Achieving organizational agility in situation of uncertainty through market sensing capability and innovation

Abstract

The uncertainty of the business environment caused by the Industrial Revolution 4.0 and the emergence of the COVID-19 Pandemic has become a challenge for travel businesses. The rapid changes in technology and changes in tourist behavior have changed the competition in the tourism industry. Creating an agile organization is an essential factor in adapting to the rapidly changing business environment. Agile organizations can be pursued by utilizing the capabilities and innovations possessed by the organization. This research wanted to study the relationship between market sensing ability, innovation, and organizational agility. Data were obtained from 175 directors or managers of tour operators. Structural Equation Modeling (SEM) with WarpPLS 6.0 was used as a tool for data analysis. The results show that market sensing capability has a positive and significant effect on innovation and organizational agility. Empirical evidence also finds that innovation has a positive and significant impact on organizational agility. In the future, the director or manager of a tour operator urgently needs to consider market sensing ability and innovation as a key to achieving organizational innovation and agility. The originality of this research lies in the industrial setting and the nexus between market sensing ability and organizational agility, which is still not widely studied.