The findings are particularly relevant as businesses face rapid technological change, shifting consumer expectations, and increasingly intense competition. Technologies such as artificial intelligence, big data analytics, cloud computing, and interconnected digital platforms are changing how organizations operate and create value.
However, technology investment alone does not automatically improve business performance. Companies also need appropriate strategies, adaptable employees, and organizational processes capable of responding to changes in the business environment.
Business Strategy Drives Organizational Agility
The study by Mansur, Triwijayati, and Tongga examines the relationship between three key factors: business strategy, organizational agility, and firm performance. Digital transformation is also examined as a factor that can strengthen the relationship between organizational agility and firm performance.
Business strategy in the study includes competitive orientation, innovation strategy, and strategic flexibility. Organizational agility refers to an organization's ability to respond to changes, adapt its resources and processes, and make decisions quickly.
Meanwhile, firm performance is not limited to financial results. The researchers also consider operational efficiency, innovation capability, competitiveness, and overall organizational achievement.
The findings indicate that a well-defined business strategy can help organizations become more adaptive. Strategy therefore serves not merely as a planning document but as a foundation for allocating resources and responding to changing market conditions.
Study Involved 120 Employees in Malang Raya
The research used a quantitative survey involving 120 employees from organizations in Malang Raya, East Java. Respondents were selected purposively based on their knowledge of organizational strategies, operational processes, and digital transformation practices.
Of the 120 respondents, 65 were male (54.2%) and 55 were female (45.8%).
In terms of work experience, 48 respondents, or 40 percent, had worked for one to three years. Another 42 respondents, or 35 percent, had four to six years of experience, while 30 respondents, or 25 percent, had more than six years of experience.
By organizational position, 75 respondents, or 62.5 percent, were staff members, while 45 respondents, or 37.5 percent, were supervisors or managers.
Data were collected through questionnaires using a five-point Likert scale. The researchers then analyzed the data using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.
This statistical approach was used to examine both direct and indirect relationships between business strategy, organizational agility, digital transformation, and firm performance.
All Five Hypotheses Were Supported
The statistical analysis showed that all five hypotheses proposed by the researchers were supported.
The main findings were:
Business strategy → organizational agility: coefficient of 0.680, with p-value <0.001.
Organizational agility → firm performance: coefficient of 0.521, with p-value <0.001.
Business strategy → firm performance: coefficient of 0.284, with p-value 0.001.
Business strategy → organizational agility → firm performance: indirect effect of 0.354, with p-value <0.001.
Digital transformation strengthens organizational agility → firm performance: moderation coefficient of 0.167, with p-value 0.026.
These results indicate that business strategy has a strong relationship with an organization's ability to adapt. Organizational agility then contributes to improved firm performance.
The study also demonstrates that business strategy influences performance not only directly but also indirectly through organizational agility.
Organizational Agility Connects Strategy with Performance
One of the most important findings is the role of organizational agility as a mediator between business strategy and firm performance.
In simple terms, business strategy determines where an organization wants to go, while organizational agility determines how quickly the organization can execute that strategy when circumstances change.
A company may have a strong strategic plan but still lose market opportunities if decision-making and operational processes are too slow. Conversely, organizations that can quickly adjust resources, processes, and decisions are better positioned to turn strategic plans into measurable results.
The findings therefore highlight adaptability as an important component of competitiveness in the digital economy.
Daduk Merdika Mansur of Telkom University, together with Anna Triwijayati of Universitas Ma Chung and Andiko Tongga of Universitas Esa Unggul, emphasizes through the study that digital transformation should not be viewed simply as the adoption of new technology.
Technology can deliver greater value when it is supported by clear strategic direction and organizational capabilities that enable continuous adaptation.
Digital Transformation Strengthens the Impact of Agility
The research also examined digital transformation as a moderating factor. The results show that digital transformation strengthens the relationship between organizational agility and firm performance.
Organizations with stronger digital capabilities can make better use of organizational agility. Digital infrastructure, rapid access to information, data-driven decision-making, and digital collaboration systems can help companies respond more effectively to changes in their business environment.
The finding reinforces the idea that technology and organizational capabilities need to develop together. Digital transformation without organizational readiness may not produce optimal improvements in performance.
Implications for Businesses
For company managers, the research provides a clear message: digital investment should be accompanied by changes in organizational capabilities and business processes.
Companies can focus on three major areas. First, they need to develop business strategies that emphasize flexibility and innovation. Second, they should strengthen employee capabilities so workers can adapt to technological changes and evolving market demands. Third, organizations need faster decision-making processes to respond promptly to opportunities and threats.
For organizations in Malang Raya and other developing business ecosystems, integrating business strategy, organizational agility, and digital transformation can provide a foundation for sustainable competitiveness.
In other words, successful digital transformation is not determined only by how much technology a company uses. It also depends on how effectively technology is aligned with business strategy and organizational capabilities.
Author Profiles
Daduk Merdika Mansur is affiliated with Telkom University, Indonesia, and serves as the corresponding author of the article. The publication lists dadukmansur@telkomuniversity.ac.id as the correspondence email.
Anna Triwijayati is affiliated with Universitas Ma Chung, Malang, Indonesia.
Andiko Tongga is affiliated with the Master of Hospital Administration, Universitas Esa Unggul, Indonesia.
The available publication information does not specify academic degrees or detailed areas of expertise for each author.
Research Source
Article Title: Business Strategy and Firm Performance Through Organizational Agility Under Digital Transformation
Authors: Daduk Merdika Mansur, Anna Triwijayati, Andiko Tongga
Publication Year: 2026
Journal: International Journal of Management, Business, and Innovation (IJMBI)
DOI: https://doi.org/10.59890/ijmbi.v4i4.51
E-ISSN: 3025-5589
Journal Website: https://journalijmbi.my.id/index.php/ijmbi
Overall, the study shows that companies seeking greater benefits from digital transformation need a combination of effective business strategy, organizational agility, and digital readiness. Together, these capabilities can help organizations adapt, innovate, and improve performance as the business environment continues to change.
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