Adapting to Environmental Change: The Importance of Organizational Agility in the Business Landscape

Abstract

Business organizations operate in an uncertain environment that is constantly changing. With this rapid change, there are certain business risks for companies, such as missing opportunities and making the wrong decisions. This risk factor can cause companies to downsize or become unable to operate. On the other hand, uncertain environmental conditions can create their own conditions and provide a great opportunity. Organizational agility is an important factor that can enable companies to succeed in an uncertain and ever-changing environment. Organizational agility enables organizations to both gain competitive advantage and sustain their existence. Organizational agility helps organizations to be more flexible and adapt to environmental changes. This paper focuses on the importance of organizational agility under environmental uncertainty. It discusses the relationship between organizational agility and the concept of environmental turbulence, which has recently become a better description of environmental uncertainty. In this context, a comprehensive literature review was conducted and the relationship between the concepts of organizational agility, environmental adaptation, environmental change and environmental turbulence was examined. This paper contributes to future research by consolidating the literature on environmental turbulence and organizational agility.