It-enabled strategic-level agility and firm performance: service versus manufacturing industry

This study investigates the organizational value of IT-enabled strategic capabilities in specific industry settings. We propose a theory-based model of positive relationships among IT resources, strategic-level agility, and firm performance. The model also proposes the relative values of the strategic-level agility in service and manufacturing industries. Survey data of medium to large-size enterprises in the United States were used to validate the model. The results indicate that the role of strategic-level agility in leading to firm performance is more significant in manufacturing industry than in service industry. Also, the values of IT resources, i.e., IT infrastructure and IT strategic planning, vary under the different industries. Our findings, although significant, challenge the conventional perspective on the core competence of service and manufacturing industries and thus call for further investigations on the strategic role of IT in the two distinct industries.