Agile leadership and job satisfaction: Mediating role of job redesign within the framework of dynamic capability theory

Abstract

In today’s dynamic and highly competitive business environment, organizations face constant pressure to adapt quickly to changing market conditions, technological advancements, and evolving customer expectations. Agile leadership has emerged as a critical capability for driving organizational flexibility and enhancing employee outcomes. Despite growing interest in this leadership style, the mechanisms through which agile leadership influences job satisfaction remain underexplored. Grounded in Dynamic Capability Theory (DCT), this study investigates both the direct effect of agile leadership on job satisfaction and the mediating role of job redesign. A cross-sectional survey was administered to 167 employees of First MicroFinance Bank, Afghanistan, using validated measurement scales for agile leadership, job redesign, and job satisfaction. Data were analyzed using Structural Equation Modeling (SEM) with SmartPLS (version 3.3.0) to test the hypothesized relationships. The results reveal that agile leadership significantly enhances job satisfaction, demonstrating both a direct positive effect and an indirect positive effect through job redesign. Job redesign also emerged as a strong predictor of job satisfaction, highlighting its strategic importance for aligning work structures with employee needs and organizational goals. Mediation analysis confirmed that job redesign partially mediates the relationship between agile leadership and job satisfaction. These findings provide important theoretical insights into the dynamic capability perspective and offer practical implications for managers seeking to strengthen employee well-being and organizational outcomes through agile leadership and thoughtful job redesign strategies.