Organizational agility: do agile project management and networking capability require market orientation?

Abstract

Purpose

This study aims to examine the joint impact of networking capability and agile project management on organizational agility of telecommunication technology providers' in Indonesia. The study also examines the moderating role of market orientation as a predominant strategic orientation on the relationship between agile project management and organizational agility.

Design/methodology/approach

Research data were collected via a questionnaire survey from the executive management of telecommunication technology providers in Indonesia to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit and causal relationship using confirmatory factor analysis and structural equation modeling.

Findings

The results indicate that networking capability positively affects organizational agility. However, agile project management's significant effect on organizational agility occurs only when the relationship is moderated by market orientation. The results of the study also demonstrate that organizational agility positively affects organizational performance.

Research limitations/implications

This study is based on a cross-sectional nature and might fail to capture the studied variables' dynamic over an extended period.

Originality/value

The study enriches the previous literature in organizational agility by presenting the collective impact of networking capability and agile project management and the moderating role of market orientation. However, dissimilar with major prior studies, the results indicate that agile project management's direct effect on organizational agility is not significant. Agile project management needs to be moderated by market orientation to create exceptional customer values and overcome the competition for the organization to achieve organizational agility, responsiveness and adaptability to address customers' needs and requirements. Furthermore, the study's result corroborates the importance of organizational agility to achieve organizational performance in the highly dynamic telecommunication industry.

Citation

Manurung, A.H. and Kurniawan, R. (2022), "Organizational agility: do agile project management and networking capability require market orientation?", International Journal of Managing Projects in Business, Vol. 15 No. 1, pp. 1-35. https://doi.org/10.1108/IJMPB-10-2020-0310