Impact of IT capabilities on supply chain capabilities and organizational agility: a dynamic capability view
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Impact of IT capabilities on supply chain capabilities and organizational agility: a dynamic capability view Muhammad Irfan 1 & Mingzheng Wang 2 & Naeem Akhtar 3 Received: 3 January 2019 / Revised: 10 July 2019 / Accepted: 16 July 2019 # Springer Science+Business Media, LLC, part of Springer Nature 2019
Abstract 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. Keywords Supply chain capabilities . Organizational agility . IT capabilities . Dynamic capability view
1 Introduction Firms invest in enhancing their capabilities to deliver in unpredictable business environments (Chae et al. 2014; Yu et al. 2018). Organizational agility refers to a firm’s ability to confront turbulence and succeed by exploiting business opportunities (Lu and Ramamurthy 2011; Mikalef and Pateli 2017), and globalization triggers business organizations to transform how they do business by using IT-enabled supply chain operations. There is an extensive body of literature that places information technology (IT) as a lower-order dynamic capability and an antecedent to higher-order capabilities like supply chain integration (Huo et al. 2014a; Liu et al. 2013; Wu et al. 2006)
* Mingzheng Wang [email protected] Muhammad Irfan [email protected]; [email protected] Naeem Akhtar [email protected] 1
Faculty of Management and Economics, Dalian University of Technology, Dalian 116024, People’s Republic of China
2
School of Management, Zhejiang University, Hangzhou 310058, People’s Republic of China
3
Department of Marketing, School of Business, University of International Business and Economics, Beijing 100029, People’s Republic of China
and organizational agility (DeGroote and Marx 2013; Lowry and Wilson 2016; Overby et al. 2006; Swafford et al. 2008). However, the literature has yet to define the hierarchal relationship between dynamic capabilities and supply chain capabilities from the perspective of organizational capabilities. In essence, IT transforms data into real-time information that can provide insights into supply chain activities (Davenport 2006), so firms capitalize on their IT resources to figure out market trends, minimize operational risks, and increase their agility (Tan et al. 2015). Employing the resource-based view (RBV), the literature posits that IT is a resource capability that can have
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