The Impact of IT Ambidexterity on Organizational Agility: The Mediating Role of Organizational Change Capacity

Background: Organizational agility (OA) is recognized as a vital capability for competitiveness in dynamic business environments. While IT capabilities are acknowledged as a potential source of OA, there is limited research on the agility-enabling role of IT ambidexterity (ITA), which is the dual pursuit of IT exploitation and IT exploration. In particular, the influence of ITA on market capitalizing agility (MCA) and operational adjustment agility (OAA), which are key agility dimensions, remains unexplored. Although prior work has argued that intermediary organizational capabilities may be required to translate IT capabilities into OA, no previous studies have considered the role of organizational change capacity (OCC), in the ITA-OA relationship. To address these gaps, we draw on the dynamic capability view and the IT-enabled agility literature to examine the relationships between ITA and MCA, OAA, and OA, and propose that OCC mediates these relationships. Method: A comprehensive quantitative approach, involving the development of a robust research instrument, was used to empirically investigate the relationships between the constructs. Survey data was collected from 173 IT professionals. The analysis was performed using partial least squares structural equation modelling to assess the measurement model and to test the hypotheses. Results: Our findings reveal that ITA has a direct positive impact on MCA, OAA, and OA, while OCC partially mediates the ITA-MCA, ITA-OAA, and ITA-OA relationships. All measurement and structural model assessment criteria were met, demonstrating the robustness of our conceptualized model. Conclusion: The results highlight the importance of balancing IT exploitation and exploration to foster OA, particularly through OAA and MCA, and introduces OCC as an intermediary capability that facilitates the translation of ITA into OA, and its dimensions. The theoretical arguments and empirical evidence offer insights for future research and organizational practice into the direct and indirect role of ITA in developing organizational dynamic capabilities.