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Developing information processing capability for operational agility: implications from a Chinese manufacturer

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  • Pei-Ying Huang
  • Shan L Pan
  • Tao Hua Ouyang

Abstract

The operational agility literature suffers from a lack of clarity in terms of the process or underlying mechanisms through which operational agility is achieved. Drawing on the information processing view of the firm, this study attempts to address this gap by examining the process of operational agility development. A process model of developing information processing capability for operational agility is proposed. As the model suggests, operational agility is achieved through a two-step process – the construction of IT-enabled information processing network and the implementation of organizational control – to enhance the right information processing capability. We further identify three types of information processing capability – information sensitivity, information synergy and information fluidity – that enable operational agility. Furthermore, a five-step practical guide for developing information processing capability for operational agility is provided for practitioners. This is achieved by conducting a case study of Haier, one of the largest household appliance manufacturers in China. This paper concludes with a discussion of the potential contributions and directions for future research.

Suggested Citation

  • Pei-Ying Huang & Shan L Pan & Tao Hua Ouyang, 2014. "Developing information processing capability for operational agility: implications from a Chinese manufacturer," European Journal of Information Systems, Taylor & Francis Journals, vol. 23(4), pages 462-480, July.
    • Handle: RePEc:taf:tjisxx:v:23:y:2014:i:4:p:462-480
    DOI: 10.1057/ejis.2014.4
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    Cited by:

    1. Shivam Gupta & Sachin Modgil & Choong-Ki Lee & Uthayasankar Sivarajah, 2023. "The future is yesterday: Use of AI-driven facial recognition to enhance value in the travel and tourism industry," Information Systems Frontiers, Springer, vol. 25(3), pages 1179-1195, June.
    2. Xiaoli Guo & Weili Xia & Taiwen Feng & Jianyu Tan & Fenggang Xian, 2024. "Blockchain technology adoption and sustainable supply chain finance: The perspective of information processing theory," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3614-3632, July.

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