The Influence of IT Infrastructure Capability, IT Business Spanning Capability, and IT Proactive Stance on Organizational Performance, mediated by Organizational Agility

Abstract

The impact of Information Technology (IT) has been argued to have significant effect towards Business Performance. However, several literatures argued that such impact also depends on the company's agility to implement such Technology. This research aims to investigate the impact of IT Infrastructure Capability, IT Business Spanning Capability, and IT Proactive Stance towards Organizational Performance by considering the effect of Organizational Agility as Mediating Factor. Online questionnaires were developed and distributed to respondents from several coal mining companies in Indonesia. The analysis of PLS-SEM was performed to test the hypotheses due to significant deviations from normality assumptions being found in the data. Results indicated that IT Infrastructure Capability and Organizational Agility do influence Organizational Performance significantly. IT Infrastructure Capability was also found to have significant influence towards Organizational Agility, while IT Proactive Stance also provided similar results. The analysis of indirect effect showed that Organizational Agility only mediates the relationship between IT Proactive Stance towards Organizational Performance. The other two factors of IT Infrastructure Capability and IT Business Spanning Capability was found to be insignificant. It is arguable that the characteristic of the coal mining industry, which is the focus of this research might be contributed heavily on the findings.