Title

IT impacts on operation-level agility in service industries

Abstract

This study examines the relationship between operation-level agility and firm performance in service

industries. The study is augmented by investigating the role of IT resources and competence to achieve

this specific type of agility. As of to date, most of the published literature in this stream of research has

focused on manufacturing industry. This research is an early attempt to examine the strategic value of

IT-enabled operational capabilities in service industry. We propose a theory-based model of the

positive relationships among IT service competence, operation-level agility, and firm performance.

Survey data of medium to large-size enterprises in service industries in the United States were used to

validate the proposed model. The results indicate that operation-level agility is a significant driving

force of firm performance in the service industries and that IT service competence significantly

determines the operation-level agility. The results emphasize that IT-supported operation-level agility

significantly leads to a better performance.

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