To reveal how failure-tolerant cultures affect manufacturing firms'organizational agility.Drawing on organizational design theory,this study investigates the antecedents of opportunity identification,the contingency effects of policy support,and the mechanism between failure-tolerant cultures and organizational agility.Survey data from 206 manufacturing firms in Guangdong province shows that failure-tolerant cultures have positive effects on opportunity identification.Policy supports positively moderate failure-tolerant cultures effects on opportunity identification.Opportunity identification has positive effects on both operational adjustment and market capitalizing agility.Opportunity identification mediates the effects of failure-tolerant cultures on both operational adjustment and market capitalizing agility.Consequently,manufacturing firms should strive to cultivate failure-tolerant cultures,keep an eye on policy support in their dominant industry,and make full use of the positive effects of opportunity identification on both operational adjustment and market capitalization agility.
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