The development of organizational agility: The role of bricolage in resource management

Abstract

The study aims to understand how organizations can achieve agility, the organizational capability to effectively respond to environmental changes, in a rapid and flexible manner, through the assembly of relevant organizational resources. Agility represents a difficult but increasing necessary strategic imperative for organizations competing in today?s business environments. Due to the increasing hyper-competition and dynamism found in today?s business landscape, coupled with the characteristics that change today is rapid, shocking, surprising, and disruptive, organizations need new approaches to survive and compete in such environments. Today?s organizations increasingly recognize that agility is one answer to this problem. Using the case study research method, this study presents two case studies of organizations undertaking initiatives to develop organizational agility due to environmental pressures to change. Applying the resource-base view of the firm, the study finds the agility can be achieved through the development of lower level capabilities that determine how resources are managed and leveraged on in the organization. In particular, the study presents a framework for the development of a capability to be explorative or exploitative of resource portfolios and inventories, as well as a capability to adjust resource configurations episodically in a continuous manner. This second capability is enacted through bricolage, the ability to tinker with resource allocation at the time of their use. Coupled together, these two capabilities developed the capability to be agile in organizations. The research suggests some theoretical and practical implications. Theoretically, this research represents the application of RBV concepts (capabilities, routines, resources and resource management activities) and, more uniquely, the concept of bricolage, to strategic management literature. The study sheds some light on the development of organizational agility as a competitive and survival mechanism for organizations facing tremendous environmental pressures. Furthermore, the study demonstrates that agility is not merely the ability to adjust resource configurations, but is the ability to do so episodically, on a continuous basis. From a managerial perspective, the study identifies those resources and cultural elements necessary for organizations to develop and enjoy the benefits of organizational agility.