Abstract

The information systems literature elaborates on how firms develop organizational agility based on organizational capabilities to sense and respond to fast changing environments. However, the underlying mechanism of how companies and their CEO understand and implement digital technologies to foster organizational agility is lacking. The technological frame concept provides an impetus to explain the process by which CEO's sensemaking of digital technologies influences organizational agility. Our paper draws on the individual-level perspective of the technological frame concept and suggests a mediating role of digital business capabilities, composed of digital strategy, digital integration, and digital control. Our quantitative research design is based on 386 German CEOs which confirms that CEO's technological frame influences organizational agility through digital business capabilities. Thereby, we expand the concept of technological frame on the individual-level and contribute to the IS literature by revealing the mechanism of how CEO's sensemaking influence organizational agility.

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