Abstract

The changes in the business environment due to digital technologies and an increasing pace of innovation, have to be reflected in the organizational design of firms. In particular, agility has been put forward as an approach to cope with upcoming changes and to ensure organizational effectiveness in times of digitalization. We conceptualize agility as two types – detecting and re-acting agility. In this paper, we analyze the organizational design and identify determinants for these two types of agility within the design. In our empirical study, we identified agility as a determinant of organizational effectiveness and discuss the relevance of agility in new forms of organizing in today’s business environment. Our research is based on a quantitative study in the professional services industry where we conducted a survey with 217 respondents. The findings of our study carry theoretical contributions regarding the determinants of agility in the organizational design and the further delineation of detecting and reacting agility. Both of them carry essential importance for the design of digital organizations. Building on that, we derive managerial implications that yield the need to update the organizational design. In addition, we determine new forms of organizing and anchor agility as a management objective for digital organizations.

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