ACHIEVING WORKFORCE AGILITY IN DYNAMIC ENVIRONMENTS

Abstract

Continuous turbulence in the business environment fuelled by technological disruptions has led firms in a frantic search for sustainable competitive advantages as they attempt to stay relevant in a dynamic environment. Workforce agility has recently emerged in the industry and academic spotlight as a strategy that when implemented effectively, promises companies not only survival but a way to thrive in a fast-changing environment.

This qualitative study builds on dynamic capabilities and workforce agility literature to answer the central research question: How is workforce agility achieved in Small Medium Enterprises? The thesis aims to explore the paradigm of organizational agility from an agile workforce perspective in an effort to contribute relevant insight and a more in-depth understanding on how to firms can leverage workforce agility as a dynamic capability which will facilitate sustainable competitive advantages. The study uses empirical data gathered from five Finnish information technology firms. Five informants were interviewed using semi-structured interviews.

The results indicate that an agile workforce can be built through encouraging five crucial capabilities: learning, teamwork, problem solving, information seeking and decision making through the initiation and implementation of six support practices: education and training, supervisor support, employee involvement, financial rewards, use of collaborative technologies and provision of flexible work conditions. The results also show failure to adapt to change as the major barrier to workforce agility which when mitigated efficiently, can lead to workforce agility. The research highlights that it is imperative that firms develop the dynamic capability of workforce agility in order to adeptly sense and seize opportunities that a dynamic environment presents.