Organizations that carry out their activities within volatile and highly turbulent work environments need to maintain good performance and build a sustainable competitive advantage to face changes in those environments. The idea of strategic agility emerged as one of the ingredients that enable organizations to face changing working conditions by relying on enhancing sensing capabilities and resources reconfiguration [17,30,33]
. Studies have proven that agile organizations respond more quickly to exploit the opportunities of the work environment. That is, strategic agility enables organizations to improve their financial performance [5
increase their market share 
, and improve the effectiveness and efficiency of resources by restructuring them in harmony with ambient conditions [19,57]
. Therefore, the first research hypothesis was:
Hypothesis 1 (H1). Strategic agility has a positive influence on organizational performance.
Moreover, organizations’ activities directed to developing innovation capability can be supported by adopting working methods based on strategic agility. Farhana and Swietlicki (2020) emphasized that strategic agility by following up and evaluating changes in work environment conditions enables organizations to add value for customers through prospecting on the untapped market opportunities that contribute to satisfying the desires of customers [17,58]
. Kohtamäki et al. (2020) conceptualized strategic agility in innovation through three major practices related to the generation of proactive ideas, value-based product development, as well as product commercialization based on a market-oriented strategy 
. For Olaleye et al. (2021), innovation capability as evaluated by product and process innovation is positively related to strategic agility, where the latter significantly mediates the relationship between innovation capability and organizational resilience 
. Cai et al. (2019) argued that innovation capability requires a sufficient flexibility in an organization’s resources that can be allocated or reallocated to support initiatives directed to develop new offers 
. On the other hand, Brand et al. (2021) indicated that strategic agility supports organizations’ ability to create innovative business models through organizational restructuring, improving teamwork styles and reducing the impact of the organization’s internal policy problems and organizational conflicts 
. Hence, the second research hypothesis can be formulated as follows:
Hypothesis 2 (H2). Strategic agility has a positive influence on innovation capability.
Organizations have three organizational capabilities: adaption capability, absorption capability, and innovation capability 
. Maldonado-Guzmán et al. (2019) concluded that innovation capability represents the most important organizational capability because it enables an organization to respond effectively and efficiently to fluctuations in the work environment 
. The ability of organizations to develop new products and services and generate creative business models is one of the fundamental approaches for obtaining the best organizational results 
. Such developed products and services increase an organization’s ability to expand its market share to exceed those of competitors 
, and can also improve the investment return and sales return, which is reflected in the rates of growth and profitability 
. Besides, the ability to create new administrative manners and establish novel business models enhancing the efficient and optimal use of organizational resources is highly beneficial [44,58]
. Phankhong et al. (2017) stressed that innovation is the distinguishing feature in improving organizational performance through focusing on continuous development activities and increasing the productivity of production elements 
. Thereby, it was postulated that:
Hypothesis 3 (H3). Innovation capability has a positive influence on organizational performance.
Atieno and Senaji (2017) praised the role that strategic agility plays in improving the performance of organizations by stimulating a sense of timing, which constitutes a milestone as the early or late presentation of organizations’ offers leads to a decrease in efficiency and the maximization of costs 
. Clauss et al. (2019) argued that organizational performance is significantly related to the ability to manage resources to ensure the achievement of effectiveness and harmony with the change in customer requirements 
. Furthermore, Vaillant and Lafuente (2019) indicated that the ability to adapt to the conditions of the work environment, the possession of flexible resources that can be reconfigured to enhance the innovation ability, a collective commitment to achieving strategic goals, and research and development activities have crucial effects on the provision of a variety of sophisticated products and services 
. In addition, organizations that always strive to keep pace with the change in customer desires by relying on unique offers of goods and services have a greater market share than their competitors, achieve high financial returns, and their customers are loyal to their products, which leads to the improvement of their organizational performance 
. Accordingly, the fourth research hypothesis can be formulated as follows:
Hypothesis 4 (H4). Innovation capability has a mediating influence on the relationship between strategic agility and organizational performance.
shows the proposed model, which indicates the hypothetical relationships between strategic agility as an independent variable, organizational performance as a dependent variable, and innovation capability as a mediating variable.
Figure 1. Research framework.