Causal Structural Relationship Model of Organizational Agility, Organizational Innovation, and Organizational Effectiveness on Competitive Advantage: Empirical Evidence from Wooden Furniture Manufacturing Businesses in Thailand
Article Sidebar
Main Article Content
Abstract
This article aimed to 1) develop a causal relationship model between organizational agility, organizational innovation, organizational effectiveness, and competitive advantage and 2) examine the relationship between organizational agility, organizational innovation, organizational effectiveness, and competitive advantage. This quantitative research used a mailed questionnaire as a data collection tool, with a sample of 396 wooden furniture manufacturing businesses in Thailand selected through simple random sampling. Statistical analysis included Pearson correlation, factor analysis, and structural equation modeling. The results indicated that 1) organizational agility positively influenced organizational innovation, organizational effectiveness, and competitive advantage, and both organizational innovation and effectiveness positively impacted competitive advantage, with statistical significance, and 2) the development of the causal relationship models was consistent with the empirical data (2/df = 1.268, df = 69, p-value = 0.066, GFI = 0.974, AGFI = 0.948, NFI = 0.979, CFI = 0.995, RMSEA = 0.026). The result of this study will be the guidelines for driving managerial policy as well as practical skill development in terms of organizational agility, organizational innovation, organizational effectiveness, and competitive advantage in the wooden furniture manufacturing businesses in Thailand. This strategic information can also be used for business management and risk management.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Views and opinions appearing in the Journal it is the responsibility of the author of the article, and does not constitute the view and responsibility of the editorial team.
References
Aaker, D. A., Kumar, V., & Day, S. (2001). Marketing research. (7th ed.). New Jersey: Wiley.
Abdel-Qader, M. A. (2021). The effectiveness of organizational agility on the organizational performance excellence of Jordanian National Industrial Companies. Natural Volatiles & Essential Oils, 8(4), 10669-10675. Retrieved from https://www.nveo.org/index.php/journal/article/view/2191/1938
Adeborode, K. O., Dora, M., Umeh, C., Hina, S. M., & Eldabi, T. (2025). Leveraging organizational agility in B2B ecosystems to mitigate food waste and loss: A stakeholder perspective. Industrial Marketing Management, 125, 254-271. https://doi.org/10.1016/j.indmarman.2025.01.007
Al-Khatib, A. W., & Al-ghanem, E. M. (2022). Radical innovation, incremental innovation, and competitive advantage, the moderating role of technological intensity: evidence from the manufacturing sector in Jordan. European Business Review, 34(3), 344-369. https://doi.org/10.1108/EBR-02-2021-0041
Almahirah, M. S. Z. (2020). The effectiveness of organizational agility as a strategic input in the process of enhancing organizational competitiveness. International Journal of Advanced Science and Technology, 29(8s). 1628-1637. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/12577
Al-Omoush, K. S., Simón-Moya, V., & Sendra-García, J. (2020). The impact of social capital and collaborative knowledge creation on e-business proactiveness and organizational agility in responding to the COVID-19 crisis. Journal of Innovation & Knowledge, 5(4), 279-288. https://doi.org/10.1016/j.jik.2020.10.002
Armstrong, J.S., & Overton, T.S. (1977). Estimating nonresponse bias in mail surveys. Journal of marketing research, 14(3), 396-402. https://doi.org/10.2307/3150783
Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635. https://doi.org/10.1016/j.techsoc.2021.101635
Banmairuroy, W., Kritjaroen, T., & Homsombat, W. (2022). The effect of knowledge-oriented leadership and human resource development on sustainable competitive advantage through organizational innovation's component factors: evidence from Thailand’s new S-curve industries. Asia Pacific Management Review, 27(3), 200-209. https://doi.org/10.1016/j.apmrv.2021.09.001
Bekos, G. S., Jaakkola, M., & Chari, S. (2025). Organizational agility and firm performance: The role of architectural marketing capabilities. Industrial Marketing Management, 125, 239-253. https://doi.org/10.1016/j.indmarman.2025.01.005
Budiman, M. A., Soetjipto, B. W., Kusumastuti, R. D., & Wijanto, S. (2023). Organizational agility, dynamic managerial capability, stakeholder management, discretion, and project success: Evidence from the upstream oil and gas sectors. Heliyon, 9(9), 1-11. https://doi.org/10.1016/j.heliyon.2023.e19198
Byme, M. (1998). Structural equation with LISREL, PRELIS, and SIMPLIS: basic concepts, application, and programming. New Jersey: Lawrence Erlbaum Associates.
Cadden, T., Weerawardena, J., Cao, G., Duan, Y., & McIvor, R. (2023). Examining the role of big data and marketing analytics in SMEs innovation and competitive advantage: a knowledge integration perspective. Journal of Business Research, 168, 114225. https://doi.org/10.1016/j.jbusres.2023.114225
Chwiłkowska-Kubala, A., Cyfert, S., Malewska, K., Mierzejewska, K., Szumowski, W., & Prause, G. (2023). What drives organizational agility in energy sector companies? The role of strategic CSR initiatives and the dimensions of proactive CSR. Sustainable Futures, 6, 100133. https://doi.org/10.1016/j.sftr.2023.100133
Clauss, T., Kraus, S., Kallinger, F. L., Bican, P. M., Brem, A., & Kailer, N. (2021). Organizational ambidexterity and competitive advantage: The role of strategic agility in the exploration-exploitation paradox. Journal of Innovation & Knowledge, 6(4), 203-213. https://doi.org/10.1016/j.jik.2020.07.003
Gong, C., & Ribiere, V. (2023). Understanding the role of organizational agility in the context of digital transformation: an integrative literature review. VINE Journal of Information and Knowledge Management Systems, 55(2), 351-378. https://doi.org/10.1108/VJIKMS-09-2022-0312
Guo, R., Yin, H., & Liu, X. (2023). Coopetition, organizational agility, and innovation performance in digital new ventures. Industrial Marketing Management, 111, 143-157. https://doi.org/10.1016/j.indmarman.2023.04.003
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis. (7th ed.). New Jersey: Pearson Education.
Jha, N., Potnuru, R. K. G., Sareen, P., & Shaju, S. (2019). Employee voice, engagement and organizational effectiveness: A mediated model. European Journal of Training and Development, 43(7/8), 699-718. https://doi.org/10.1108/EJTD-10-2018-0097
Khalil, M. L., Abd Aziz, N., Long, F., & Zhang, H. (2023). What factors affect firm performance in the hotel industry post-Covid-19 pandemic? Examining the impacts of big data analytics capability, organizational agility and innovation. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), 100081. https://doi.org/10.1016/j.joitmc.2023.100081
Khalil, S., & Winkler, T. J. (2023). How software as a service simultaneously affords organizational agility and inertia. The Journal of Strategic Information Systems, 32(4), 101804. https://doi.org/10.1016/j.jsis.2023.101804
Melián-Alzola, L., Domínguez-Falcón, C., & Martín-Santana, J. D. (2020). The role of the human dimension in organizational agility: An empirical study in intensive care units. Personnel Review, 49(9), 1945-1964. https://doi.org/10.1108/PR-08-2019-0456
Mohammad Shafiee, M. (2022). Competitive advantage via intellectual capital: a moderated mediation analysis. Journal of Intellectual Capital, 23(5), 957-997. https://doi.org/10.1108/JIC-05-2020-0152
Nunnally. J, & Bernstein, I. (1994). Psychometric theory. (3rd ed.). New York: McGraw-Hill.
OECD. (2005). Oslo Manual: Guidelines for collecting and interpreting innovation data. Paris: OECD Publishing.
Panda, S. (2025). Effects of information technology and knowledge management capabilities on organizational innovation: the mediating role of organizational agility. VINE Journal of Information and Knowledge Management Systems, 1-26. https://doi.org/10.1108/VJIKMS-11-2023-0306
Porter, M. E. (1985), Technology and competitive advantage. Journal of Business Strategy, 5(3), 60-78. https://doi.org/10.1108/eb039075
Salkind, N. J. (2019). Exploring research. (9th ed.). London: Pearson.
Shajrawi, A., & Aburub, F. (2023). Impact of ERP usage on service differentiation: role of mediating effect of organizational agility. Arab
Gulf Journal of Scientific Research, 41(3), 359-375. https://doi.org/10.1108/AGJSR-06-2022-0085
Sharma, S., & Sharma, S. K. (2020). Probing the links between team resilience, competitive advantage, and organizational effectiveness: Evidence from information technology industry. Business Perspectives and Research, 8(2), 289-307. https://doi.org/10.1177/2278533719887458
Susanty, A., Sumiyati, L. S., Syaiful, S., & Nihlah, Z. (2021). The impact of lean manufacturing practices on operational and business performances at SMES in the wooden furniture industry. International Journal of Lean Six Sigma, 13(1), 203-231. https://doi.org/10.1108/IJLSS-08-2020-0124
Teece, D.J., Pisano, G., & Shuen, A., (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1142/9789812796929_0004
Topcu, Y. E. (2023). The comparative advantages in the wooden furniture industry: does the export price matter?. Competitiveness Review: An International Business Journal, 33(6), 1145-1160. https://doi.org/10.1108/CR-03-2022-0045
Wadongo, B., & Abdel-Kader, M. (2014). Contingency theory, performance management and organisational effectiveness in the third sector: A theoretical framework. International Journal of Productivity and Performance Management, 63(6), 680-703. https://doi.org/10.1108/IJPPM-09-2013-0161
Yadav, A., Pandita, D., & Singh, S. (2022). Work-life integration, job contentment, employee engagement and its impact on organizational effectiveness: a systematic literature review. Industrial and Commercial Training, 54(3), 509-527. https://doi.org/10.1108/ICT-12-2021-0083
Yağmur, Ö. B., & Myrvang, N. A. (2023). The effect of organizational agility on crisis management process and organizational resilience: Health sector example. International Journal of Disaster Risk Reduction, 96, 103955. https://doi.org/10.1016/j.ijdrr.2023.103955
YahiaMarzouk, Y., & Jin, J. (2022). Linking environmental scanning and organizational innovation with competitive advantage: evidence from Egyptian SMEs. Management & Sustainability: An Arab Review, 1(2), 170-195. https://doi.org/10.1108/MSAR-02-2022-0010
Zhang, J., Jehangir, F. N., Yang, L., Tahir, M. A., & Tabasum, S. (2024). Competitive advantage and firm performance: The role of organizational culture, organizational innovation, and knowledge sharing. Journal of the Knowledge Economy, 1-27. https://doi.org/10.1007/s13132-024-01910-3
