An explanatory and predictive model for organizational agility

Organizational agility (OA), as a key dynamic capability, is a firm's ability to enable sensing environmental changes and responding efficiently and effectively to them. This study explores this topic further by analyzing the part that the information systems capabilities (ISC) variable plays as an antecedent of OA, and absorptive capacity (AC) as a mediator construct. Furthermore, this study tests the negative moderating role of hierarchy culture (HC) in the AC–OA link. Using partial least squares (PLS) and the PROCESS macro, this work finds evidence of these relations proposed, and the existence of a conditional mediating situation that HC generates. In addition, the main model with direct effects (ISC and AC as predictors) achieves an appropriate level of predictive validity for the key endogenous construct (OA).

[1]  J. Cegarra-Navarro,et al.  The Effect of Absorptive Capacity on Innovativeness: Context and Information Systems Capability as Catalysts , 2010 .

[2]  M. Wade,et al.  Review: the resource-based view and information systems research: review, extension, and suggestions for future research , 2004 .

[3]  Paul P. Tallon,et al.  Competing Perspectives on the Link Between Strategic Information Technology Alignment and Organizational Agility: Insights from a Mediation Model , 2011, MIS Q..

[4]  Jos van Hillegersberg,et al.  Change factors requiring agility and implications for IT , 2006, Eur. J. Inf. Syst..

[5]  Ying Lu,et al.  Understanding the Link Between Information Technology Capability and Organizational Agility: An Empirical Examination , 2011, MIS Q..

[6]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[7]  Alemayehu Molla,et al.  Enterprise Systems and Organizational Agility: A Review of the Literature and Conceptual Framework , 2012, Commun. Assoc. Inf. Syst..

[8]  Omar El Sawy,et al.  Absorptive Capacity Configurations in Supply Chains: Gearing for Partner-Enabled Market Knowledge Creation , 2005, MIS Q..

[9]  Randy V. Bradley,et al.  Enterprise architecture, IT effectiveness and the mediating role of IT alignment in US hospitals , 2012, Inf. Syst. J..

[10]  Wynne W. Chin,et al.  A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic - Mail Emotion/Adoption Study , 2003, Inf. Syst. Res..

[11]  Charles C. Ragin,et al.  Redesigning social inquiry , 2008 .

[12]  A. Hayes Beyond Baron and Kenny: Statistical Mediation Analysis in the New Millennium , 2009 .

[13]  S. Zahra,et al.  Absorptive Capacity: A Review, Reconceptualization, and Extension , 2002 .

[14]  Marko Sarstedt,et al.  Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research , 2014 .

[15]  Zhongsheng Hua,et al.  The Impact of IT Capabilities on Firm Performance: The Mediating Roles of Absorptive Capacity and Supply Chain Agility , 2013, Decis. Support Syst..

[16]  Jaap Paauwe,et al.  HRM in turbulent times: how to achieve organizational agility? , 2012 .

[17]  Eric Overby,et al.  Enterprise agility and the enabling role of information technology , 2006, Eur. J. Inf. Syst..

[18]  P. Bentler,et al.  Cutoff criteria for fit indexes in covariance structure analysis : Conventional criteria versus new alternatives , 1999 .

[19]  A. Hayes Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach , 2013 .

[20]  Galit Shmueli,et al.  Predictive Analytics in Information Systems Research , 2010, MIS Q..

[21]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[22]  Hsian-Ming Liu,et al.  Boosting firm performance via enterprise agility and network structure , 2012 .

[23]  Dorothy E. Leidner,et al.  An Empirical Examination of the Influence of Organizational Culture on Knowledge Management Practices , 2005, J. Manag. Inf. Syst..

[24]  Peng Xu,et al.  Boosting Enterprise Agility via IT Knowledge Management Capabilities , 2006, Proceedings of the 39th Annual Hawaii International Conference on System Sciences (HICSS'06).

[25]  Thiagarajan Ravichandran,et al.  Effect of Information Systems Resources and Capabilities on Firm Performance: A Resource-Based Perspective , 2005, J. Manag. Inf. Syst..

[26]  Manuel J. Sánchez-Franco,et al.  Variance-Based Structural Equation Modeling: Guidelines for Using Partial Least Squares in Information Systems Research , 2012 .

[27]  K. Cameron,et al.  Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework , 1999 .

[28]  Detmar W. Straub,et al.  Common Beliefs and Reality About Partial Least Squares: Comments on Rönkkö & Evermann (2013) , 2014 .

[29]  Raymond F. Zammuto,et al.  Managerial ideologies, organization culture and the outcomes of innovation: a competing values perspective , 2000 .

[30]  Shirley Gregor,et al.  The Nature of Theory in Information Systems , 2006, MIS Q..

[31]  Peng Xu,et al.  A framework for implementing business agility through knowledge management systems , 2005, Seventh IEEE International Conference on E-Commerce Technology Workshops.

[32]  José L. Roldán,et al.  Prediction-oriented modeling in business research by means of PLS path modeling: Introduction to a JBR special section , 2016 .

[33]  A. Hayes An Index and Test of Linear Moderated Mediation , 2015, Multivariate behavioral research.

[34]  Detmar W. Straub,et al.  Common Beliefs and Reality About PLS , 2014 .

[35]  Anandhi S. Bharadwaj,et al.  A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation , 2000, MIS Q..

[36]  A. Woodside Moving beyond multiple regression analysis to algorithms: Calling for adoption of a paradigm shift from symmetric to asymmetric thinking in data analysis and crafting theory , 2013 .

[37]  Jin-Xing Hao,et al.  Bridging Role Of Absorptive Capacity For Knowledge Management Systems Success , 2011, PACIS.

[38]  M. Sarstedt,et al.  A new criterion for assessing discriminant validity in variance-based structural equation modeling , 2015 .

[39]  Waldemar Karwowski,et al.  A review of enterprise agility: Concepts, frameworks, and attributes , 2007 .

[40]  Mohamed A. Youssef,et al.  The human side of organizational agility , 2003, Ind. Manag. Data Syst..

[41]  Shimon Y. Nof,et al.  Agility of networked enterprises—parallelism, error recovery and conflict resolution , 2000 .

[42]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[43]  Audrey Charbonnier-Voirin,et al.  The development and partial testing of the psychometric properties of a measurement scale of organizational agility , 2011 .

[44]  Yi Wang,et al.  IT capability and organizational performance: the roles of business process agility and environmental factors , 2014, Eur. J. Inf. Syst..

[45]  Ryan T. Wright,et al.  Operationalizing Multidimensional Constructs in Structural Equation Modeling: Recommendations for IS Research , 2012, Commun. Assoc. Inf. Syst..

[46]  Kevin C. Desouza,et al.  Opening up the Black-Box: Information Systems and Organizational Agility , 2006, AMCIS.

[47]  Varun Grover,et al.  Shaping Agility through Digital Options: Reconceptualizing the Role of Information Technology in Contemporary Firms , 2003, MIS Q..

[48]  Detmar W. Straub,et al.  Validation Guidelines for IS Positivist Research , 2004, Commun. Assoc. Inf. Syst..

[49]  Justin J. P. Jansen,et al.  Managing Potential and Realized Absorptive Capacity: How Do Organizational Antecedents Matter? , 2005 .

[50]  Robert M. Davison,et al.  Developing Organizational Agility through IT and Supply Chain Capability , 2012, J. Glob. Inf. Manag..

[51]  Arun Rai,et al.  Predictive Validity and Formative Measurement in Structural Equation Modeling: Embracing Practical Relevance , 2013, ICIS.

[52]  Peer C. Fiss Building Better Causal Theories: A Fuzzy Set Approach to Typologies in Organization Research , 2011 .