Information Technology Competency and Organizational Agility: Roles of Absorptive Capacity and Information Intensity

Organizational agility has become increasingly essential for contemporary organizations to survive and compete in this information age. Although scholars have discussed the possible effects of information technology (IT) competency on organizational agility, existing knowledge on IT–agility relationship is limited. An integration analysis of internal capability and external environment is lacking. This study investigates the mediating role of absorptive capacity and the moderating role of information intensity in IT‒agility relationship to fill the research gap. Empirical evidence from the data of 165 organizations in China shows that the effects of absorptive capacity are multifaceted and nuanced. In particular, absorptive capability partially mediates the effects of IT knowledge and IT operations on market capitalizing agility and fully mediates their effects on operational adjustment agility. No mediations are found in IT objects. The results also show that information intensity strengthens the effects of IT operations and objects on absorptive capacity. We then discuss theoretical and practical implications.