Strategic Agility and Performance of Accredited Universities in Kenya

Abstract

The main objective of this study was to investigate the effect of strategic agility on performance. The specific objectives were to: examine the relationship between strategic agility and performance; establish the mediating effect of organizational culture on the relationship between strategic agility and performance; determine the moderating effect of environmental turbulence on the relationship between strategic agility and performance; assess the moderating effect of environmental turbulence on the relationship between organizational culture and performance; ascertain the influence of environmental turbulence on the indirect relationship between strategic agility and performance through organizational culture. The study is anchored on three theories: the dynamic capability, contingency, and environment dependency theories. The philosophical approach for the study was positivism and a descriptive cross-sectional research design was employed. Data was collected via questionnaires from 78 accredited universities in Kenya. Descriptive and inferential statistics guided the data analysis while Hayes’ (2022) PROCESS macro models 4 and 15 were used for estimation purposes. The study found a significant positive relationship between strategic agility and performance, with organizational culture acting as a full mediator. Environmental turbulence showed contrasting moderating effects: it hindered the direct relationship between strategic agility and performance (antagonistic effect) but enhanced the relationship between organizational culture and performance (synergistic effect). Additionally, the research uncovered significant moderated mediation, where environmental turbulence moderated the indirect relationship between strategic agility and performance through organizational culture. The study had significant theoretical, knowledge creation, policy, managerial, and methodological implications. The study makes valuable policy and managerial recommendations. Policymakers should encourage agility and supportive culture while managing market volatility. Managers need to integrate agile practices, foster an adaptive culture, and use risk management to handle market turbulence. The limitations of the study include the absence of universally accepted measures for key constructs and the narrow sector focus, which limits generalizability and external validity. The use of a cross-sectional dataset complicates the understanding of temporal dynamics and causality. Further research should employ longitudinal and comparative studies across various sectors, integrate additional mediators and moderators, and utilize innovative methodological approaches like multi-mediation and multi-moderation analysis to provide a comprehensive understanding of these complex relationships, enhancing the applicability and robustness of findings.