Financial Agility as a Mediating Mechanism Linking Strategic Innovation and Firm Performance in High-Tech Enterprises

Abstract

This study investigates the mediating role of financial agility in the relationship between strategic innovation and firm performance among high-tech enterprises in sub-Saharan Africa. A multi-stage sampling approach was employed to collect data from 468 respondents across Nigeria (44.9%), South Africa (33.8%), and Kenya (21.3%), representing the ICT, electronics, and biotechnology sectors. Using structural equation modeling (SEM), the study tested four hypothesized relationships. The results reveal that strategic innovation has a significant positive effect on firm performance (β = 0.32, p < 0.01) and financial agility (β = 0.47, p < 0.001). Financial agility also exerts a strong positive influence on firm performance (β = 0.41, p < 0.001). The mediation analysis confirms that financial agility partially mediates the relationship between strategic innovation and firm performance, with an indirect effect of β = 0.19 (p < 0.001) and a variance accounted for (VAF) of 37.3%. The model explains 52% of the variance in firm performance and 44% in financial agility, with good model fit indices (SRMR = 0.057, NFI = 0.93, χ²/df = 2.14). The findings highlight financial agility as a crucial dynamic capability that enables innovative firms to translate strategic intent into superior performance outcomes. The study advances the Dynamic Capability Theory by emphasizing the financial dimension of agility and provides practical implications for managers and policymakers seeking to enhance innovation-driven growth in technology-intensive firms.