IT Enabled Organisational Agility
This paper examines the role of information technology (IT) in enabling organisational agility. The authors focus on two IT capabilities, IT exploration and IT exploitation. On the basis of conceptualisation of the capability lifecycle and a hierarchy of dynamic capabilities, the authors establish a theoretical linkage between lower-order capability and higher-order capability, i.e., IT exploration capability to IT exploitation capability to organisational agility. Using the partial least square approach, the authors empirically test the proposed relationships using data from 289 manufacturers in the Pearl River Delta region of Guangdong province, People's Republic of China. Our results suggest the positive effects of IT exploration and exploitation capabilities on customer, operational and partner agilities. In addition, the authors find that IT exploitation capability mediates the relationship between IT exploration capability and organisational agility. On the basis of our findings, implications for theory and practice as well as future research opportunities are discussed.