How information technology capability influences organizational agility: empirical evidences from Indian banking industry
Journal of Indian Business Research
ISSN: 1755-4195
Article publication date: 4 October 2021
Issue publication date: 16 November 2021
Abstract
Purpose
The purpose of this paper is to highlight a precise investigation of the relationship between information technology (IT) capability and organizational agility along with the moderating impact of environmental factors on this association.
Design/methodology/approach
Pre-tested structured questionnaires were administered during a matched-pair field survey to collect primary responses from 300 business and IT personnel working in various public and privately owned banking groups functioning in India. The structural equation modeling approach has been used for data analysis.
Findings
The two-folded research findings are first, IT capability enables organizational agility (studied as business process and market responsive agility), while IT capability has more effect on market responsive agility. Second, the environmental factors (studied as environmental diversity and hostility) possess a significant effect on the IT-agility relationship and, thereby, suggest that a more diverse and less hostile environment is required for the firms to build up superior IT capability for realizing enhanced agility.
Originality/value
The authors have studied IT capability as a first-order factor, organizational agility and environmental factors as second-order factors and by meticulously examining their critical dimensions this study greatly contributes to the existing IT-agility literature. The derived inferences provide various implications for the bank and IT managers to emphasize on superior IT capability for generating enhanced organizational agility.
Keywords
Acknowledgements
Authors sincerely acknowledge Indian Council of Social Science and Research (ICSSR), New Delhi, India to grant funding for this research. Authors are also grateful to National Institute of Technology (NIT) Rourkela, India to provide them with required infrastructure to conduct this work.
Citation
Panda, S. and Rath, S.K. (2021), "How information technology capability influences organizational agility: empirical evidences from Indian banking industry", Journal of Indian Business Research, Vol. 13 No. 4, pp. 564-585. https://doi.org/10.1108/JIBR-11-2020-0364
Publisher
:Emerald Publishing Limited
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