Strategic Agility: Linking People and Organisational Performance of Private Higher Learning Institutions in Malaysia

Authors

  • Josephine Ie Lyn Chan Graduate School of Business, Universiti Sains Malaysia, Malaysia
  • Rajendran Muthuveloo Graduate School of Business, Universiti Sains Malaysia, Malaysia

DOI:

https://doi.org/10.33736/ijbs.4616.2022

Keywords:

People, organisational performance, strategic agility, mediating effect, private higher education

Abstract

Strategic agility arises from the capabilities of people. Ultimately, in today’s turbulent business landscape, organisations need strategic agility to acquire the dynamism to achieve their goals. The main purpose of the study is to examine the relationship between people, strategic agility, and organisational performance. The partial least squares equation modelling technique (PLS-SEM) was utilised on a dataset of 155 private higher learning institutions in Malaysia. The results did not support the direct relationship between people and organisational performance. Instead, it confirmed the mediating effect of strategic agility in the relationship. This finding provided significant contribution as strategic agility, created by people, was empirically proven as a crucial link that needs to be prioritised by private higher learning institutions in Malaysia. With strategic agility, private higher learning institutions will be able to optimise their performance in order to attain business sustainability in the current dynamic market.

References

Ahmad, A. R., & Ng, K. S. (2015, August 25-27). Balanced Scorecard in Higher Education Institutions: What Should Be Consider? (pp. 64-68). Proceedings from International Symposium on Technology Management and Emerging Technologies (ISTMET). Langkawi, Kedah: Malaysia. https://doi.org/10.1109/ISTMET.2015.7359002

Appelbaum, E., Bailey, T., Berg, P., & Kallenberg, A. L. (2000). Manufacturing advantage: Why high-performance work systems pay off. Cornell University Press.

Ashford, S. J., Wellman, N., de Luque, M. S., de Stobbeleir, K. E. M., & Wollan, M. (2017). Two roads to effectiveness: CEO feedback seeking, vision articulation, and firm performance. Journal of Organisational Behaviour, 39(1), 1-14. https://doi.org/10.1002/job.2211

Astakhova, M. N., & Porter, G. (2015). Understanding the work passion - performance relationship: The mediating role of organisational identification and moderating role of fit at work. Human Relations, 68(8), 1315-1346. https://doi.org/10.1177/0018726714555204

Barney, J. B., & Arikan, A. M. (2001). The resource-based view: Origins and implications. In M.A. Hitt., R. E. Freeman, & J. S. Harrison (Eds.), Handbook of Strategic Management (pp. 124-188). Blackwell.

Boehm, S. A., Dwertmann, D. J., Bruch, H., & Shahmir, B. (2015). The missing link? Investigating organisational identity strength and transformational leadership climate as mechanisms that connect CEO charisma with firm performance. The Leadership Quarterly 26, 156-171. https://doi.org/10.1016/j.leaqua.2014.07.012

Branham, L. (2001). Keeping the people who keep you in business: 24 ways to hang on to your most valuable talent. American Management Association.

Chan, J. I. L., & Muthuveloo, R. (2018). Key success factors for organisational performance of private HLIs in Malaysia. Strategic Direction, 34(8), 7-9. https://doi.org/10.1108/SD-03-2018-0041

Chen, S. H., Wang, H. H., & Yang, K. J. (2009). Establishment and application of performance measure indicators for universities. The TQM Magazine, 21(3), 220-235. https://doi.org/10.1108/17542730910953004

Chow, I. H. S., Teo, S. T. T., & Chew, I. K. H. (2013). Human Resource Management systems and firm performance: The mediation role of strategic orientation. Asia Pacific Journal of Management, 30, 53-72. https://doi.org/10.1007/s10490-012-9288-6

Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/correlation analysis for the behavioural sciences (3rd ed.). Lawrence Erlbaum Associates Publishers.

Cruke, S., & Decramer, A. (2016). The development of a measurement instrument for the organisational performance of social enterprises. Sustainability, 8(2), 1-30. https://doi.org/10.3390/su8020161

Eisenhardt, K., & Martin, J. (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

Engelen, A., Gupta, V., Strenger, L., & Brettel, M. (2015). Entrepreneurial orientation, firm performance, and the moderating role of transformational leadership behaviors. Journal of Management, 41(4), 1069-1097. https://doi.org/10.1177/0149206312455244

Filley, A. C., & Aldag, R. (1978). Characteristics and measurement of an organisational typology. The Academy of Management Journal, 21(4), 578-591. https://doi.org/10.2307/255701

Gardner, T., Wright, P., & Moynihan, L. M. (2011). The impact of motivation, empowerment, and skill-enhancing practices on aggregate voluntary turnover: The mediating effect of collective affective commitment. Personnel Psychology, 64(2), 315-350. https://doi.org/10.1111/j.1744-6570.2011.01212.x

Ghasemy, M., Hussin, S., Megat Daud, M. A. K., Md Nor, M., Ghavifekr, S., & Kenayathulla, H. B. (2018). Issues in Malaysian higher education: A quantitative representation of the top five priorities, values, challenges, and solutions from the viewpoints of academic leaders. SAGE Open, 8(1), 1 - 15. https://doi.org/10.1177/2158244018755839

Green, S. (1991). How Many Subjects Does It Take To Do A Regression Analysis?. Multivariate Behavioral Research, 26 (2), 499-510. https://doi.org/10.1207/s15327906mbr2603_7

Guay, R. P., Choi, D. J., Oh, I. S., Mitchell, M. S., Mount, M. K., & Shin, K. H. (2016). Why people harm the organisation and its members: Relationships among personality, organisational commitment, and workplace deviance. Human Performance, 29(1), 1-15. https://doi.org/10.1080/08959285.2015.1120305

Ha, S. H., & Lo, M. C. (2018). An empirical examination of knowledge management and organisational performance among Malaysian manufacturing SMEs. International Journal of Business Innovation and Research, 17(1), 23-31. https://doi.org/10.1504/IJBIR.2018.094196

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modelling (PLS-SEM) (2nd ed.). SAGE Publications. https://doi.org/10.15358/9783800653614

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modelling. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8

Hyland, P. K., Lee, R. A., & Mills, M. J. (2015). Mindfulness at work: A new approach to improving individual and organisational performance. Industrial and Organisational Psychology, 8(4), 576-602. https://doi.org/10.1017/iop.2015.41

Jabatan Pendidikan Tinggi (2018). Senarai daftar IPTS 31 Disember 2018. Arkib JPT. Retrieved from https://drive.google.com/drive/folders/16HLYe3_FamSpdHTsFZP81Sg6Ejza3mp1

Junni, P., Sarala, R., Tarba, S., & Weber, Y. (2015). The role of strategic agility in acquisitions. British Journal of Management, 26(4), 596-616. https://doi.org/10.1111/1467-8551.12115

Khavari, S. A., Arasteh, H., & Jafari, P. (2016). Assessing the level of organisational universities agility: Case study of Islamic Azad University in Mazandaran. Mediterranean Journal of Social Sciences, 7(3), 112-117. https://doi.org/10.5901/mjss.2016.v7n3s2p112

Kroon, B., Voorde, K. V. D., & Timmers, J. (2013). High performance work practices in small firms: A resource-poverty and strategic decision-making perspective. Small Business Economies, 41(1), 71-91. https://doi.org/10.1007/s11187-012-9425-0

Lewin, K. M. (2015). Educational access, equity, and development: Planning to make rights realities. UNESCO: International Institute for Educational Planning.

Lim, P., & Williams, G. (2015). Private higher education in Malaysia - Avoiding a hidden crisis? [PowerPoint slides]. Penang Institute. https://penanginstitute.org/programmes/penang-institute-in-kuala-lumpur/private-higher-education-in-malaysia-avoiding-a-hidden-crisis/

Marin-Garcia, J. A., & Tomas, J. M. (2016). Deconstructing AMO framework: A systematic review. Intangible Capital, 12(4), 1040-1087. https://doi.org/10.3926/ic.838

Menon, S., & Suresh, M. (2020). Factors influencing organisational agility in higher education. Benchmarking: An International Journal, ahead-of-print. https://doi.org/10.1108/BIJ-04-2020-0151

Mir, A. A., & Mufeed, U. (2016). Employee retention - A key tool for achieving competitive advantage. International Journal of Engineering and Management Research, 6(6), 334-337.

Mukerjee, S. (2014). Agility: A crucial capability for universities in times of disruptive change and innovation. Australian Universities' Review, 56(1), 56-60. https://www.learntechlib.org/p/154480/

Murray, R., Barrick, G. R., Thurgood, T. A., & Smith, S. H. (2015). Collective organisational engagement: Linking motivational antecedents, strategic implementation, and firm performance. Academy of Management Journal, 58(1), 111-135. https://doi.org/10.5465/amj.2013.0227

Muthuveloo, R. (2015). SWIM: Crafting winning corporate strategy for business sustainability. Pearson Malaysia Sdn Bhd.

Muthuveloo, R., Shanmugam, N., & Teoh, A. P. (2017). The impact of tacit knowledge management on organisational performance: Evidence from Malaysia. Asia Pacific Management Review, 22(4), 192-201. https://doi.org/10.1016/j.apmrv.2017.07.010

Muthuveloo, R., & Teoh, A. P. (2017, October 12). Managing Employees' Irrational Behaviour Through Employees' Classifications. Paper presented at Conference on Management and Behavioural Studies. Universitas Tarumanagara, Jakarta.

Navarro, J. G. C., Soto, P. S., & Wesley, A. K. P. (2016). Structured knowledge processes and firm performance: The role of organisational agility. Journal of Business Research, 69(5), 1544-1549. https://doi.org/10.1016/j.jbusres.2015.10.014

Ngoc-Tan, N., & Gregar, A. (2019). Knowledge management and its impacts on organisational performance: An empirical research in public higher education institutions of Vietnam. Journal of Information and Knowledge Management, 18(02), 1-29. https://doi.org/10.1142/S0219649219500151

O'Shea, R. P., Allen, T. J., Chevalier, A., & Roche, F. (2005). Entrepreneurial orientation, technology transfer and spinoff performance of U.S. universities. Research Policy, 34(7), 994-1009. http://www.sciencedirect.com/science/article/pii/S00487333(05)00 116-2 https://doi.org/10.1016/j.respol.2005.05.011

Oyedijo, A. (2012). Strategic agility and competitive performance in the Nigerian telecommunication industry. Business and Management Review, 1, 39-50.

Podsakoff, P. M., Mackenzie, S. B., Lee, Y. L., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903. https://doi.org/10.1037/0021-9010.88.5.879

Pucciarelli, F., & Kaplan, A. (2016). Competition and strategy in higher education: Managing complexity and uncertainty. Business Horizon, 59(3), 311-320. https://doi.org/10.1016/j.bushor.2016.01.003

Ringle, C. M., Wende, S., & Becker, J. M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH. https://www.smartpls.com/

Souitaris, V., & Maestro, B. M. M. (2010). Polychronicity in top management teams: The impact on strategic decision processes and performance of new technology ventures. Strategic Management Journal, 31(6), 652-678. https://doi.org/10.1002/smj.831

Trinh, P. T. (2015). Building enterprise systems infrastructure - Flexibility as enabler of organisational agility: Empirical evidence. European Conference on Information Systems (ECIS) 2015 Completed Research Papers, 185, 1-17. https://doi.org/10.18151/7217506

Valmohammadi, C., & Roshanzamir, S. (2015). The guidelines of improvement: Relations among organisational culture, TQM and performance. International Journal of Production Economics, 164(C), 167-178. https://doi.org/10.1016/j.ijpe.2014.12.028

Verma, V., Bharadwaj, S. S., & Nanda, M. (2017). Comparing agility and absorptive capacity for superior firm performance in dynamic environment. International Journal of Business Environment, 9(1), 1-17. https://doi.org/10.1504/IJBE.2017.10005662

Walter, A. T. (2020). Organisational agility: ill-defined and somewhat confusing? A systematic literature review and conceptualization. Management Review Quarterly, 1-49. https://doi.org/10.1007/s11301-020-00186-6

Wu, S. P. J., Straub, D. W., & Liang, T. P. (2015). How IT governance mechanisms and strategic alignment influence organisational performance: Insights from a matched survey of business and IT managers. MIS Quarterly, 39(2), 497-518. https://doi.org/10.25300/MISQ/2015/39.2.10

Yusoff, Y., Alias, Z., Abdullah, M., & Mansor, Z. (2019). Agile marketing conceptual framework for private higher education institutions. International Journal of Academic Research Business and Social Sciences, 9(1), 1418-1426. https://doi.org/10.6007/IJARBSS/v9-i1/5896

Downloads

Published

2022-03-31

How to Cite

Josephine Ie Lyn Chan, & Rajendran Muthuveloo. (2022). Strategic Agility: Linking People and Organisational Performance of Private Higher Learning Institutions in Malaysia. International Journal of Business and Society, 23(1), 342–358. https://doi.org/10.33736/ijbs.4616.2022