Abstract

The increasing dynamism of organizational environments has heightened the need for management approaches that enable adaptability, rapid decision-making, and sustained performance. Agile management has gained prominence as a flexible managerial approach; however, empirical evidence regarding its strategic role beyond project-level implementation remains limited. Drawing on dynamic capability theory, this study conceptualizes agile management as a dynamic capability and examines its role in enhancing team performance and organizational responsiveness. Using a quantitative research design, the study analyzes 1,442 completed Agile-based organizational transactions conducted between 2020 and 2021. The findings indicate that agile management practices are positively associated with improved team performance, characterized by efficient execution, coordination, and adaptability. Furthermore, enhanced team performance contributes to higher organizational responsiveness, enabling organizations to respond more effectively to changing market demands and environmental uncertainty. The results suggest that team performance plays a critical enabling role in translating agile management practices into organizational-level outcomes. This study contributes to the literature by empirically positioning agile management as a strategic dynamic capability and by clarifying the mechanism through which agility influences organizational responsiveness. The findings offer important implications for managers seeking to strengthen organizational adaptability and performance in dynamic and knowledge-intensive environments.

Keywords: Agile Management, Dynamic Capability, Team Performance, Organizational Responsiveness, Adaptive Organizations

How to Cite:

Mukti, B. & Putri, N. A., (2026) “Agile Management as a Dynamic Capability: Its Role in Enhancing Team Performance and Organizational Responsiveness”, Agile Management 1(1), 46-58. doi: https://doi.org/10.63913/am.v1i1.126