Impact of IT capabilities on supply chain capabilities and organizational agility: a dynamic capability view

• Published in: Operations management research Vol. 12; no. 3-4; pp. 113 - 128
• Main Authors: Irfan, Muhammad, Wang, Mingzheng, Akhtar, Naeem
• Format: Journal Article
• Language: English
• Published: New York Springer US 01-12-2019; Springer; Springer Nature B.V
• Subjects: Analysis; Assimilation; Business and Management; Coordination; Electronic procurement; Engineering Economics; Industrial and Production Engineering; Infrastructure; Innovation/Technology Management; Logistics; Management; Management information systems; Marketing; Operations Management; Operations research; Operations Research/Decision Theory; Organization; Supply chains; Organizational agility; Dynamic capability view; IT capabilities; Supply chain capabilities
• ISSN: 1936-9735; 1936-9743
• DOI: 10.1007/s12063-019-00142-y

Drawing on the dynamic capability view, this study analyzes the effects of IT capabilities on supply chain capabilities and organizational agility. Based on survey data from 218 firms in Pakistan and employing structural equation modeling, our results reveal that the IT capabilities of IT infrastructure and IT assimilation influence supply chain capabilities of information integration and operational coordination, and that these supply chain capabilities affect organizational agility. In addition to the direct effects, IT infrastructure has an indirect effect on supply chain capabilities through IT assimilation, and information integration has an indirect effect on organizational agility through operational coordination. Theoretical and managerial implications are discussed.