Abstract

Organizational agility (OA) has been signalled as a significant business capability to remain competitive in the current dynamic and complex business environment. Although IT capabilities have been identified as an incipient source of OA, there is limited literature on the agility-enabling role of IT ambidexterity (ITA), which is the dual pursuit of IT exploitation and IT exploration. Drawing on the dynamic capability view (DCV) and the IT-enabled agility literature, we examine the relationship between ITA and OA, and propose that organizational change capacity (OCC) mediates the relationship. We test these relationships using partial least squares structural equation modelling (PLS-SEM), with survey data collected from 173 IT professionals. The results suggest that ITA has a direct positive impact on OA and that OCC partially mediates the relationship. The subsequent theoretical arguments and empirical evidence offer insights into the direct and indirect role of ITA in developing organizational dynamic capabilities.

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Paper Number 1545; Track Governance; Complete Paper

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