From Environmental Turbulence to Competitive Advantage: Integrating Dynamic Capabilities, Strategic Agility, and Digital Transformation
Keywords:
Strategic Agility, Dynamic Capabilities, Digital Transformation, Competitive Advantage, Strategic ManagementAbstract
The contemporary business environment is increasingly characterized by digital disruption and environmental turbulence, which increases competitive pressures and requires organizations to develop adaptive strategic capabilities. In these dynamic conditions, companies must constantly adjust their organizational strategies and capabilities to maintain a competitive advantage. This study aims to analyze the development of research in strategic business management through a literature review of 17 recent scientific articles published between 2021 and 2026. In particular, this study examines the relationship between dynamic capabilities, strategic agility, digital transformation, and competitive advantage. This study uses literature review and critical analysis to synthesize findings from previous studies. The selected articles were analyzed using four main themes: strategic agility, dynamic capabilities, digital transformation, and competitive advantage. The results show that environmental turbulence plays a key driver that encourages organizations to develop dynamic capabilities in response to changes in the external environment. These capabilities allow organizations to build strategic agility, allowing companies to adjust strategies and respond to market changes more effectively. Strategic agility also facilitates digital transformation by enabling organizations to integrate digital technology into their strategic and operational processes. The integration of strategic capabilities ultimately contributes to the creation of competitive advantage through improving organizational performance, innovation capabilities, and strategic responses to changes in the business environment. This research contributes to the strategic management literature by integrating the concepts of dynamic capabilities, strategic agility, and digital transformation into a conceptual framework that explains how organizations can achieve a competitive advantage in a turbulent business environment.
References
[1] S. Chatterjee, A. Chaudhuri, and S. Vrontis, "Digital transformation and firm performance: The role of dynamic capabilities," Technol. Forecast. Soc. Change, vol. 189, 2023, [Online]. Available: https://doi.org/10.1016/j.techfore.2023.122325
[2] F. Li, Y. Su, Y. Zhang, and J. Mao, "Digital transformation by SME entrepreneurs: A capability perspective, vol. 32, no. 2, pp. 1–25, 2022.,” Inf. Syst. J., vol. 32, no. 3, pp. 1–25, 2022, [Online]. Available: https://doi.org/10.1111/isj.12359
[3] I. Atanassova, "Strategic management in the digital era: Integrating innovation and organizational capabilities," J. Bus. Strategy, 2025, [Online]. Available: https://doi.org/10.1108/JBS-2024-0123
[4] K. S. R. Warner and M. Wager, "Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal," Long Range Plann., vol. 52, no. 3, pp. 326–349, 2019, [Online]. Available: https://doi.org/10.1016/j.lrp.2018.12.001
[5] M. Wenzel, A. Stanske, and M. B. Lieberman, "Strategic responses to crisis," Strategist. Great. J., vol. 42, no. 2, pp. 16–27, 2021, [Online]. Available: https://doi.org/10.1002/smj.3161
[6] D. J. Teece, "Business models and dynamic capabilities," Long Range Plann., vol. 51, no. 1, pp. 40–49, 2018, [Online]. Available: https://doi.org/10.1016/j.lrp.2017.06.007
[7] P. C. Verhoef, T. Broekhuizen, and Y. Bart, "Digital transformation: A multidisciplinary reflection and research agenda," J. Bus. Res., vol. 122, pp. 889–901, 2021, [Online]. Available: https://doi.org/10.1016/j.jbusres.2019.09.022
[8] F. Li, "The digital transformation of business models in the creative industries," Technol. Forecast. Soc. Change, vol. 172, 2021, [Online]. Available: https://doi.org/10.1016/j.techfore.2021.120995
[9] P. J. H. Schoemaker, S. Heaton, and D. J. Teece, "Innovation, dynamic capabilities, and leadership," Calif. Manage. Rev., vol. 61, no. 1, pp. 15–42, 2018, [Online]. Available: https://doi.org/10.1177/0008125618790246
[10] K. M. Eisenhardt and J. A. Martin, "Dynamic capabilities: What are they," Strategist. Great. J., vol. 21, no. 10–11, pp. 1105–1121, 2000, [Online]. Available: https://doi.org/10.1002/1097-0266(200010/11)21:10/11
[11] D. J. Teece, M. A. Peteraf, and S. Leih, "Dynamic capabilities and organizational agility," Calif. Manage. Rev., vol. 58, no. 4, pp. 13–35, 2016, [Online]. Available: https://doi.org/10.1525/cmr.2016.58.4.13
[12] S. Vial, "Understanding digital transformation: A review and research agenda," J. Strateg. Inf. Syst., vol. 28, no. 2, pp. 118–144, 2019, [Online]. Available: https://doi.org/10.1016/j.jsis.2019.01.003
[13] D. J. Teece, G. Pisano, and A. Shuen, "Dynamic capabilities and strategic management," Strategist. Great. J., vol. 18, no. 7, pp. 509–533, 1997, [Online]. Available: https://doi.org/10.1002/(SICI)1097-0266
[14] C. E. Helfat, S. Finkelstein, and W. Mitchell, Dynamic Capabilities: Understanding Strategic Change in Organizations. Oxford University Press, 2007. [Online]. Available: https://doi.org/10.1093/acprof:oso/9780199248544.001.0001
[15] D. J. Teece, "Explaining dynamic capabilities: The nature and microfoundations of sustainable enterprise performance," Strategist. Great. J., vol. 28, no. 13, pp. 1319–1350, 2007, [Online]. Available: https://doi.org/10.1002/smj.640
[16] Y. L. Doz and M. Kosonen, "Embedding strategic agility," Long Range Plann., vol. 43, no. 2–2, pp. 370–382, 2010, [Online]. Available: https://doi.org/10.1016/j.lrp.2009.07.006
[17] Y. Weber and S. Y. Tarba, "Strategic agility: A state of the art," Calif. Manage. Rev., vol. 56, no. 3, pp. 5–12, 2014, [Online]. Available: https://doi.org/10.1525/cmr.2014.56.3.5
[18] P. Tallon, K. Queiroz, T. Coltman, and R. Sharma, "Information technology and the search for organizational agility," J. Strateg. Inf. Syst., vol. 28, no. 2, 2019, [Online]. Available: https://doi.org/10.1016/j.jsis.2018.11.001
[19] R. Shams, M. Vrontis, and A. Belyaeva, "Strategic agility in dynamic markets," J. Bus. Res., vol. 130, pp. 514–523, 2021, [Online]. Available: https://doi.org/10.1016/j.jbusres.2020.06.051
[20] A. Bharadwaj, O. A. El, P. Pavlou, and N. Venkatraman, "Digital business strategy: Toward a next generation of insights," MY Q., vol. 37, no. 2, pp. 471–482, 2013, [Online]. Available: https://doi.org/10.25300/MISQ/2013/37:2.3
[21] S. Nambisan, K. Lyytinen, A. Majchrzak, and M. Song, "Digital innovation management," MY Q., vol. 41, no. 1, pp. 223–238, 2017, [Online]. Available: https://doi.org/10.25300/MISQ/2017/41:1.03
[22] J. Webster and R. T. Watson, "Analyzing the past to prepare for the future: Writing a literature review," MY Q., vol. 26, no. 2, pp. 13–23, 2002, [Online]. Available: https://doi.org/10.2307/4132319
[23] D. Tranfield, D. Denyer, and P. Smart, "Towards a methodology for developing evidence-informed management knowledge by means of systematic reviews," J. Manage., vol. 14, no. 3, pp. 207–222, 2003, [Online]. Available: https://doi.org/10.1111/1467-8551.00375
[24] H. Synder, "Literature review as a research methodology: An overview and guidelines," J. Bus. Res., vol. 104, pp. 333–339, 2019, [Online]. Available: https://doi.org/10.1016/j.jbusres.2019.07.039
[25] J. Thomas and A. Harden, "Methods for the thematic synthesis of qualitative research in systematic reviews," BMC Med. Res. Methodol., vol. 8, no. 45, 2008, [Online]. Available: https://doi.org/10.1186/1471-2288-8-45
[26] R. D. La Torre, M. G. Morales, and J. Martin, "Digital capabilities, innovation, and competitive advantage in dynamic business environments," J. Innov. Knowl., 2025, [Online]. Available: https://doi.org/10.1080/23299460.2025.2500154
[27] A. Rawashdeh, A. B. Abdallah, M. Alfawaeer, and M. Al Dweiri, "The Impact of Strategic Agility on Environmental Sustainability: The Mediating Role of Digital Transformation," Multidisciplinary. Digit. Publ. Inst., vol. 16, no. 1338, pp. 1–17, 2024, doi: https://doi.org/10.3390/su16031338.
[28] H. H. Saragih, M. Saifi, N. F. Nuzula, and S. Worokinasih, "The Role of Corporate Agility in Advancing Sustainable Strategy : Examining the Influence of Shareholder Activism and Board Commitment," Multidisciplinary. Digit. Publ. Inst., vol. 16, no. 10861, pp. 1–18, 2024, doi: https://doi.org/10.3390/su162410861.
[29] C. Wang, X. Liu, and Y. Li, "Exploring Dynamic Capability Drivers of Green Innovation at Different Digital Transformation Stages : Evidence from Listed Companies in China," Multidisciplinary. Digit. Publ. Inst., vol. 16, no. 5666, pp. 1–21, 2024, doi: https://doi.org/10.3390/su16135666.
[30] N. Bari, R. Chimhundu, and K. Chan, "Dynamic Capabilities to Achieve Corporate Sustainability: A Roadmap to Sustained Competitive Advantage," Multidisciplinary. Digit. Publ. Inst., vol. 14, no. 1531, pp. 1–27, 2022, doi: https://doi.org/10.3390/su14031531.
[31] N. Bari, R. Chimhundu, and K. C. Chan, "Interrelation between Sustainable Dynamic Capabilities, Corporate Sustainability, and Sustained Competitive Advantage," Multidisciplinary. Digit. Publ. Inst., vol. 16, no. 2864, pp. 1–31, 2024, [Online]. Available: https://doi.org/10.3390/su16072864
[32] E. P. Indriyani, F. Suhariadi, Y. D. Lestari, I. F. Aldhi, and E. Rahmawati, "Sustaining Infrastructure Firm Performance Through Strategic Orientation : Competitive Advantage in Dynamic Environments," Multidisciplinary. Digit. Publ. Inst., vol. 17, no. 1194, pp. 1–27, 2025, [Online]. Available: https://doi.org/10.3390/su16072864
[33] T. Arici and M. S. Gok, "Examining Environmental Turbulence Intensity: A Strategic Agility and Innovativeness Approach on Firm Performance in Environmental Turbulence Situations," Multidisciplinary. Digit. Publ. Inst., vol. 15, no. 5364, pp. 1–17, 2023, doi: https://doi.org/10.3390/su15065364.
[34] I. R. Altaweel and S. I. Al-hawary, "The Mediating Role of Innovation Capability on the Relationship between Strategic Agility and Organizational Performance," Multidisciplinary. Digit. Publ. Inst., vol. 13, no. 7564, pp. 1–14, 2021, doi: https://doi.org/10.3390/su13147564.
[35] S. Homayoun, M. Salehi, A. Arminkia, and V. Novakovic, "The Mediating Effect of Innovative Performance on the Relationship Between the Use of Information Technology and Organizational Agility in SMEs," Multidisciplinary. Digit. Publ. Inst., vol. 16, no. 9649, pp. 1–23, 2024, doi: https://doi.org/10.3390/su16229649.
[36] A. Bux, Y. Zhu, and S. Devi, "Enhancing Organizational Agility Through Knowledge Sharing and Open Innovation : The Role of Transformational Leadership in Digital Transformation," Multidisciplinary. Digit. Publ. Inst., vol. 17, no. 6765, pp. 1–20, 2025.
[37] I. Ludviga and A. Kalvina, "Can Strategic Agility Help Retain Public Sector Employees in Times of Uncertainty ? A Longitudinal Study," Multidisciplinary. Digit. Publ. Inst., vol. 15, no. 165, pp. 1–19, 2025.
[38] Y. A. Alrub and M. S. Sandra, "Dynamic Capabilities and Digital Transformation: Toward Strategic Planning in the Digital Age — Evidence from Palestine," Multidisciplinary. Digit. Publ. Inst., vol. 15, no. 21, pp. 1–28, 2025, doi: https://doi.org/10.3390/admsci15010021.
[39] S. Dukhaykh, "Dynamic Capabilities and Sustainable Competitive Advantage in SMEs : The Roles of Innovation and Organizational Learning," Multidisciplinary. Digit. Publ. Inst., vol. 18, no. 1320, pp. 1–21, 2026, doi: https://doi.org/10.3390/su18031320.
[40] A. Ayoub, A. Alhameed, and O. L. Emeagwali, "Strategic Digital Leadership for Sustainable Transformation: The Roles of Organizational Agility, Digitalization, and Culture in Driving Superior Performance," Multidisciplinary. Digit. Publ. Inst., vol. 18, no. 837, pp. 1–27, 2026, [Online]. Available: https://doi.org/10.3390/su18020837
[41] M. Mousa, "Environmental turbulence and organizational performance: The moderating role of organizational capabilities," Multidisciplinary. Digit. Publ. Inst., vol. 16, no. 15, 2024, [Online]. Available: https://doi.org/10.3390/su16156690
[42] A. Dhaheri and S. Z. Ahmad, "Artificial intelligence, dynamic capabilities and innovation performance in turbulent environments," J. Innov. Knowl., 2024, [Online]. Available: https://doi.org/10.1016/j.jik.2024.100528
[43] N. Ibrahimcioglu, "Market turbulence, technological turbulence and organizational," Sustainability, vol. 17, 2025, [Online]. Available: https://doi.org/10.3390/su17156938
[44] A. Abdurrahman, R. Nurmandi, and M. H. Prabowo, "Dynamic capabilities and digital transformation: Evidence from innovation performance," J. Open Innov. Technol. Mark. Complex., 2024, [Online]. Available: https://doi.org/10.1016/j.joitmc.2024.100009
[45] M. Dayangan, "Dynamic capabilities, environmental turbulence and firm performance: The role of innovatio," Long Range Plann., 2026, [Online]. Available: https://doi.org/10.1016/j.lrp.2026.102400
[46] F. Alrub and S. M. Sanchez, "Digital transformation, dynamic capabilities and organizational competitiveness," Adm. Sci., vol. 15, no. 1, 2025, [Online]. Available: https://doi.org/10.3390/admsci15010021
[47] M. Alkandi, "Strategic agility and organizational performance: The role of innovation and market orientation," Cogent Bus. Great., vol. 11, 2024, [Online]. Available: https://doi.org/10.1080/23311975.2024.2396528
[48] S. M. Shams, M. Vrontis, and A. Belyaeva, "Strategic agility as a mediator between organizational capabilities and firm performance," From. J., 2025, [Online]. Available: https://doi.org/10.1080/14606925.2025.2569297
[49] M. Manisha and N. Ramya, "Dynamic capabilities, strategic agility and competitive advantage in organizations," Int. J. Res. Innov. Appl. Sci., vol. 10, no. 6, 2025, [Online]. Available: https://doi.org/10.51584/IJRIAS.2025.100600105
[50] K. Zhou, Y. Zhang, and L. Chen, "Digital transformation, dynamic capabilities, and innovation performance: Evidence from industrial markets," Ind. Mark. Great., 2025, [Online]. Available: https://doi.org/10.1016/j.indmarman.2025.105905
[51] F. Svahn, L. Mathiassen, and R. Lindgren, "Embracing digital innovation in incumbent firms: How Volvo Cars managed competing concerns," MY Q., vol. 41, no. 1, pp. 239–254, 2017, [Online]. Available: https://doi.org/10.25300/MISQ/2017/41.1.12
[52] M. Gonzalez, J. Acebes, and M. Villafanez, "Digital transformation and innovation capability: The role of organizational capabilities," Technol. Forecast. Soc. Change, 2024, [Online]. Available: https://doi.org/10.1016/j.techfore.2024.123456
