CENTRALIZATION AND ORGANIZATIONAL AGILITY: A STUDY OF QUICK SERVICE RESTAURANTS IN PORT HARCOURT, RIVERS STATE

Abstract

Organizational agility is essential for thriving in today's dynamic business environments, enabling rapid adaptation to changes and fostering competitive advantage. This study examines the relationship between centralization and organizational agility, focusing on its dimensions: sensing, decision-making, and acting agility. Using a quantitative research design and Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from a sample of 138 respondents in selected Quality Service Restaurants in Port Harcourt, Rivers State, Nigeria. The findings reveal a robust positive relationship between centralization and organizational agility, with a path coefficient of 0.980. Key indicators of agility exhibited high correlation, confirming the significance of centralized structures in enhancing organizational responsiveness. The study aligns with existing research, demonstrating that centralized decision-making improves environmental awareness, facilitates rapid decision-making, and enables efficient execution of actions. It underscores the role of centralized governance and IT capabilities in fostering agility, particularly in emerging markets. These insights contribute to the literature by highlighting the strategic importance of balancing centralization and flexibility in organizational structures to optimize agility and performance.