The Effect of Organizational Agility on Organizational Performance

Document Type : Original Article

Authors

1 International Business, Faculty of Economics and International Trade, Egyptian Chinese University, Cairo, Egypt

2 International Business, Faculty of Economics and International Trade, Egyptian Chinese University, Cairo, Egypt.

Abstract

Rapid changes that are happening in the market oblige any organization to be agile for its performance to be enhanced in the investment sector. Organizational agility (OA) is a complex and multidimensional concept. One of the challenges in researching organizational agility (OA) is its unified definition and concept. Organizational performance (OP) is becoming a generally acknowledged and used concept. It quickly extended from the developed world to the developing countries, from the private sector to the public sector. Organizational agility is extremely important for an organization’s performance to improve. So, for any organization to improve its performance, its employees must be agile.
The purpose of this research is to study the effect of organizational agility on organizational performance and to identify the level of organizational agility and organizational performance at the General Authority for Investment and Free Zones (GAFI). Moreover, it highlighted the significant role of organizational agility in improving organizational performance in the investment sector in Egypt. Furthermore, it assessed the degree to which organizational agility influenced organizational performance.
A research questionnaire was conducted on site with 110 of the top, middle, and frontline levels of management. Only 100 responses were valid and used in our evaluation. The research has shown the importance of organizational agility and its strong correlation with organizational performance. Also, the results revealed that there is a statistically significant effect of organizational agility and its dimensions (strategy, speed, innovation, flexibility, and employees’ skills) on organizational performance.
The research recommended that GAFI should have a more agile mindset among all its employees, whether they are from the top, middle, or first management levels, for the best performance by providing expertise who can give trainings, lectures, and seminars that deliver the concept of how to have an agile mindset.

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