Developing Organizational Agility Through IT and Supply Chain Capability

Rui Bi, Robert Davison, Booi Kam, Kosmas Smyrnios

Research output: Book chapter/Published conference paperConference paperpeer-review


Organizations have increasingly invested money on information technology (IT) in order to improve firms' agility. It is generally believed that companies with greater IT investment tend to be more agile to respond to environmental changes. Yet, the issue of whether IT is an enabler or impeder of organizational agility still remain unresolved. Drawing upon the resource-based view theory, the information systems (IS) and supply chain management literature, we develop and test a hypothesized model that integrates IT capability, supply chain capability and organizational agility. We propose that IT capability enables the development of a higher level of IT-based supply chain capability which is embedded within inter-firm processes and in turn enhances organizational agility. Structural equation modeling is employed to test our theoretical conceptualization of 310 Australian fast-growth small-to-medium enterprises across different industrial sectors. The results show that IT capability does contribute to firm agility through enhancing inter-firm supply chain processes such as integration, information sharing and coordination. This research highlights the role of IT-enabled intermediated processes and the ways in which IT is used by firms to enhance core business processes.
Original languageEnglish
Title of host publicationPACIS 2012 Proceedings
Subtitle of host publicationIS Innovation in Pacific Asia
Place of PublicationVietnam
PublisherUniversity of Science
Number of pages16
Publication statusPublished - 2012
Event16th Pacific Asia Conference on Information Systems: PACIS 2012 - Caravelle Hotel, Ho Chi Minh City, Viet Nam
Duration: 11 Jul 201215 Jul 2012 (Conference website) (Conference proceedings)


Conference16th Pacific Asia Conference on Information Systems
Abbreviated titleIS Innovation in Pacific Asia
Country/TerritoryViet Nam
CityHo Chi Minh City
OtherThe Pacific Asia Conference on Information Systems (PACIS) is the premier information systems event in the region. Its purpose is to provide a high quality forum for researchers, practitioners, and policy makers to exchange research findings and ideas on adoption of leading information-related technologies and practices.
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