Information technology competency and organizational agility: roles of absorptive capacity and information intensity

Purpose: Scholars have examined the possible relationship between information technology (IT) and organizational agility. Although the general-level effect of IT is undisputed, empirical research on how different types of IT contribute to various aspects of organizational agility remains scarce. Therefore, this study aims to propose an integrated framework of internal capability and external environment to address this research gap. Design/methodology/approach: This study investigates the potential mediating effects of absorptive capacity and the moderating effects of information intensity in the IT‒agility relationship. With a dataset comprising 165 organizations in China, this work provides empirical evidence that the effects of absorptive capacity and information intensity are multifaceted and nuanced, thereby revealing the latent mechanisms of IT competency and organizational agility. Findings: Absorptive capacity partially mediates the effects of IT knowledge and IT operations on market capitalizing agility and fully mediates their effects on operational adjustment agility. However, no direct or indirect effects of IT objects are found on both types of organizational agility. Information intensity also positively moderates the effects of IT operations and IT objects on absorptive capacity. However, no significant moderation is found with regard to IT operations. Originality/value: This study provides novel insights by demonstrating clearly the different mediating roles of absorptive capacity in the relationship among various types of IT competency and diverse aspects of organizational agility. This work also underscores the moderating role of information intensity in shaping absorptive capacity through IT competency.