadership unity. Innovations and regulatory changes positively impact all assessed dimensions of strategic agility (strategic sensitivity, leadership unity, and resource fluidity). Together, these findings advance scholarly understanding of how different forms of environmental turbulence shape the components of strategic agility and offer practical guidance to MNE leaders on strengthening market sensing, leadership alignment, and resource reallocation in turbulent international contexts.