The Effect of Perceived Agile Human Resource Management and Marketing Agility on Company Performance Through the Mediation of Working Capital Allocation Effectiveness (A Study at PT. ABC, Lamongan Regency)

Abstract

Objective – Shifting competitive pressure in the market has made organizational agility a requirement, not an option. This study examines how Agile Human Resource Management (Agile HRM) and Marketing Agility shape company performance, with the effectiveness of working capital allocation acting as a mediating variable in that relationship. Design/Methodology/Approach – This study employed a descriptive quantitative methodology, using a non-probability sampling technique with a saturation sampling approach. A total of 120 managers and supervisors from manufacturing companies participated as respondents. The study analyzed the questionnaire data using Partial Least Squares Structural Equation Modeling (PLS-SEM) in the SmartPLS software. Findings – The findings show that both Agile HRM and Marketing Agility have a significant positive effect on company performance, both directly and indirectly, through the mediating pathway of working capital allocation effectiveness. Implications – These results confirm that organizational agility needs responsive working capital management to convert HR and marketing strategy into stronger company performance.