The Role of Absorptive Capacity and Technological Innovation Capabilities in IT Project Success: Does Strategic Agility Matter?

Abstract

This study aims to explore the role of absorptive capacity (AC) on project success (PS) through the mediating roles of technological innovation capabilities (TIC) and the moderating role of strategic agility (SA). A convenience sampling technique was used to collect data from 225 respondents working as project managers in small- to medium-sized Pakistani software companies in Islamabad and Rawalpindi. Data was collected from and distributed on several online channels (Gmail, LinkedIn, WhatsApp). Smart PLS-SEM, version 4, was used for data analysis. The results obtained suggested that AC has a direct positive effect on PS and an indirect impact through the mediating role of TIC. However, the moderating role of SA showed an insignificant impact on the relationship between TIC and PS. The current study's findings highlight the importance of various factors to achieve sustainable performance for small-medium software enterprises, which are the backbone of developing economies in today's highly turbulent economic conditions.