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IT architecture flexibility and IT governance decentralisation as drivers of IT-enabled dynamic capabilities and competitive performance: The moderating effect of the external environment

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  • Patrick Mikalef
  • Adamantia Pateli
  • Rogier van de Wetering

Abstract

A question of central importance for researchers and practitioners is how information technology (IT) can help firms survive and thrive in turbulent and constantly changing business environments. To address this issue, this study develops the idea that IT architecture flexibility helps sustain competitive performance by driving the formation of IT-enabled dynamic capabilities, and that IT governance decentralisation strengthens this relationship. IT architecture flexibility and IT governance decentralisation, therefore, develop complementary effects. We argue that IT-enabled dynamic capabilities are a core antecedent for competitive performance gains, particularly under uncertain external environmental conditions. Tests of the proposed model using survey data from 322 international firms support these ideas. Our research also shows that, under conditions of high environmental heterogeneity, the value of IT architecture flexibility and IT governance decentralisation is increased, while the impact of IT-enabled dynamic capabilities on competitive performance is amplified.

Suggested Citation

  • Patrick Mikalef & Adamantia Pateli & Rogier van de Wetering, 2021. "IT architecture flexibility and IT governance decentralisation as drivers of IT-enabled dynamic capabilities and competitive performance: The moderating effect of the external environment," European Journal of Information Systems, Taylor & Francis Journals, vol. 30(5), pages 512-540, September.
    • Handle: RePEc:taf:tjisxx:v:30:y:2021:i:5:p:512-540
    DOI: 10.1080/0960085X.2020.1808541
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    Citations

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    Cited by:

    1. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    2. Mohsin Riaz & Muhammad Ashfaq & Ismet Boz & Pomi Shahbaz, 2023. "The Dynamics of the Relationship Between Water Availability, Water Equity, Economic Benefits and Water User Associations’ Performance: A PLS-SEM Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 37(11), pages 4537-4552, September.
    3. Faozi A. Almaqtari & Najib H. S. Farhan & Hamood Mohammed Al-Hattami & Tamer Elsheikh, 2023. "The moderating role of information technology governance in the relationship between board characteristics and continuity management during the Covid-19 pandemic in an emerging economy," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-16, December.
    4. Lu, Hui Ting & Li, Xue & Yuen, Kum Fai, 2023. "Digital transformation as an enabler of sustainability innovation and performance – Information processing and innovation ambidexterity perspectives," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    5. Deon Montasser & Ruslan Prijadi & Tengku Ezni Balqiah, 2023. "The Mediating Effect of IT-Enabled Dynamic Capabilities and Organizational Readiness on the Relationship Between Transformational Leadership and Digital Business Model Innovation: Evidence From Indone," SAGE Open, , vol. 13(2), pages 21582440231, June.
    6. Wong, David T.W. & Ngai, Eric W.T., 2023. "The impact of advanced manufacturing technology, sensing and analytics capabilities, and planning comprehensiveness on sustained competitive advantage: The moderating role of environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 265(C).
    7. Habib Saragih, Arfah & Ali, Syaiful & Suwardi, Eko & Utomo, Hargo, 2024. "Finding the missing pieces to an optimal corporate tax savings: Information technology governance and internal information quality," International Journal of Accounting Information Systems, Elsevier, vol. 52(C).
    8. Junaid, Muhammad & Zhang, Qingyu & Cao, Mei & Luqman, Adeel, 2023. "Nexus between technology enabled supply chain dynamic capabilities, integration, resilience, and sustainable performance: An empirical examination of healthcare organizations," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    9. Chaudhuri, Ranjan & Chatterjee, Sheshadri & Gupta, Shivam & Kamble, Sachin, 2023. "Green supply chain technology and organization performance: Moderating role of environmental dynamism and product-service innovation capability," Technovation, Elsevier, vol. 128(C).

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