The effect of human IT capability on organizational agility: an empirical analysis

Abstract

Purpose The purpose of this study underpins investigation of the impact of human IT capabilities (comprising business functions, interpersonal management and technology management expertise) on organizational agility (in terms of sensing and responding agilities). The moderating influence of IT infrastructure spending on this human IT–agility linkage is also thoroughly investigated. Design/methodology/approach Primary data collected from 300 IT personnel working in various publicly owned banking groups functioning across India are used for this study and structural equation modeling (SEM) is used to assess the human IT–agility link. Findings The two-fold research findings highlight the following: first, human IT capabilities enable both the sensing and responding components of agility and second, firms need to focus on translating huge and impudent IT investments into building superior capabilities to effectively shape agility. Originality/value This study greatly contributes to the information system (IS) literature by examining human IT capability and agility in terms of second-order constructs and provides a more holistic and comprehensive understanding of this unique relationship. The study precisely investigates the manner in which distinct human IT capability dimensions interact with both types of agilities along with the moderating effect of IT spending on this linkage.

Assessment of IS‐innovation strategic alignment factors among universal banks in Ghana

“…This implies that management of these six universal banks were generally interested in finding the right type of fit in terms of strategic content (Tallon, ) and strategically collaborated to pursue strategic alignment activities that resulted in successful alignment (Obeng & Mkhize, ). This finding is consistent with the claims of (Henderson & Venkatraman, ; Panda & Rath, ) that successful IS‐business strategic alignment requires collaboration between functional areas and commitment of the top executives. Partial alignment does not result in a full realization of strategic intent (Obeng & Mkhize, ); hence, it is positioned far from the rest of the strategic alignment categories (see Figure ).…”

“…The banks were aware that, cross‐functional collaboration using IS to integrate knowledge to solve business and IT challenges (Panda & Rath, ), sharing business and IT goals, using IS for appropriate utilization of strategic intangibles (Labidi et al, ), and maintaining a good relationship between business and IT executives to increase knowledge of each other's domains (Padukkage et al, ) positively impact on strategic alignment. This could be inferred from statements made by participants including “communication, collaboration, understanding business strategy and how technology can fit into it to promote alignment” (B01HT).…”

“…The evidence is close relationship between IS projects strategic value, strategic alignment outcome, innovation objectives, and drivers in Figure . Moreover, IT personnel of the banks had the needed expertise to manage current trends of banking technology (Panda & Rath, ) and invested in ISs to align and transform business strategies (Coltman et al, ), manage customer relationships (Chen & Tsou, ), enhance collaboration (Panda & Rath, ), and improve performance (Wu & Chiu, ). These reflect statements participants made that “the business will come with their strategy and share with us.…”

“…There are several factors that enable or inhibit IS‐innovation strategic alignment. Among these include relationships within organizations, sharing information, and strategically planning together (Chan, Sabherwal, & Thatcher, ); formal and informal aspects of organizational culture (Tallon & Kraemer, ), collaboration and sharing of knowledge and skills between business staff and IT staff (Luftman, ; Obeng & Mkhize, ), scope of IT initiatives (Luftman, Lyytinen, & Zvi, ), and leadership to facilitate the alignment process (Panda & Rath, ). For other researchers, firm‐wide active involvement between the business and IT functions during strategy formulation (Henderson & Venkatraman, ), senior management support and focus on long‐term critical issues for successful alignment (Broadbent & Weill, ), management skill and capability (Luftman, Papp, & Brier, ; Street, Gallupe, & Baker, ), purposeful and strategically focused communication (Panda & Rath, ), and organizational learning (Crossan & Berdrow, ; Obeng & Mkhize, ) are factors that promote or hinder alignment.…”

Organizational Agility Conceptual Model

“…Other analyses focus on individual factors and their influence on organizational agility. For example, Panda & Rath (2017), Mikalef & Pateli (2017), Felipe et al (2016), Yeganegi & Azar (2012) study how information technology capabilities affect agility level in the organization. Their empirical research shows the direct positive correlation between IT capabilities and agility level in the organization, i.e.…”