Pivotal Role of Organizational Agility in Hospitality Industry in Indonesia: Mediating Role of Organizational Culture and Performance Management System

This study aims to investigate the influence of organizational agility on organizational performance in the hospitality industry. The post-covid data signifies the need for research investigating how starred hotels in Indonesia can improve their competitive performance. This study also investigates the important role of organization culture and performance management system in the relationship between organizational agility and organizational performance. The data analysis technique used is Structural Equation Modeling (SEM) with SmartPLS 4 Software to analyze the relationship between variables. The sampling technique used is non-probability on 105 employees/business owners in the hotel sector with 3-5 stars in Indonesia. The findings show that organization agility does not possess any direct correlation with organization performance among starred hotels in Indonesia. Furthermore, positive and significant correlation from organizational agility to performance can be established through the mediatory of performance management system implementation and supportive organizational culture among the industry. The result of this study generates enticing implications towards hospitality business leaders.