Understanding the relationship between IT capabilities and operational agility: a multi-method approach

Abstract

PurposeThe system of information technology (IT)-oriented resources and processes that organizations need to develop to achieve operational agility remains unclear. The study research seeks to extend existing competency literature by incorporating the unique contextual nuances of the relationship between IT capabilities and operational agility.Design/methodology/approachUsing a multi-method approach, this paper presents a theoretical framework of IT-enabled operations strategy that conceptualizes the role of IT capability in leveraging resources and processes for operational agility. Drawing on operations and information systems research, the authors advance that IT enables operational agility through two dimensions. From the perspective of a resource-based operations strategy, the authors explore the role of IT in resource-leveraging activities by investigating the nonlinear relationship between IT infrastructure and IT reconfiguration. From the perspective of a process-oriented operations strategy, the authors explore the role of IT in process-enhancing activities by investigating the nonlinear relationship between IT coordination and IT integration.FindingsThe study results, based on a sample of 113 organizations in Europe, Asia and North America, show that the interaction between IT infrastructure and IT reconfiguration positively influences operational agility, hence showing complementarity between the two constructs, while the interaction between IT coordination and IT integration negatively affects operational agility, hence indicating substitutability between the two constructs. A series of 62 interviews and a case study of Carrefour were further conducted to validate the field survey's results and to provide a finer grained explanation of the research model and quantitative findings.Originality/valueThe study findings offer an alternative explanation of the inconsistent relationship between IT capability and operational agility.