Boosting firm performance via enterprise agility and network structure

Abstract

"Purpose - Drawing on a network perspective on enterprise agility, the purpose of this paper is to explore whether firms with superior network structure not only may be better able to generate direct effect on firm performance, but whether a superior network structure may also help firms to create better firm agility and thus enhance their performance. Design/methodology/approach - The study employed a survey method and data were collected from 250 companies in Taiwan's glass industry. Using structural equation modeling (SEM) technology, it specified the measurement properties of survey instrument such as reliabilities and validities and then identified causal relation among latent constructs to examine causal effects of hypotheses testing. Findings - The results show that a firm's agility capability and its network structure are a,critical competitive strategy source of firm performance. Moreover, network structure also partially mediates the impact of enterprise agility on firm performance. Research limitations/implications - Because the data were collected from a single industry and firm performance is evaluated by subjective managerial assessments, further research may be necessary by using the data involving multiple industries with objective performance indices for more meaningful and generalized results. Practical implications - The findings confirm the importance of enterprise agility for contemporary firms in today's dynamic business environment. By reinforcing enterprise agility, firms could react better to unpredictable changes. In addition, firms also are suggested to put more effort into developing and maintaining their network structures, both as repositories of external resources and as boosters of enterprise agility. Originality/value - The paper provides evidence regarding the impact of enterprise agility and network structure on firm performance."