IT and firm agility: An electronic integration perspective

Abstract

Firms evolving in increasingly turbulent environments need to respond to market threats and opportunities with speed. At the same time, firms implement numerous information technologies (IT) in the hope of streamlining processes and providing managers with unfettered access to information from both within and outside the firm. While research shows how agility and IT contribute to firm performance, the relationship between these two constructs remains relatively unexplored. Using an electronic integration perspective, we develop a framework that addresses this issue. The framework suggests that IT applications affect the two components of agility (sensing and responding) through two types of integration (internal and external). The framework also explains the mediating roles of knowledge exploration, knowledge exploitation, and process coupling. Four propositions are developed and illustrated with different examples. Avenues for future research are developed.