Innovation as a mediator between organizational agility and performance: an analysis of the moderating effect of transformational leadership in Ecuador

Purpose This study examines how organizational agility contributes to organizational performance through innovation within the framework of dynamic capabilities theory. It further explores the role of transformational leadership as a contextual condition influencing this capability configuration. Design/methodology/approach A quantitative research design was employed using validated questionnaires administered to organizations across multiple sectors, resulting in 388 valid responses. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4 and SPSS to test mediation and moderation effects within the proposed model. Findings The results indicate that innovation plays a significant mediating role in the relationship between organizational agility and performance, revealing a partial mediation structure. Organizational agility exerts both direct and indirect effects on performance, with innovation serving as the primary transmission mechanism. Contrary to theoretical expectations, transformational leadership does not significantly moderate the relationship between agility and innovation, suggesting that innovation may emerge from structural and process-based conditions independently of leadership amplification. Originality/value This study advances dynamic capabilities theory by empirically distinguishing between adaptive capacity (agility) and transformative capability (innovation), demonstrating that performance improvements depend primarily on the institutionalization of innovation. It also refines microfoundational debates by examining and challenging, the assumed moderating role of transformational leadership.