Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024)

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Product Market Competition and Firm Innovation: The Mediating Role of Strategic Agility in Driving Competitive Advantage

Authors
Sazilah Mohd Saad1, *, Yanti Mustapha2, Mohd Faiz Hilmi3, Abdul Mutalib Mahmood4, Marzlin Marzuki5, Roshidah Safeei6
1Faculty of Accountancy, University Technology MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Malaysia
2Faculty of Business and Management, University Technology MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Malaysia
3School of Distance Education, Universiti Sains Malaysia, Penang, Malaysia
4Etiqa Insurance and Takaful Berhad, Papar, Malaysia
5Faculty of Accountancy, University Technology MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Malaysia
6Faculty of Accountancy, University Technology MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Malaysia
*Corresponding author. Email: sazilah@uitm.edu.my
Corresponding Author
Sazilah Mohd Saad
Available Online 22 August 2025.
DOI
10.2991/978-94-6463-827-1_20How to use a DOI?
Keywords
Product Market Competition; Strategic Agility; Firm Innovation; Competitive Advantage; Dynamic Capabilities
Abstract

This study explores the mediating role of strategic agility in the relationship between product market competition and firm innovation, addressing the need for firms to adapt and innovate in highly competitive environments. While product market competition is recognized as a driver of innovation, its effects can be stimulatory or restrictive depending on a firm’s ability to respond effectively. The study develops a conceptual framework that integrates strategic agility as a key mediator, enabling firms to navigate competitive pressures and enhance innovation capabilities. A narrative review methodology was used to bring together existing literature on strategic agility, product market competition, and firm innovation, providing a comprehensive understanding of their interconnected dynamics. The findings reveal that firms with greater strategic agility are better able to balance exploration and exploitation strategies, adapt to market shifts, and transform competitive pressures into innovative outcomes, thereby sustaining competitive advantage. The study contributes to the theory of dynamic capabilities by extending the competition-innovation-performance framework and emphasizing the role of agility in driving innovation. From a practical perspective, it offers insights for managers on the importance of agility-driven strategies, such as flexible resource allocation, dynamic capabilities, and data-driven innovation. However, due to the conceptual nature of the study, future research should empirically validate the proposed framework across different industries and market contexts to enhance its applicability and relevance.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
22 August 2025
ISBN
978-94-6463-827-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-827-1_20How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Sazilah Mohd Saad
AU  - Yanti Mustapha
AU  - Mohd Faiz Hilmi
AU  - Abdul Mutalib Mahmood
AU  - Marzlin Marzuki
AU  - Roshidah Safeei
PY  - 2025
DA  - 2025/08/22
TI  - Product Market Competition and Firm Innovation: The Mediating Role of Strategic Agility in Driving Competitive Advantage
BT  - Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024)
PB  - Atlantis Press
SP  - 297
EP  - 318
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-827-1_20
DO  - 10.2991/978-94-6463-827-1_20
ID  - Saad2025
ER  -