The role of technology agility on business processes and organizational agilities

Abstract

Organizational agility has been regarded as one of the most important critical resources for enabling better firm performance. This study extends the existing literature by introducing technology agility as an antecedent to organizational agilities, which, subsequently, impact business processes and, ultimately, firm performance. Technology agility is the firm's ability to quickly react to technological changes. Our conceptual framework bridges the dynamic capabilities framework with the process-based view of the organization. We test our conceptual framework using a survey data set from the Brazilian automotive industry. The results confirm that technology agility is a significant antecedent to key organizational agilities and these agilities impact both financial and market performance through intermediate business processes. We conclude that technology agility plays a key strategic role in shaping the firm's dynamic capabilities that further enhance firm performance.