Strategic Agility: An Emerging Markets Perspective

Complex organizations set in increasingly dynamic business environments need to be strategically agile to stay at the frontier of market, technological, and regulatory developments. Strategic agility is even more crucial for multinational enterprises (MNEs) in emerging markets due to higher levels of environmental dynamism and unpredictable market developments. As established markets become progressively more saturated, reaching up to four billion people in emerging markets provides tremendous opportunities and challenges, mastery of which may not be guranteed by MNEs' conventional global capabilities. But how do firms conquer emerging markets and deal adeptly with local idiosyncrasies? To address this important question as well as the conundrum of strategic agility I have conducted extensive qualitative research in a world-leading Business Process Outsourcing (BPO) provider serving media, retail, transport and tourism, industrial, energy, finance and telecommunications organizations in Latin America. In this paper, first, the BPO provider's success at mastering local, institutional, and corporate challenges is traced to strategic agility. Next, I uncover sensing opportunities, leveraging resources and capabilities, and appropriating value as the key elements of strategic agility in emerging markets. Finally, I distill practical and theoretical insights on how strategic agility is developed and driven by MNEs in emerging markets and discuss the implications for regenerating competitive advantage.