Technological Antecedents of Organizational Agility: PLS SEM Based Analysis Using IT Infrastructure, ERP Assimilation, and Business Intelligence

Abstract

Organizations often ignore the use information technology infrastructure, Business Intelligence and ERP software to improvise their decision making process due to which organizational agility is suffered. Such organizations fail to make decisions according to the needs of the market that leads to the loss of market share. Based on the contingency theory, conceptual model of this study was developed using the constructs of IT Infrastructure Flexibility, Business Intelligence Use, ERP Assimilation, and Organizational Agility. Survey method was used to collect the data from the managers and executives, who are involved in the key decision making process in any organization. Total 253 out of 265 responses were considered valid and PLS SEM approach was used to test the direct and indirect effects. Results indicate that mediating effect of Business Intelligence Use and ERP Assimilation between IT Infrastructure Flexibility and Organizational Agility has been substantiated. Findings of this study conclude that IT Infrastructure should be improvised, specifically when organization is going to adopt the ERP systems and Business Intelligence to make the timely decisions according to the requirements of the market that ultimately affects the Organizational Agility.