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Impact of organizational inertia on organizational agility: the role of IT ambidexterity

Jie Zhen, Cejun Cao (caocejun0601@tju.edu.cn), Hanguang Qiu and Zongxiao Xie
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Jie Zhen: Chongqing Technology and Business University
Cejun Cao: Chongqing Technology and Business University
Hanguang Qiu: Chongqing Technology and Business University
Zongxiao Xie: Financial Certification Authority

Information Technology and Management, 2021, vol. 22, issue 1, No 4, 53-65

Abstract: Abstract Firms have increasingly relied on information technology (IT) to remain agile in today’s hypercompetitive business environment. Drawing on the organizational inertia theory and literature on IT-enabled agile, this study examines the relationship between organizational inertia, IT ambidexterity (i.e., IT exploration and exploitation), and organizational agility. Quantitative data were collected from 326 respondents through a questionnaire survey in China and analyzed using the partial least squares structural equation modeling. Results show that organizational agility is negatively influenced by organizational inertia, whereas IT exploration and exploitation positively related to organizational agility and IT exploitation is the dominant force. Furthermore, IT exploration and exploitation partially mediate the relationship between organizational inertia and agility. These findings offer new theoretical perspectives on organizational agility and guide practitioners to deal with related inertia issues to effectively improve organizational agility.

Keywords: Organizational inertia; Organizational agility; IT exploration; IT exploitation (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s10799-021-00324-w

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