Fostering agility through leadership in technology firms

Abstract

Purpose This study aims to examine the relationships between transformational, transactional, and adaptive leadership styles and organisational agility in the India technology sector, with a focus on the mediating roles of organisational culture and dynamic capabilities in fostering agility within the STARA (Smart Technologies, Artificial Intelligence, Robotics, and Algorithms) environment. Design/methodology/approach Quantitative research was conducted using a cross-sectional survey design, and participants were drawn from different levels of technology firms in India. Stratified random sampling was used to obtain more generalised results, and 400 respondents completed the survey. The data were analysed through partial least squares structural equation modelling (PLS-SEM) using SmartPLS software. Findings Transactional leadership had the most positive relationship with dynamic capabilities, transactional leadership had the most positive relationship with organisational culture, and dynamic capabilities had the most positive relationship with organisational agility. Practical implications This study highlights that technology firms should foster a culture of innovation, collaboration, and adaptability by aligning leadership practices with organisational goals. Practical actions include implementing leadership development programs focused on creativity, establishing cross-functional collaboration platforms, setting up innovation laboratories, incentivising idea generation, and adopting agile project management methodologies. When supported by transformational and adaptive leadership, these initiatives can stimulate innovation and enhance agility in the STARA environment. Originality/value This study contributes to the literature by applying dynamic capabilities and competing values frameworks to analyse the relationships among leadership styles, organisational culture, dynamic capabilities, and organisational agility in STARA. This study is beneficial for scholars and managers aiming to improve agility in technology-intensive contexts.