The impact of balanced agile project management on firm performance: the mediating role of market orientation and strategic agility
Review of International Business and Strategy
ISSN: 2059-6014
Article publication date: 15 July 2020
Issue publication date: 24 October 2020
Abstract
Purpose
This study aims to examine the impact of balanced agile project management (balanced APM) on firm performance through the mediating role of market orientation and strategic agility of medium and large telecommunication technology providers in Indonesia.
Design/methodology/approach
Research data was collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit through confirmatory factor analysis and causal relationships through structural equation modeling.
Findings
The results indicate that market orientation mediates the link between balanced APM and strategic agility and that strategic agility mediates the link between market orientation and firm performance.
Research limitations/implications
The choice of single telecommunication industry in a single country, Indonesia, provides a limitation on external validity. It is, therefore, suggested to extend the research efforts to other industry sectors in multi-country environments.
Originality/value
This study extends the knowledge about agile project management by embracing balancing control enforcement and tests it empirically. This study also re-conceptualizes strategic agility to embrace business partner switching capability and market orientation to embrace the inter-partner coordination dimension. Finally, the results highlight that agile project management needs to be framed by market orientation to create higher value for customers. However, market orientation alone is not enough and that the organization requires strategic agility to achieve firm performance.
Keywords
Acknowledgements
The authors are grateful to the Co-Editors, Assoc. Prof Hussain Rammal and Professor Elizabeth Rose, for their guidance and to the two anonymous reviewers for their comments and suggestions.
Citation
Kurniawan, R., Budiastuti, D., Hamsal, M. and Kosasih, W. (2020), "The impact of balanced agile project management on firm performance: the mediating role of market orientation and strategic agility", Review of International Business and Strategy, Vol. 30 No. 4, pp. 457-490. https://doi.org/10.1108/RIBS-03-2020-0022
Publisher
:Emerald Publishing Limited
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