The Role of Strategic Agility in Enhancing Financial Performance: Evidence from Small and Medium Enterprises
Keywords:
Strategic Agility; Finansial Performance; SMEAbstract
This study aims to analyze the role of strategic agility in enhancing the financial performance of Small, and Medium Enterprises (SMEs). In a business environment characterized by volatility, uncertainty, complexity, and ambiguity (VUCA), strategic agility is a crucial capability that enables MSMEs to adapt, innovate, and optimize resources efficiently. This research employs a qualitative descriptive approach using document analysis techniques to explore the relationship between strategic agility, innovation, and digital transformation in improving financial performance. The findings indicate that strategic agility positively influences MSMEs’ profitability, operational efficiency, and competitiveness. Furthermore, the integration of strategic agility, entrepreneurial innovation, and organizational learning strengthens key financial indicators such as Return on Assets (ROA) and Return on Equity (ROE). These results highlight that developing strategic agility should be a strategic priority for both MSMEs and policymakers to ensure business sustainability, revenue growth, and long-term financial stability.
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