Unpacking strategic agility in SMEs from transitional periphery economies: exploring its manifestations and mechanisms

Abstract

Purpose Small and medium-sized enterprises (SMEs) in transitional periphery economies face persistent turbulence stemming from economic volatility, institutional voids and geopolitical shocks. This study aims to investigate how SMEs develop and enact strategic agility (SA) in such environments, with a focus on Kazakhstan.

Design/methodology/approach Drawing on 31 in-depth interviews with owners, directors and senior managers from 16 SMEs, the authors adopt an exploratory qualitative research design with grounded-theory coding techniques to inductively develop a framework of the enablers, mechanisms and manifestations of SA.

Findings The findings reveal that SA is fostered through multi-level enablers – environmental, network, firm and individual – that interact to shape organizational responses. These enablers operate via three mechanisms: sensing (detecting and interpreting turbulence), coping (absorbing shocks and ensuring survival) and adapting (reconfiguring resources and strategies). The authors show how coping replaces the canonical “seizing” stage in dynamic capability theory, reflecting the survival imperative in resource-constrained, institutionally fragile contexts. SA is manifested across four functional domains: marketing, human resources, product and service offerings and relational ties.

Originality/value By demonstrating how SMEs in Kazakhstan re-sequence and operationalize SA under conditions of scarcity and instability, this study refines dynamic capability theory, extends the literature on SME agility in transition economies and offers practical insights for managers seeking to sustain competitiveness in turbulent environments.