Firms make large investments in enterprise IT systems expecting positive impacts to their supply chain operations. Yet, though systems facilitate the responsibilities of multiple stakeholders, their success is not determined merely by its adoption. This study shows how management innovation is developed to affect operational agility of a firm. The model suggests that operational agility in supply chain requires constructing dependency structures and implementing coordinating mechanisms, to develop management innovation processes. In addition, the study prescribes a set of actionable guidelines to help managers classify and manage innovative firm management practices.