Strategic Human Capital and Organizational Agility: The Mediating Role of Dynamic Capabilities Among Corporate Managers

Abstract

In an increasingly dynamic and uncertain business environment, organizations require strategic capabilities to respond effectively to technological, market, and competitive changes. This study examines the relationships between Strategic Human Capital (SHC), Dynamic Capabilities (DC), and Organizational Agility (OA), with particular attention to the mediating role of DC among corporate managers in Riau Province, Indonesia. A quantitative cross-sectional survey was conducted involving 250 corporate managers from various industrial sectors. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with 5,000 bootstrap subsamples. The results indicate positive and significant relationships between SHC and DC (β = 0.765, p < 0.001), SHC and OA (β = 0.325, p < 0.001), and DC and OA (β = 0.582, p < 0.001). The model explains 58.5% of the variance in DC and 67.5% of the variance in OA. These findings indicate that strategic human capital is associated with organizational agility both directly and through the development of dynamic capabilities. The study contributes to the Resource-Based View and Dynamic Capability Theory by explaining the role of dynamic capabilities in linking strategic human capital with organizational agility in a rapidly changing business environment.