Bridging the gap between agility and performance: The role of business model innovation

Research at the nexus of agility and firm performance has been encouraging, but mechanisms governing this relationship remain largely underexplored. This paper advances this stream of research by investigating the role of a firm’s pursuit of business model innovation under different levels of resource slack as a conduit through which agility is liked to superior performance. Time-lagged data from a sample of Australian firms supported this prediction, showing that agility enhances pursuit of BMI and through which firm performance. In addition, slack resources seem not to have any bearing on these relationships. These findings suggest that the agility-performance relationship is more complex than previously envisaged. We discuss implications of these findings and illuminate several directions for future research.