Proceedings of the 1st Sampoerna University-AFBE International Conference, SU-AFBE 2018, 6-7 December 2018, Jakarta Indonesia

Research Article

Strategic Agility in Environmental Turbulence A case of Banking Sector in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.6-12-2018.2286279,
        author={Winda  Anggraini and Lily  Sudhartio},
        title={Strategic Agility in Environmental Turbulence A case of Banking Sector in Indonesia},
        proceedings={Proceedings of the 1st Sampoerna University-AFBE International Conference, SU-AFBE 2018, 6-7 December 2018, Jakarta Indonesia},
        publisher={EAI},
        proceedings_a={SU-AFBE},
        year={2019},
        month={8},
        keywords={strategic agility environmental turbulence competitive advantage performance},
        doi={10.4108/eai.6-12-2018.2286279}
    }
    
  • Winda Anggraini
    Lily Sudhartio
    Year: 2019
    Strategic Agility in Environmental Turbulence A case of Banking Sector in Indonesia
    SU-AFBE
    EAI
    DOI: 10.4108/eai.6-12-2018.2286279
Winda Anggraini1,*, Lily Sudhartio1
  • 1: Faculty of Economic and Business, University of Indonesia
*Contact email: windaanggraini.hrp@gmail.com

Abstract

Adapting to environmental turbulence is mandatory for every player in the banking sector. They need to develop rational strategies and respond effectively. Environmental Turbulence especially market turbulence and technological turbulence, which happen lately in banking industry, require firms to review their strategies continuously. Strategic agility with its dimensions: strategic sensitivity, resource fluidity, and collective commitment, is a capability of a firm that has been identified as a key to succeed in a highly competitive and rapidly changing environment. Strategic agility is also known as a source of competitive advantage which will also enhance performance of the firm. This study tries to examine strategic agility and its dimension and reveal its importance in the banking sector in order to gain competitive advantage in environmental turbulence. Furthermore, this study explores the application of strategic agility and its potential to improve unit performance through competitive advantage. The population of this study is managers in one of private bank in Indonesia. This study uses Structural Equation Modelling (PLS-SEM) to analyze the data. Findings of this study suggest that strategic agility has a role to gain competitive advantage by taking advantages from environmental turbulence specifically in market and technological turbulence which in turn will also improve firm performance.