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ORGANIZATIONAL AGILITY: WHAT IT IS, WHAT IT IS NOT, …

P1 11813 ORGANIZATIONAL AGILITY: WHAT IT IS, WHAT IT IS NOT, AND WHY IT MATTERS p2 11813 ORGANIZATIONAL AGILITY: WHAT IT IS, WHAT IT IS NOT, AND WHY IT MATTERS ABSTRACT ORGANIZATIONAL agility defined loosely as a combination of flexibility, nimbleness, and speed is increasingly regarded as a source of competitive advantage in today s fiercely competitive and fast changing markets. We aim to tighten and explicate a conceptualization of ORGANIZATIONAL agility that clarifies what it is and what it is not. We theorize that agility is a bi-dimensional concept that involves a change in (a) magnitude of variety ( , flexibility) and/or (b) rate of variety generation ( , speed) in a firm s product and service offerings for sensing and responding to environmental changes. We posit three strategic movements that reveal distinct avenues for competitive advantage based on a firm s agility: (1) focusing on flexibility or speed as dominant objectives, (2) oscillating between flexibility and speed constrained by tradeoff frontiers, or (3) breaking through tradeoff frontiers to simultaneously increase flexibility and speed.

Organizational agility—defined loosely as a combination of flexibility, nimbleness, and speed— ... Keywords: agility, organizational change, organizational learning . p3 ... 2 Proposed by 17 leading software developers and consultants, the agile manifesto emphasizes four principles that

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