Title: The creative process of business value of IT in dynamic environment: the mediating effect of firm agility

Authors: Yi Jiang; Jing Zhao

Addresses: Research Center for Digital Business Management, College of Economics and Management, China University of Geosciences, Wuhan, Hubei, 430074, China ' Research Center for Digital Business Management, College of Economics and Management, China University of Geosciences, Wuhan, Hubei, 430074, China

Abstract: The creative process of business value of information technology (IT) in dynamic environment has already become the key focus of enterprises and academic circles. Based on the dynamic capability theory, this study demonstrates the relationship among interfirm IT application, firm agility and competitive performance by using 184 survey data. We find that firm agility, as a kind of dynamic capability, mediates the effect from interfirm IT application to competitive performance. We also find that when product complexity is higher, the effect of firm agility on competitive performance is more significant. This study is expected to help managers make right decisions in different market environment and make contributions to the research perspective on dynamic capability.

Keywords: dynamic capability theory; business value; firm agility; competitive performance; product complexity; interfirm IT applications; information technology; agile firms.

DOI: 10.1504/IJNVO.2015.070432

International Journal of Networking and Virtual Organisations, 2015 Vol.15 No.2/3, pp.200 - 214

Received: 16 Oct 2014
Accepted: 02 Mar 2015

Published online: 05 Jul 2015 *

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