How Agile Leadership Boosts Value Creation Through Dynamic Capabilities

What is it about?

This article explores the relationship between agile leadership, dynamic capabilities, and value creation in the context of economic sustainability. It examines the mediating role of dynamic capabilities in the effect of agile leadership on value creation. The study collected data from 540 middle and upper-level managers in medium and large enterprises in northwestern Turkey. Using Structural Equation Modeling, the research found that dynamic capabilities fully mediate the impact of agile leadership on value creation. The study aims to contribute to a leadership-based theory of dynamic capabilities and value creation, addressing gaps in existing leadership theories. It also emphasizes the importance of agile leadership and dynamic capabilities as resources for value creation and economic sustainability, highlighting the significance of resource integration for sustainable outcomes.

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Photo by Campaign Creators on Unsplash

Photo by Campaign Creators on Unsplash

Why is it important?

This research is significant because it explores the relationships between agile leadership, dynamic capabilities, and value creation in the context of economic sustainability. By examining the mediating role of dynamic capabilities in the effect of agile leadership on value creation, the study contributes to a leadership-based theory of dynamic capabilities and value creation. This research is particularly important as it addresses gaps in the existing literature by empirically investigating the interactions between these variables, which have not been extensively studied together before. The findings can provide valuable insights for businesses seeking to enhance their competitiveness and sustainability in rapidly changing environments. Key Takeaways: 1. Mediation Effect: The study demonstrates that dynamic capabilities fully mediate the impact of agile leadership on value creation, highlighting the importance of developing dynamic capabilities as a means to translate agile leadership into tangible value for organizations. 2. Sustainability Focus: By considering value creation as a contributor to economic sustainability, the research emphasizes the importance of leadership and organizational capabilities in achieving sustainable outcomes in business. 3. Resource Integration: The study underscores the significance of agile leadership and dynamic capabilities as resources for value creation, emphasizing their role in resource integration to achieve sustainable outcomes and contribute to economic sustainability.