Linking cultural dynamics to organizational agility through dynamic managerial capability in Bali’s SMEs
DOI:
https://doi.org/10.12928/fokus.v16i2.16838Abstract
Organizational agility is essential for small and medium enterprises confronting environmental turbulence, yet how culturally embedded values translate into adaptive capabilities remains insufficiently explained. This study examines how cultural dynamics directly influence organizational agility and how dynamic managerial capability mediates this relationship within Bali’s culturally distinctive small- and medium-enterprise environment, characterized by Tri Hita Karana and Menyama Braya. Using a quantitative, cross-sectional design, the study used non-probability purposive sampling with convenience-based access, yielding 153 valid managerial responses from local small and medium enterprises in industry, services, and tourism. The study analyzed the data using partial least squares structural equation modeling. The results show significant positive relationships between cultural dynamics and dynamic managerial capability, cultural dynamics and organizational agility, and dynamic managerial capability and organizational agility. The significant indirect effect indicates complementary partial mediation, and the model explains variance in organizational agility. The findings advance dynamic capability theory by identifying a dual-pathway mechanism whereby culturally embedded reciprocity facilitates collective coordination while activating managerial cognition, human capital, and social capital for adaptive resource reconfiguration. Nevertheless, collectivist consensus may also constrain managerial discretion, challenging assumptions that cultural cohesion invariably enhances agility. Practically, small and medium enterprises should integrate culturally grounded cooperation with managerial capability development. These context-specific findings warrant cautious causal interpretation and further longitudinal validation.
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