Organizational agility unleashed: Tapping intellectual capital for digital transformation effectiveness

Abstract

Digital transformation has become a critical and inevitable priority for organizations navigating increasingly dynamic and competitive environments. However, the mechanisms through which intellectual capital drives digital transformation effectiveness remain underexplored. This study examines the mediating role of organizational agility in this relationship, highlighting how its three dimensions—workforce, operational, and network agility—enable organizations to adapt and thrive in the digital era. A quantitative, correlational, and cross-sectional survey design was employed, underpinned by a post-positivist approach. Data were collected through a multi-stage sampling method from 265 respondents across 10 organizations in China and Thailand, representing various industries. The hypothesized mediation model was tested using PLS-SEM. The findings reveal that organizational agility fully mediates the effect of intellectual capital—comprising human, structural, and relational capital—on digital transformation effectiveness. Each dimension of organizational agility plays a distinct yet complementary role in enhancing digital transformation outcomes. This study uniquely contributes to the literature by providing a quantitative analysis of organizational agility's mediating role across its three dimensions. It advances the understanding of organizational agility as a multi-dimensional higher-level dynamic capability, bridging critical gaps in dynamic capabilities and digital transformation research. By elucidating these mechanisms, the study provides practical insights for organizations aiming to leverage intellectual capital and agility to drive transformative success, navigate uncertainty, and sustain a competitive advantage.