Organizational agility
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What is Organizational agility?

Organizational agility is often understood as a firm’s ability to detect and respond to opportunities, threats and changes [1].

This may include:

  • the ability to assess and respond to customer needs
  • the capacity to streamline internal processes and operations
  • the capacity to identify and enter new markets and redefine the scope of its business
  • the capacity to enter cooperative relationships
  • the capacity to leverage human and information-based resources
  • the ability to access, adopt and take advantage of new technologies and systems

Why is Organizational agility important?

Several studies show that firm performance is positively related with organizational agility [e.g. 2], and extant research has found that agility can be enabled or enhanced by use of ICT. In a review article on this topic, Tallon et al. [1] discuss technological, behavioral, organizational, structural, and environmental enablers of organizational agility.

However, researchers have also noted that ICT may hinder and sometimes impede organizational agility [e.g. 3]. Organizations may be constrained by inflexible ICT-systems, rigid architectures, or disparate technology silos so much so that ICT becomes a disabler for agility [4].

The relationship between ICT and organizational agility therefore represents a critical managerial issue and should be a key organizational concern.



Practical advice

A summary of advice based on a selection of research articles is given below (with references and links to internal article reviews where available):

IT investments:

  • An aggressive IT investment strategy - i.e. seeking first mover advantages by investing in emerging technologies - may increase the likelihood of organizations to develop flexible IT infrastructures and digitalize business processes [2].
  • Keeping current and experiment with new IT is important [5].
  • Pushing IT investment decisions down the organizational hierarchy could increase process agility [6].

IS planning:

  • Senior management and business units should be involved in IS planning, and comprehensive planning methodologies should be applied [2].
  • Integration of business strategic planning and IT plans is important [5].

Internal processes in IS department:

  • Ensuring flexibility and adaptability of routines and processes in order to meet changing IT requirements of the organization is important [2,5].

IT-business interaction:

  • IT managers and business executives should interact closely to develop a clear vision regarding how IT contributes to business value [5] and ensure that IT resources support core competences of the firm [7]. The significance of informal communication (i.e. social alignment mechanisms) between business and IT executives is highlighted in this regard [8].
  • Streamlining processes for developing and/or purchasing IT resources that generate strategic benefit, as well as discontinuance of IT applications that no longer generate value, can enable process agility [6].  

References / sources

  1. Information technology and the search for organizational agility: A systematic review with future research possibilities.
    Tallon, P.P., Queiroz, M., Coltman, T. & Sharma, R. (2019). The Journal of Strategic Information Systems, 28(2). 
  2. Exploring the relationships between IT competence, innovation capacity and organizational agilityLink to article review
    Ravichandran, T. (2018). The Journal of Strategic Information Systems, 27(1).
  3. Enterprise agility and the enabling role of information technology.
    Overby, E., Bharadwaj, A. & Sambamurthy, V. (2006). European Journal of Information Systems, 15(2). 
  4. Change factors requiring agility and implications for IT.
    van Oosterhout, M., Waarts, E. & van Hillegersberg, J. (2006). European Journal of Information Systems, 15(2).
  5. Understanding the link between information technology capability and organizational agility: An empirical examinationLink to article review
    Lu, Y. & Ramamurthy, K. (2011). Management Information Systems Quarterly, 35(4).   
  6. The role of IT application orchestration capability in improving agility and performanceLink to article review
    Queiroz, M., Tallon, P.P., Sharma, R. & Coltman, T. (2018). The Journal of Strategic Information Systems, 27(1).
  7. Improving strategic flexibility with information technologies: Insights for firm performance in an emerging economyLink to article review
    Chen, Y., Wang, Y., Nevo, S., Benitez, J. & Kou, G. (2017). Journal of Information Technology, 32(1).
  8. Unraveling the alignment paradox: How does business—IT alignment shape organizational agility? Link to article review
    Liang, H., Wang, N., Xue, Y. & Ge, S. (2017). Information Systems Research, 28(4). 



Article reviews related to Organizational agility

Exploring the relationships between IT competence, innovation capacity and organizational agility
Ravichandran, T.  (2018),  Journal of Strategic Information Systems , 27 (1) , 22-42.

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Exploring the relationships between IT competence, innovation capacity and organizational agility
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Understanding the link between information technology capability and organizational agility: An empirical examination
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Understanding the link between information technology capability and organizational agility: An empirical examination
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Unraveling the alignment paradox: How does business-IT alignment shape organizational agility?
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Unraveling the alignment paradox: How does business-IT alignment shape organizational agility?
Huigang Liang.  Nianxin Wang.  Yajiong Xue.  Shilun Ge.  (2017),  Information Systems Research , 28 (4) , 863-879.

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