Strategic Agility, Employee Resilience, and Self-Efficacy as Micro Foundation of Product Development Performance: Fixed Mobile Convergence Business Transformation Context in Indonesia

Abstract

The global telecommunications industry is experiencing structural revenue stagnation, with a projected CAGR of only 2.9% through 2028, forcing operators to pursue strategic transformation through Fixed Mobile Convergence (FMC). Nevertheless, scholarly understanding of how organizational strategic agility translates into FMC product development performance (PDP) through individual-level microfoundations, particularly employee resilience and self-efficacy, remains limited in post-merger environments. To address this gap, this study investigates the relationships among organizational strategic agility (OSA), employee resilience, self-efficacy, and FMC Product Development Performance (PDP) within the context of the 2023 merger between Telco Company's fixed broadband and mobile business units, one of the largest FMC integration initiatives in Indonesia's telecommunications industry. This study employed a quantitative cross-sectional design using purposive sampling, involving 170 employees directly engaged in FMC operations across the Marketing, IT, and Planning & Transformation Directorates (100 transferred employees from the Holding company and 70 existing Telco Company employees). Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that OSA has a positive and significant direct effect on FMC PDP (β = 0.274, p < 0.001). In addition, employee resilience (indirect β = 0.092, p = 0.001) and self-efficacy (indirect β = 0.071, p = 0.011) partially mediate the relationship between OSA and PDP. Collectively, these variables explain 43.2% of the variance in FMC PDP (R² = 0.432). Furthermore, the findings reveal a dual-culture workforce pattern, in which transferred employees demonstrate higher resilience (M = 3.63) while existing employees exhibit higher self-efficacy (M = 3.54). This complementary psychological capability profile provides actionable insights for post-merger human capital integration and workforce development strategies. By extending the Dynamic Capabilities View and Psychological Capital perspectives into an FMC post-merger context, this study contributes a microfoundational explanation of how organizational agility is transformed into product development performance during large-scale telecommunications convergence initiatives.