Agile Mindset as a Microfoundation of Dynamic Capabilities and Organizational Agility in SMEs: A Decade of Evidence
DOI:
https://doi.org/10.17509/image.2025.191Keywords:
Dynamic Capabilities, Organizational Agility, Agile Mindset, Firm Performance, SMEsAbstract
This study synthesizes a decade of empirical evidence on how Dynamic Capabilities (DC), Organizational Agility (OA), Agile Mindset (AM), and Firm Performance (FP) interact in small and medium enterprises (SMEs). Although dynamic capabilities and organizational agility are widely studied, existing research largely overlooks the cognitive and behavioral conditions that enable these capabilities to function effectively. Using a systematic literature review of 61 peer-reviewed articles (2014–2025) following PRISMA 2020 protocol, with thematic synthesis and VOSviewer bibliometric mapping, this study finds that organizational agility mediates the DC–FP relationship in 55.7% of reviewed studies, but only when an agile mindset is present. Among studies examining agile mindset, 73.7% confirmed its role as a behavioral moderator rather than a standalone variable. This review proposes that sustainable agility in SMEs demands both structural dynamic capabilities and the deliberate cultivation of agile mindset through leadership development and learning-oriented practices.
Downloads
References
Agile Alliance. (2001). Manifesto for agile software development. https://agilemanifesto.org/
Ahmad, Z., & Oon, E. Y. N. (2025). Agile mindset and digital innovation: Creative centrality, fintech usage, financial literacy, and the "not-invented-here" syndrome. Journal of Family Business Management. https://doi.org/10.1108/JFBM-04-2024-0072
Ahmed, F., Rehman, M. A., & Saeed, K. (2022). The role of dynamic capabilities and organizational agility in enhancing SME performance. Journal of Entrepreneurship in Emerging Economies, 14(4), 655–674. https://doi.org/10.1108/JEEE-02-2021-0043
AlKoliby, I. S., Taleb, T. S. T., & Al-Swidi, A. K. (2025). Being green requires agility: Does organizational agility mediate the relationship between green innovation and firm performance? TQM Journal, 35(4), 985–1002. https://doi.org/10.1108/TQM-01-2025-0002
Arik, M., Arslan, T., & Karapinar, S. (2021). Dynamic capabilities and organizational agility in small and medium enterprises: A strategic alignment perspective. Journal of Small Business Management, 59(5), 845–863. https://doi.org/10.1111/jsbm.12478
Asseraf, Y., & Gnizy, I. (2022). Translating strategy into action: The importance of an agile mindset and agile slack in international business. Journal of International Marketing, 31(2), 156–174. https://doi.org/10.1177/1069031X221138700
Badan Pusat Statistik. (2023). Statistik usaha mikro, kecil dan menengah 2023. BPS RI.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Chen, Y., Li, H., & Fan, X. (2022). Dynamic capabilities and digital transformation: A resource orchestration perspective. Information & Management, 59(8), 103678. https://doi.org/10.1016/j.im.2022.103678
Clauss, T., Breier, M., Kraus, S., Durst, S., & Mahto, R. V. (2023). Organizational ambidexterity and agility in SMEs: Balancing exploration and exploitation. Journal of Business Research, 161, 113922. https://doi.org/10.1016/j.jbusres.2023.113922
Crnogaj, K., Tominc, P., & Rozman, M. (2022). A conceptual model of developing an agile work environment. European Management Journal, 41(3), 375–389. https://doi.org/10.1016/j.emj.2022.01.007
Doz, Y. L., & Kosonen, M. (2010). Embedding strategic agility: A leadership agenda for accelerating business model renewal. Long Range Planning, 43(2–3), 370–382. https://doi.org/10.1016/j.lrp.2009.07.006
Dweck, C. S. (2006). Mindset: The new psychology of success. Random House.
Eilers, K., Peters, C., & Leimeister, J. M. (2022). Why the agile mindset matters. Technological Forecasting and Social Change, 183, 122340. https://doi.org/10.1016/j.techfore.2022.122340
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
Gunasekaran, A. (1999). Agile manufacturing: Enablers and an implementation framework. International Journal of Production Research, 37(5), 1223–1247. https://doi.org/10.1080/002075499191519
Hagen, B., Endres, H., & Nisar, A. (2024). The balancing act: Organizational agility in fast-growing international ventures. Industrial Marketing Management, 120, 129–142. https://doi.org/10.1016/j.indmarman.2024.02.007
Jantunen, A., Ellonen, H.-K., & Johansson, A. (2012). Beyond appearances – do dynamic capabilities of innovative firms actually differ? European Management Journal, 30(2), 141–155. https://doi.org/10.1016/j.emj.2011.11.001
Joiner, B. (2021). Leadership agility for organizational agility. Journal of Creating Value, 7(2), 139–149. https://doi.org/10.1177/2394964321103484
Kementerian Koperasi dan UKM. (2024). Perkembangan data usaha mikro, kecil, menengah dan usaha besar tahun 2024. Kemenkop UKM.
Kohtamäki, M., Kraus, S., Mäkelä, M., & Rabetino, R. (2020). Strategic agility in innovation: Unpacking the interaction of entrepreneurial orientation and absorptive capacity. Journal of Business Research, 118, 12–24. https://doi.org/10.1016/j.jbusres.2020.06.024
Mikalef, P., & Krogstie, J. (2020). Examining the interplay between digital transformation and dynamic capabilities. Information Systems Journal, 30(3), 607–635. https://doi.org/10.1111/isj.12285
Mikalef, P., Pappas, I. O., Krogstie, J., & Giannakos, M. (2018). Big data analytics capabilities: A systematic literature review and research agenda. Information Systems and e-Business Management, 16(3), 547–578. https://doi.org/10.1007/s10257-017-0362-y
Overby, E., Bharadwaj, A., & Sambamurthy, V. (2006). Enterprise agility and the enabling role of information technology. European Journal of Information Systems, 15(2), 120–131. https://doi.org/10.1057/palgrave.ejis.3000600
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., … Moher, D. (2021). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. BMJ, 372, n71. https://doi.org/10.1136/bmj.n71
Pavlou, P. A., & El Sawy, O. A. (2011). Understanding the elusive black box of dynamic capabilities. Decision Sciences, 42(1), 239–273. https://doi.org/10.1111/j.1540-5915.2010.00287.x
Pelletier, C., L'Écuyer, F., & Raymond, L. (2025). Building organizational agility through digital transformation: A configurational approach in SMEs. Industrial Management & Data Systems, 125(4), 1503–1520. https://doi.org/10.1108/IMDS-03-2024-0209
Pöhlmann, M., Heras-Pedrosa, C. D. L., Seitz, J., & Jambrino-Maldonado, C. (2025). Evaluating the potential of agile branding: Opportunities and challenges in the start-up context. Journal of Business Research, 170, 114011. https://doi.org/10.1016/j.jbusres.2023.114011
Rigby, D. K., Sutherland, J., & Takeuchi, H. (2016). Embracing agile. Harvard Business Review, 94(5), 40–50.
Sherehiy, B., Karwowski, W., & Layer, J. K. (2021). A review of enterprise agility: Concepts, frameworks, and applications. International Journal of Industrial Ergonomics, 83, 103147. https://doi.org/10.1016/j.ergon.2021.103147
Soluk, J., Miroshnychenko, I., Kammerlander, N., & De Massis, A. (2023). Small steps for the big hit: A dynamic capabilities perspective on SMEs’ adoption of digital technologies. Technological Forecasting and Social Change, 194, 122640. https://doi.org/10.1016/j.techfore.2023.122640
Soomro, M. A., & Khan, A. N. (2025). Leadership in times of crisis: Cultivating crisis management through digital transformation and organizational agility. Engineering, Construction and Architectural Management, 32(5), 890–905. https://doi.org/10.1108/ECAM-06-2023-0571
Tallon, P. P., & Pinsonneault, A. (2011). Competing perspectives on the link between strategic information technology alignment and organizational agility. MIS Quarterly, 35(2), 463–486. https://doi.org/10.2307/23044052
Tallon, P. P., Queiroz, M., Coltman, T., & Sharma, R. (2019). Information technology and the search for organizational agility. Journal of Strategic Information Systems, 28(2), 218–237. https://doi.org/10.1016/j.jsis.2018.12.002
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Teece, D. J. (2018). Dynamic capabilities and (digital) platform management: Identifying microfoundations for enterprise agility. California Management Review, 61(2), 5–31. https://doi.org/10.1177/0008125618819861
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207–222. https://doi.org/10.1111/1467-8551.00375
Walter, A.-T. (2021). Organizational agility: Ill-defined and somewhat confusing? A systematic literature review and conceptualization. Management Review Quarterly, 71(2), 343–391. https://doi.org/10.1007/s11301-020-00186-6
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 101848. https://doi.org/10.1016/j.lrp.2018.12.001
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207
Yamin, T., & Murwaningsari, E. (2023). Exploring the interplay between digital technology, transformational leadership and agility for enhancing organisational performance. Asia Pacific Management Review, 28(4), 432–448. https://doi.org/10.1016/j.apmrv.2022.12.002
Yi, H.-T., Oh, D., & Amenuvor, F. E. (2023). The effect of SMEs’ dynamic capability on operational capabilities and organisational agility. South African Journal of Business Management, 54(1). https://doi.org/10.4102/sajbm.v54i1.3589
Yusuf, Y. Y., Sarhadi, M., & Gunasekaran, A. (1999). Agile manufacturing: The drivers, concepts and attributes. International Journal of Production Economics, 62(1–2), 33–43. https://doi.org/10.1016/S0925-5273(98)00219-9
Zahoor, N., Arslan, A., & Haapanen, L. (2023). Dynamic capabilities and international performance of SMEs: The mediating role of strategic agility and networking capability. Journal of Business Research, 156, 113487. https://doi.org/10.1016/j.jbusres.2022.113487
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Herdiansyah Gustira Pramudia Suryono, Gatot Yudoko, Yuliani Dwi Lestari

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
