Achieving superior performance in international markets: the roles of organizational agility and absorptive capacity

Abstract

Purpose In the era of Industry 4.0, international firms are required to respond to more complex and frequent changes in the global market. This study aims to explore the role of organizational agility as a key driver to generate superior performance in international markets in the era of technological transformation and how the degree of such impact is affected by the absorptive capacity of companies. Design/methodology/approach This research uses the results of a survey targeting 228 Korean exporters to identify the link between organizational agility and business performance in the global market under different degrees of potential and achieved absorptive capacity in the Industry 4.0 era. Findings The empirical results indicate that companies with a high level of organizational agility outperform their counterparts in the global market. The data further revealed that realized absorptive capacity positively moderates the relationship between organizational agility and firm performance when it is achieved, whereas the moderating role of potential absorptive capacity is not significant. Originality/value This research contributes to the advancement of international business studies on organizational agility and Industry 4.0 by highlighting the implication of organizational agility on firm performance and the contingent role of absorptive capacity.