The role of supply chain agility (SCA) and its effect on supply chain performance (SCP) is poorly recognised in the operations management literature. As the nature of supply chain is inclining towards high flexibility, the SCA becomes value enhancing, indicating its effective nature. This paper proposes a model linking supply chain orientation (SCO) and SCA with SCP. Cross sectional survey of 122 Indian manufacturers was carried out. The result indicates that SCO and SCA are directly and significantly related with SCP. The main contribution of the study is uncovering the mediation effect of SCA on the SCO–SCP link. The theoretical as well as managerial implications along with scope for future research and limitations of the study are also discussed.