The Impact of Business Environmental Factors on Performance Through Strategic Agility and Business Model Innovation: An Analysis Based on Dynamic Capabilities Theory

This article aims empirically to assess the indirect effect of two critical environmental factors, technological turbulence and research and development (R&D) incentives on corporate performance through strategic agility (SA) and business model innovation. Based on dynamic capabilities theory, this study explains how business environmental factors trigger a chain of events by initially influencing SA that further drives the renewal of the business model, ultimately leading to an increase in performance. The data from 410 Turkish companies are analyzed through the structural equation modeling method, giving details of the causality relationships related to the sequential effects according to a firm's sector. Findings highlight that the impact of R&D incentives remains relatively low compared to the impact of technology turbulence, and the observed effects change according to the industry in which a firm operates. After discussing detailed results and summarizing contributions, this article concludes by suggesting future research topics.