Enterprise Systems and Organizational Issues in IS


Firm agility is quickly becoming an essential capability for companies to effectively compete in hypercompetitiveenvironments. At the same time, firms are using applications that enable close integration coupled with an increased ability toreconfigure processes. Such applications should manifest a balance between integration and reconfigurability. This is theconcept of applications ambidexterity. The IS literature has selectively focused on either integration or reconfigurability. Byfocusing on only one characteristic we have been unable to understand the IT - agility relation. Research suggests thatintegration and reconfigurability alone cannot explain the true nature of the IT - agility relation. This conceptual paperattempts to understand the complementary effects of integration and reconfigurability on firm agility. It contributes to theliterature by theorizing the role of IT application ambidexterity on firm agility through the mediating variables of knowledgeexploration, knowledge exploitation and process adaptability.