From capabilities to performance: how agility and resilience shape organisational outcomes in a digital era

Purpose This study examines how dynamic capabilities (DC) translate into organisational performance (OP) through parallel mediating roles of organisational agility (OA) and organisational resilience (OR) in Indian multi-sector organisations. Design/methodology/approach Cross-sectional survey data were collected from 184 managers across seven sectors in India. PLS-SEM was conducted using SmartPLS 4.0 with 5,000 bootstrap subsamples to test six hypotheses and the direct DC→OP path. Findings All six hypotheses were supported. DC predicted OA (β = 0.779) and OR (β = 0.822); OA (β = 0.596) and OR (β = 0.640) significantly predicted OP. Although the direct DC→OP relationship became negative after including both mediators, the overall indirect effect remained strongly positive, confirming that dynamic capabilities enhance organisational performance through agility and resilience pathways. Research limitations/implications Cross-sectional design and single-country scope limit causal inference. Longitudinal and multi-country studies are recommended. Practical implications DC investment should simultaneously build agility and resilience, with crisis preparedness embedded as a core organisational priority. Social implications Organisations developing dynamic capabilities contribute to societal resilience by sustaining employment and service continuity during disruptions. Originality/value At the policy level, government agencies and industry bodies should introduce digital capability-development programs for small and medium-sized enterprises, focusing on crisis preparedness, AI-enabled market sensing, and adaptive operational planning to strengthen resilience across emerging-economy business ecosystems.