The Relationship between Agility Capabilities and Organizational Performance: a Case Study among Home Appliance Factories in Iran

Abstract

Agility capabilities are considered as inescapable features of today’s forward-looking organizations. Those organizations which possess such characteristic would be able to achieve competitive advantage and gain an edge over competitors. In this regard, this paper seeks to explore the agility capabilities of manufacturing firms and its’ impact on organizational performance. Moreover, this study investigates the key principles and features of the agile manufacturing companies and agile manufacturing dimensions. Given the importance of agility capabilities compared to other features of manufacturing companies, this component is selected for the study and its effect on corporate performance is also examined. This study adopts the descriptive survey method and uses questionnaire for the purpose of data collection. Also, the inferential statistical technique is applied in order to data analysis. Spearman's rank correlation coefficient is used to test the hypotheses and the key informants are the managers and employees of manufacturing companies in Iran. The data analysis reveals that there is a significant positive relationship between agility capabilities and performance of the company in the confidence level of 0.99.

Keywords: Agility, Agility Capabilities, Organizational performance, Organizational agility