IT-enabled dynamic capabilities: classification and evolution of key concepts in the literature

Purpose This study consolidates and synthesizes existing research on IT-enabled dynamic capabilities (ITDCs), identifying which capabilities have been recognized in the literature and tracing their evolution over time, to offer a structured taxonomy that helps organizations address challenges in leveraging IT for continuous adaptation and co-evolution with organizational change in rapidly shifting environments. Design/methodology/approach We conducted a systematic literature review of 58 publications, forming the basis for data assessment. Findings Our systematic review reveals five key ITDCs – market sensing, market analytics, innovation, agility enhancement and organizational development – that collectively foster continuous adaptation and strategic renewal in rapidly changing environments. Practical implications This study presents a comprehensive taxonomy of ITDCs, which firms can incorporate to adapt and transform, thereby improving their performance in a rapidly changing business environment. Originality/value This study comprehensively categorizes ITDCs while demonstrating their crucial role in driving organizational renewal and performance.