Technology assimilation, absorptive capacity and organisational agility: Their combined effect on firm performance

In the current dynamic context, organisations have to focus their management expertise on finding effective ways to create a sustainable competitive advantage. Investment in information technology (IT) is often perceived as a solution to successful business strategies. However, research and practice have shown that a considerable percentage of IT systems have failed to sustain any competitive advantage because managers have been focused on the IT infrastructure, leaving in the background its integration in the strategy of the company. One of the most common barriers to the effective use of technologies consists of the technology assimilation capability of its potential users. This research responds to the need for investigating the mediating role that such capabilities may have in the relationship between IT assimilation and firm performance. To achieve its aim, this study investigates how IT assimilation can encourage potential and realised absorptive capacity and how these can, in turn, facilitate organisational agility and organisational performance. A research model was developed and tested using a sample of 110 Spanish firms that employed more than 100 individuals and also made use of Editran tool, a platform for communications over data networks and the Internet. The data collected was analysed using a PLS approach. Our results suggest that IT assimilation support the development of both potential and realised absorptive capacities within the firm and this, in turn, have a positive effect on organisational agility. Thus, potential and realised absorptive capacities mediate the influence of IT assimilation on organisational agility. Furthermore, organisational agility has an effect on firm performance. The findings highlight the critical role of IT assimilation in improving firm performance through complementary relationships with absorptive capacity and organisational agility.