Abstract
The purpose of this study is to investigate the impact of dynamic capabilities on enterprise agility through the mediating effect of IT alignment and the moderating influence of digital transformation. Using a quantitative survey strategy, data were collected from 236 respondents from UAE firms and analysed through a non-linear structural equation modelling approach, partial least squares (PLS-SEM). The study ’s findings indicate that firms’ transforming, sensing and seizing capabilities enhance enterprise agility, respectively. However, only transforming and seizing increase IT alignment, which in turn improved agility. Also, digital transformation was found to moderate the link between transforming and enterprise agility, while IT allignment acted as a mediator. The study offers novel evidence uncovering the mechanism whereby sub-dimensional dynamic capabilities impact enterprise agility. Precisely, it provides fresh evidence on the critical intervening roles of digital transformation and IT alignment in the UAE context.
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