An explanatory and predictive model for organizational agility

Abstract

Organizational agility (OA), as a key dynamic capability, is a firm's ability to enable sensing environmental changes and responding efficiently and effectively to them. This study explores this topic further by analyzing the part that the information systems capabilities (ISC) variable plays as an antecedent of OA, and absorptive capacity (AC) as a mediator construct. Furthermore, this study tests the negative moderating role of hierarchy culture (HC) in the AC–OA link. Using partial least squares (PLS) and the PROCESS macro, this work finds evidence of these relations proposed, and the existence of a conditional mediating situation that HC generates. In addition, the main model with direct effects (ISC and AC as predictors) achieves an appropriate level of predictive validity for the key endogenous construct (OA).

Organizational agility

Information systems capabilities

Absorptive capacity

Hierarchy culture

Partial least squares (PLS)

Conditional mediation analysis