Navigating Deep Uncertainty: The Role of Organizational Agility in Managing Public Sector Crises Under Resource Scarcity: Evidence From Palestine

Abstract

This study addresses a critical gap in the public sector by examining the relationship between organisational agility (OA) and crisis management (CM) within Palestine's public service sector. It addresses a theoretical void by examining how dynamic capabilities operate under conditions of extreme volatility and institutional constraints. A quantitative, cross‐sectional design was employed, utilising a stratified random sample of 261 employees across five key ministries. Data were analysed using multiple regression to explore the associations between agility dimensions and crisis phases. The empirical analysis reveals that OA dimensions exert varying degrees of influence on CM phases. Decision‐making agility emerged as the most significant determinant, demonstrating a comprehensive impact across all crisis stages and explaining 37.3% of the variance in effective CM. Similarly, acting agility was found to be a vital driver for all dimensions of the crisis lifecycle, from discovery to learning. Conversely, sensing agility functions primarily as a specialised pre‐crisis capability; while it significantly facilitates early discovery and preparation, its influence does not extend to the containment, recovery or learning phases. This study examined the contemporary framework of OA and its influence on all stages of CM in the public sector in developing countries. It offers essential strategies for public service organisations to enhance their capacity to manage crises effectively and ensure the continuity of vital services, such as health and education.