Abstract
—While strategic agility is increasingly acknowledged as a critical source of innovation and product development performance (PDP), little attention has been paid to the micro-individual capabilities that translate strategic agility into greater PDP. This study examines the mediating roles of employee resilience and self-efficacy as key dynamic micro-level (individual) capabilities that connect firms' strategic agility to their PDP in the emerging market of Türkiye. We adopt a microfoundations approach and run a multilevel analysis using data from 758 managers working in 185 firms to test our hypotheses. We draw on the microfoundations of PDP and provide important insights into how individual capabilities enable attaining higher PDP in emerging markets. In particular, the findings suggest that strategic agility is positively associated with PDP. That said, the impact of strategic agility on PDP-both examined at the organizational level-is conveyed through individual-level capabilities of employee resilience and self-efficacy. Index Terms—Strategic agility; product development performance; employee resilience; self-efficacy; microfoundations; emerging markets; multilevel analysis. MANAGERIAL RELEVANCE STATEMENT—Our study carries several managerial implications. We indicate that strategic agility can help firms achieve superior PDP. Managers and firms can draw on this by emphasizing strategic agility as a key driver of product development performance. This implies that investing in strategic agility is vital for firms to launch a new product, renew an existing product and or introduce an old product to a new market. Also, we further demonstrate that employee resilience and self-efficacy act as mediators in linking strategic agility and PDP. Therefore, beyond investing in enhancing strategic agility, firms should develop their employees' resilience and self-efficacy to realize the full potential of strategic agility in pursuing product development. This is beneficial for firms to maximize product development as their employees can proactively interact and respond to market changes and deal with stress and crises to solve any problems in the product development process. 2