Journal of Strategic Management Studies

Journal of Strategic Management Studies

Investigating the effect of strategic thinking on organizational dynamics of Iranian oil and gas companies with organizational agility

Document Type : Research

Authors
Rahim Zare 1
Alireza Rostaminia 2
Rouzbeh Darvishi 2
1 Assistant Professor, Faculty of Business and Accounting, Allameh Tabataba'i University, Tehran, Iran
2 M.A graduated, Faculty of Business and Accounting, Allameh Tabataba'i University, Tehran, Iran
10.22034/smsj.2025.499895.2106
Abstract
Introduction
The contemporary business landscape, particularly within organizational contexts, is characterized by rapid and complex changes affecting all dimensions of operations—from internal processes to external environmental factors. In such conditions, organizations require high levels of flexibility and adaptability to survive and maintain competitiveness. This necessity is especially critical in Iran's oil and gas industry, which plays a vital role in the national economy while facing international sanctions and turbulent market dynamics. Companies in this sector must continuously enhance their strategic decision-making processes and adaptive capabilities to improve performance under competitive pressures. A key factor enabling organizations to respond effectively to environmental changes is the development of dynamic capabilities. These capabilities empower firms to integrate, transform, and update internal and external competencies in alignment with shifting conditions. Dynamic capabilities facilitate continuous redesign and improvement of resources, helping organizations maintain effectiveness in volatile environments. Strategic thinking represents a profound insight into current realities and timely exploitation of opportunities. It enables managers to accurately interpret market conditions, devise innovative solutions, and respond adeptly to changes. This cognitive approach accelerates organizational learning and fosters creativity in value creation. Historically rooted in military strategy, strategic thinking provides a shared framework for analyzing strategic issues. In modern organizations, it complements traditional strategic planning by emphasizing adaptability and future orientation. Organizational agility, as a dynamic capability, allows firms to reconfigure resources swiftly. It balances cost, time, quality, and scope while prioritizing speed and innovation. Agility also facilitates internationalization by converting explicit knowledge into experiential learning, enabling firms to identify optimal market positions rapidly.
Methodology
This applied research adopts a descriptive-survey methodology to examine the effect of strategic thinking on organizational dynamism, with organizational agility as a mediator. The study population comprises board members of 38 Iranian oil and gas companies (191 individuals), with a sample of 115 respondents selected randomly. Data collection utilized standardized questionnaires: a 21-item strategic thinking scale (Liedtka, 1998), 18-item organizational agility scale (Zhang & Sharifi, 2000), and 7-item organizational dynamism scale (Jalali, 2021). All instruments employed 5-point Likert scales. Reliability was confirmed via Cronbach’s alpha, while confirmatory factor analysis in SmartPLS verified construct validity. Due to non-normal data distribution, partial least squares structural equation modeling (PLS-SEM) was used for hypothesis testing.
Results and Discussion
The findings of this study demonstrate that strategic thinking has a significant positive impact on organizational dynamism in Iranian oil companies. This indicates that managers who employ strategic thinking are better able to align organizational resources with environmental changes and develop new capabilities to address challenges. Furthermore, the results confirm that strategic thinking also indirectly influences organizational dynamism through enhancing organizational agility. In other words, organizational agility serves as a key mechanism that improves an organization's ability to respond quickly to changes, thereby strengthening organizational dynamism. These results align with previous studies that have identified strategic thinking and organizational agility as critical success factors in dynamic and competitive environments. However, by focusing on Iran's oil and gas industry - which faces sanctions and environmental instability - this research provides deeper insights into these relationships. The study particularly shows that even in challenging conditions, organizations can develop the necessary dynamism for survival and growth by cultivating strategic thinking and enhancing agility. A notable aspect of this research is its emphasis on organizational agility as a mediating variable. This finding suggests that strategic thinking alone is insufficient for achieving organizational dynamism; organizations must also be able to implement this thinking through operational mechanisms like agility. Essentially, organizational agility serves as the bridge that translates strategic thinking into tangible actions and organizational outcomes. The study also reveals that the relationship between strategic thinking and organizational dynamism is not linear but rather mediated through multiple dimensions of agility. This complex interplay highlights the need for organizations to develop comprehensive strategies that address both cognitive (strategic thinking) and operational (agility) aspects simultaneously. The Iranian oil and gas industry's unique challenges, including international sanctions and market volatility, make this integrated approach particularly relevant. In practice, these findings suggest that oil and gas companies should focus on developing strategic thinking capabilities at all managerial levels while simultaneously investing in agile infrastructure and processes. The research indicates that organizations that successfully balance these elements are better positioned to navigate uncertainty and maintain competitiveness in turbulent markets.
Conclusion
This study establishes that strategic thinking drives organizational dynamism both directly and through agility in high-risk industries. For Iranian oil/gas firms, investing in strategic leadership development and agile infrastructure is imperative to mitigate external shocks. Future research should explore cultural moderators and longitudinal capability evolution. Practically, organizations should institutionalize strategic thinking through crisis simulation training and cross-functional team rotations, while policymakers could incentivize digital transformation to bolster agility. Ultimately, in turbulent markets, strategic thinking fuels agility, and agility sustains dynamism—a cyclical imperative for competitive survival.
 
Keywords
Strategic thinking
Organizational dynamics
Oganizational agility
Iranian oil and gas companies

Subjects

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  • Receive Date 14 January 2025
  • Revise Date 17 March 2025
  • Accept Date 10 May 2025