THE IMPACT OF STRATEGIC ENTREPRENEURSHIP ON ORGANIZATIONAL AGILITY: THE MEDIATING ROLE OF IMPROVISATIONAL BEHAVIOR IN THE BUSINESS PROCESS OUTSOURCING INDUSTRY

Abstract

This research investigates the mediating role of improvisational behaviour (IB) in the relationship between strategic entrepreneurship (SE) and organizational agility (OA) within Pakistan’s BPO sector. It emphasizes that while SE characterized by entrepreneurial mindset, innovation, and resource reconfiguration positively influences OA, the presence of IB enhances this relationship. The study proposes that employees’ ability to act spontaneously and adaptively strengthens the impact of SE on OA. Empirical findings from BPO firms in Islamabad and Rawalpindi, analysed using PLS-SEM, reveal that SE significantly boosts IB, which in turn positively affects OA. Furthermore, IB partially mediates this relationship, suggesting that agility is not solely the result of strategic intent but also hinges on employees’ flexible, real-time actions. This highlights IB as a crucial behavioural mechanism that bridges SE and OA, adding depth to the theoretical model and offering actionable insights for firms operating in dynamic service environments.

Keywords: Strategic Entrepreneurship, Organizational Agility, Improvisational Behavior, Business Process Outsourcing, Competitive Advantage