Abstract:
Corporate agility will encourage companies and economic enterprises to respond quickly
to the dynamics of internal and external changes in the company. This study aims to analyze the
effects of business innovation, CSR implementation, and digital transformation in improving business
agility, with competitive advantage as a mediating variable. This study uses a quantitative approach
with a survey method. Data were obtained through questionnaires distributed to 100 business units
and SMEs as respondents in Makassar City. The results show that competitive advantage, digital
transformation, and business innovation have a significant effect on business agility with a coefficient
of determination of 72.4%, while CSR implementation and digital transformation have a negative
correlation with SME business agility. Digital transformation, CSR implementation, and business
innovation affect competitive advantage with a value of 53.9%, while digital transformation, CSR
implementation, and business innovation affect business agility through corporate image. This
study recommends the use of digital transformation and business innovation for small and medium
enterprises (SMEs) to respond and adapt with business agility in Makassar City, Indonesia.