Enterprise System-Enabled Organizational Agility Capability: A Construct And Measurement Instrument

In the turbulent and highly competitive environment, organizational agility (OA that is the ability of organizations to quickly sense and respond to environmental changes, is an important determinant of organization success. Pervasiveness of enterprise system (ES) implementation (e.g. CRM, ERP, SCM, etc.) which aims to integrate information resources in particular and organizational resources in general has raised the questions on its link to organizational agility. Using insights from dynamic capability theory, this paper refers to the capabilities that organizations can leverage from their ES in supporting to organizational agility as the ES-enabled Organizational Agility (ESEOA), and develops a set of variables to measure this construct. The measures were tested for content and construct validity and reliability based on data from 180 medium and large Australian and New Zealand organizations that have implemented and used ES. The research is significant to provide researchers the metrics as part of nomological network of factors to explain the post-implementation impacts of ES on organizational performance. It at the same time provides practitioners feasible tools in analyzing the ES capabilities in their organizations.