Area Farmers Organizations (AFOs) in Malaysia plays a critical role in enhancing the agricultural sector's contribution to the nation’s development. As key facilitators of rural economic growth and agricultural sustainability, AFOs directly influence the national food security plan and income generation of the farming communities. However, many AFOs face challenges in adapting to rapidly changing environments and achieving optimal performance. This conceptual paper examines the relationship between organizational capability and strategic agility as antecedents of AFOs performance. Organizational capability, encompassing environmental scanning capabilities, coordinating capabilities and organizational learning, is hypothesized to influence strategic agility, while strategic agility is posited to have an impact on the performance. This paper adopts a theoretical lens based on the Dynamic Capabilities Theory to propose a conceptual framework linking these constructs to performance. This study is expected to offer practical and managerial implications for enhancing AFOs' strategic agility, decision-making processes, and resource optimization. By providing evidence-based insights, the stakeholders are able to formulate the appropriate policies and design initiatives that can boost the agricultural sector's competitiveness, contributing to national economic goals.
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