Why the Agile Mindset Matters

Abstract

Volatility, uncertainty, complexity, and ambiguity (VUCA) are drivers in today's business world. To perform amid this accelerated change and the digitalization progress, organizations are implementing agility. However, such an implementation does not happen without stumbling blocks and some fail. One reason for this is actors’ agile mindset (AM), which is necessary to deal succefully within a VUCA environment. Knowledge of the AM is in its infancy and conceptualization and measuring tools for it are lacking. Furthermore, the relation of the AM in terms of strategic agility and performance is still unclear. Our study aims to close these gaps. We examine AM through 15 interviews and a survey (N = 449) to predict strategic agility and performance. As a result, we conceptualize AM as an attitude that comprises four dimensions: attitude towards 1) learning spirit, 2) collaborative exchange, 3) empowered self-guidance, and 4) customer co-creation. Furthermore, we describe how actors with an AM deal with new technologies. We found that AM affects organizational performance mediated by strategic agility. These findings contribute to the agility and management research by providing a conceptualization and measuring instrument for AM. Furthermore, its relevance for strategic agility is explained and its relationship with organizational performance outlined.

Keywords: Agile mindset, organizational performance, strategic agility, digitalization