MEDIATING ROLE OF STRATEGIC AGILITY ON THE RELATIONSHIP OF HRM STRATEGIES AND SUSTAINABLE COMPETITIVE ADVANTAGE OF MANUFACTURING COMPANIES IN SELECTED MUNICIPALITIES OF BATANGAS PROVINCE

Abstract

Purpose- Strategic agility helps food manufacturers detect market, regulatory, and competitive changes, decide quickly, and reconfigure resources. In the Philippines, it is vital due to demand volatility, supply chain risks, and shifting consumer preferences. Firms with strong HRM strategies and high agility can convert national advantages into sustainable competitive advantage. However, studies on internal capabilities driving this advantage remain scarce, especially on how HRM strategies affect competitiveness through strategic agility in food manufacturing. This study fills that gap by examining strategic agility’s mediating role between HRM strategies and sustainable competitive advantage among Batangas food manufacturers. Methodology- A quantitative explanatory design with mediation analysis was used to examine strategic agility’s indirect effect between HRM strategies and sustainable competitive advantage. A survey assessed strategic agility’s mediating role, with data analyzed using Jamovi. Respondents included 189 owners, HR managers, or supervisors from 371 registered food manufacturing firms in Calaca, Tanauan, Batangas City, Lipa, and Sto. Tomas, based on Business Permit and Licensing Office records. The design tested how HRM strategies influence competitiveness directly and indirectly through strategic agility among Batangas food manufacturers. Findings- Most firms were micro- and small-scale sole proprietorships with centralized decisions and limited formal HR systems, constraining HRM practices and strategic agility. Sustainable competitive advantage was high in efficiency and quality, but customer responsiveness relied on relationships, not data, while innovation was weakest due to low tech and R&D investment. HRM strategies were slightly high to effective, with training and development strongest; recruitment, appraisal, compensation, career planning, and work-life quality were limited by finances and structure. Strategic agility was moderate: strong market awareness but weak decision-making and execution. Competitiveness differed by form, size, and age, favoring larger, older firms. HRM influenced competitiveness directly and indirectly through strategic agility, which partially mediated the link. An enhanced HR program was proposed to formalize policies, strengthen training, build agile leadership, and foster partnerships. Conclusion- The study concludes that Batangas food manufacturers are mostly micro- and small-scale firms with centralized, informal structures that shape HR practices and limit strategic agility. Their advantage comes from efficiency and quality, but low innovation threatens long-term competitiveness due to limited tech investment. HR strategies are vital, yet informal recruitment, inconsistent appraisal, poor compensation, and limited career growth reduce effectiveness. Firms show moderate strategic agility via market awareness but struggle with fast decisions and execution because of resource limits and centralization. HR strategies strengthen competitiveness directly and through strategic agility, which partially mediates the HRM-competitiveness link. Organizational maturity improves HR formality and advantage. Sustainable competitiveness requires integrating formal HR practices and strategic agility to build resilience and growth.

Keywords

• Strategic agility
• human resource strategies
• sustainable competitive advantage
• appraisal
• reconfigure resources

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