The Role of Strategic Control Levers on Organizational Project Performance: The Mediating Effect of Strategic Agility
Keywords:
Strategic control, belief systems, organizational project performance, boundary systems, diagnostic control, interactive control, strategic agilityAbstract
This study aimed to investigate how strategic control levers—belief systems, boundary systems, diagnostic control systems, and interactive control systems—affect the performance of organizational projects, emphasizing the mediating role of strategic agility in balancing innovation, adaptability, and operational stability. This applied research followed a descriptive–correlational design and was conducted as a field study among employees of Bank Sepah branches in Khorasan Razavi Province. The statistical population consisted of 2,400 staff members, from which a sample of 400 was selected using Morgan’s table and random sampling to account for potential non-responses; 340 valid questionnaires were analyzed. A structured survey measured strategic control levers as independent variables, strategic agility as the mediator, and organizational project performance as the dependent variable. Data reliability and validity were ensured through composite reliability, convergent and discriminant validity checks, while structural equation modeling (SEM) with SMART PLS software was applied to test the hypothesized relationships and mediating effects using bootstrapping and determination coefficients (R²). The analysis confirmed that strategic control levers have a significant and positive impact on organizational project performance. Specifically, belief systems and interactive controls were positively associated with opportunity exploration and adaptability, while boundary and diagnostic controls contributed to focus and alignment. Strategic agility itself showed a strong positive and direct effect on performance and mediated the relationship between the control levers and project outcomes. This mediation indicated that organizations leveraging a balanced mix of controls foster responsiveness to environmental change, reduce vulnerability to disruption, and support sustained innovation while maintaining operational effectiveness. The study highlights that combining different strategic control levers can create the dynamic tension necessary for both control and flexibility, enabling organizations to remain competitive and resilient. Strategic agility acts as a critical capability linking managerial control systems to superior project outcomes in volatile environments.
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Copyright (c) 2025 Seyyed Mohammad Bavandi Sani, Hossein Rahman Seresht (Author)
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