Competitive pressures are forcing organizations to be agile and flexible. Response to changing environmental conditions is an important factor in determining corporate performance. Organizational flexibility is in turn closely related to the management of information systems. Organizations with flexible IS functions are in a position to be more responsive and take advantage of changes in both their internal and external environments. Conversely, inflexibility in IS can inhibit organizational growth and put a company in a competitive disadvantage. This paper argues that IS flexibility is a multidimensional concept. Grounded theory methodology is used to empirically derive a taxonomy of several types of flexibility and flexibility management strategies.