STRATEGY FORMULATION AND SUSTAINABILITY PERFORMANCE IN INDIGENOUS (BUMIPUTERA) CONSTRUCTION COMPANIES IN MALAYSIA: EXAMINING THE MEDIATING ROLE OF STRATEGIC AGILITY
DOI:
https://doi.org/10.21837/pm.v23i38.1776Keywords:
Strategic planning, strategy formulation, strategic agility, sustainability performance, Indigenous construction companiesAbstract
This study examines the mediating role of strategic agility in the relationship between strategy formulation and sustainability performance of Indigenous construction companies in Selangor. Adopting a quantitative design, data were collected through an online survey of G7 Indigenous construction, with 69 responses obtained from random sample of 100 companies registered in the Construction Industry Development Board of Malaysia database. Using SmartPLS 4.0 for Structural Equation Modeling (SEM), the analysis revealed that both strategy formulation and strategic agility significantly improve firm performance. Moreover, strategic agility was found to mediate the positive relationship between strategy formulation and sustainable performance. These findings provide empirical support to the theory of maneuvers and the strategic management literature by examining the relationships between the variables. The findings of this study will encourage Indigenous construction companies to incorporate strategic agility practices into strategy formulation to survive and remain competitive in the challenging environment of the construction industry.
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