How Information Technology Governance Influences Organizational Agility: The Role of Market Turbulence

ABSTRACT

We used a novel approach by extending the resource-based view with the dynamic capabilities view to capture the relationship between IT governance and organizational agility. Results from our survey of senior managers suggest that IT and innovation capabilities fully mediate IT governance on organizational agility. They show the strong impact of both IT governance and IT capability on organizational agility with high market turbulence, whereas innovation capability highly impacts organizational agility with low market turbulence.

KEYWORDS:

• IT governance
• IT capability
• innovation capability
• organizational agility
• market turbulence
• IT business value

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Moustafa Elazhary

Moustafa Elazhary works at Pforzheim University of Applied Sciences as a senior lecturer and researcher in information systems. Previously he was the MIS program leader at Modern Sciences and Arts University (MSA), Cairo, Egypt. Before that, he was a senior lecturer in computer science at the American University in Cairo. His research interests are in IT governance, board governance of IT, innovation, and strategic IT management. He has published in different journals and conferences, including, Arbeitskreis Wirtschaftsinformatik (AKWI) and the Association of Information Systems (AIS).

Aleš Popovič

Aleš Popovič is a Professor of Information Systems at NEOMA Business School, France, and the University of Ljubljana, Slovenia, and a visiting professor at NOVA IMS – Universidade Nova de Lisboa, Portugal. He studies IS value in organizations, IS success, behavioral and organizational issues in IS, and IT in inter-organizational relationships. Aleš has published his studies in different academic journals, such as Journal of the Association for Information Systems, European Journal of Information Systems, Information & Management, Decision Support Systems, and Journal of Strategic Information Systems, among others.

Paulo Henrique de Souza Bermejo

Paulo Henrique de Souza Bermejo is an associate professor at the University of Brasília (UnB) and visiting professor at the Graduate Program of Compute Modeling of Systems at the Federal University of Tocantins – Brazil (UFT). He has a master’s degree in Production Engineering and a Ph.D. in Engineering and Knowledge Management, both from the Federal University of Santa Catarina – Brazil (UFSC), a postdoctoral stage in Innovation at Bentley University in Massachusetts/ USA, and Executive Certification in Technology and Innovation by the Massachusetts Institute of Technology (MIT). His main research interests are Efficiency, Technology, Innovation, and Digital and Organizational Transformation.

Tiago Oliveira

Tiago Oliveira is a Full Professor of Information Management, Associate Dean for Research and Doctoral Studies at the NOVA Information Management School (NOVA IMS). His research interests include technology adoption, the digital divide, and privacy. He has published papers in several academic journals and conferences, including Information & Management, Tourism Management, Decision Support Systems, Government Information Quarterly, Computers in Human Behavior, Journal of Business Research, Information Technology & People, Information Systems Frontiers, International Journal of Information Management, Journal of Global Information Management, Industrial Management & Data Systems, Computers in Industry, among others.