International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Strategic Agility and Innovation Capability in Indian IT SMEs: Navigating Post-Pandemic Volatility

Author(s) Prof. Dr. ILYAS UR RAHMAN
Country India
Abstract The post-pandemic era has presented Small and Medium Enterprises (SMEs) in the Indian Information Technology (IT) sector with unprecedented volatility. This study investigates the role of Strategic Agility (SA) as a dynamic capability in fostering Innovation Capability (IC) within this critical segment of the economy. A cross-sectional research design was employed, using a structured questionnaire to collect data from 127 managers and founders of IT SMEs based in Hyderabad and Bangalore. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the hypothesized relationships. The results indicate a significant positive impact of Strategic Agility on Innovation Capability (β = 0.58, p < 0.001). Furthermore, the three sub-dimensions of Strategic Agility—Strategic Sensitivity (β = 0.32, p < 0.01), Collective Commitment (β = 0.28, p < 0.01), and Resource Fluidity (β = 0.25, p < 0.05)—were all significant predictors. The model explains 49% of the variance in Innovation Capability. The findings suggest that for Indian IT SMEs to thrive in turbulent environments, leaders must cultivate strategic sensitivity to market shifts, foster collective commitment to new directions, and maintain fluid resource allocation. This research provides a actionable framework for SME leaders and policymakers to enhance competitiveness. This study is among the first to empirically test the relationship between Strategic Agility and Innovation Capability in the context of Indian IT SMEs, offering a granular view of the specific agile capabilities that drive innovation.
Keywords Strategic Agility, Innovation Capability, IT SMEs, Dynamic Capabilities, Post-Pandemic Business, PLS-SEM, India
Field Business Administration
Published In Volume 7, Issue 5, September-October 2025
Published On 2025-10-17
DOI https://doi.org/10.36948/ijfmr.2025.v07i05.58212
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E-ISSN 2582-2160
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