Continuous Organizational Agility in Banking: Unveiling New Pathways to Competitive Advantage

Inta Hartaningtyas Rani (), Rhenald Kasali (), Ratih Dyah Kusumastuti () and Sri Rahayu Hijrah Hati ()
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Inta Hartaningtyas Rani: University of Indonesia
Rhenald Kasali: University of Indonesia
Ratih Dyah Kusumastuti: University of Indonesia
Sri Rahayu Hijrah Hati: University of Indonesia

Global Journal of Flexible Systems Management, 2025, vol. 26, issue 3, No 2, 469-490

Abstract: Abstract Banks face accelerating regulatory pressure to adapt and gain competitive advantages in a digitally evolving financial landscape. This study examines the micro-foundations and key drivers of continuous organizational agility as a survival capability for succeeding in competition. Partial least squares structural equation modeling of survey data from Indonesian bank executives confirmed the mechanisms by which routine dynamics and dynamic capabilities form a new multidimensional construct of continuous organizational agility. This approach also highlights the interplay between entrepreneurial leadership, digital organizational culture, and digital platform capability. Interestingly, the findings indicate that continuous organizational agility and digital platform capabilities directly impact competitive advantage, while other factors exert indirect influences. This reveals the critical balance banks must maintain between rapid adaptability and operational stability, emphasizing digital orientation as key to sustaining competitive advantage. These results offer actionable pathways to align stakeholder interests, including regulatory demands, with agility-driven competitive strategies.

Keywords: Agile system; Competitive banking; Continuous agility; Digital landscape; Organizational flexibility; Routine dynamics (search for similar items in EconPapers)
JEL-codes: G21 L10 M10 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40171-025-00452-0

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