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

Eva Martínez-Caro, Juan Gabriel Cegarra-Navarro, Alexeis Garcia-Perez, Gabriel Cepeda-Carrión

Research output: Chapter in Book/Report/Conference proceedingConference proceeding

1 Citation (Scopus)

Abstract

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.
Original languageEnglish
Title of host publicationProceedings of the 19th European Conference on Knowledge Management (ECKM 2018
EditorsEttore Bolisani , Eleonora Di Maria , Enrico Scarso
PublisherAcademic Conferences and Publishing International Ltd.
Pages512-520
Number of pages9
Volume1
ISBN (Electronic)978-1-911218-94-4
ISBN (Print) 978-1-5108-7210-3
Publication statusPublished - 1 Jan 2018
Event19th European Conference on Knowledge Management - Padua, Italy
Duration: 6 Sep 20187 Sep 2018
Conference number: 19

Publication series

NameProceedings of the European Conference on Knowledge Management, ECKM
ISSN (Print)2048-8963

Conference

Conference19th European Conference on Knowledge Management
Abbreviated titleECKM 2018
CountryItaly
CityPadua
Period6/09/187/09/18

Keywords

  • Absorptive capacity
  • Firm performance
  • Organisational agility
  • Technology assimilation

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    Martínez-Caro, E., Cegarra-Navarro, J. G., Garcia-Perez, A., & Cepeda-Carrión, G. (2018). Technology assimilation, absorptive capacity and organisational agility: Their combined effect on firm performance. In E. Bolisani , E. Di Maria , & E. Scarso (Eds.), Proceedings of the 19th European Conference on Knowledge Management (ECKM 2018 (Vol. 1, pp. 512-520). (Proceedings of the European Conference on Knowledge Management, ECKM). Academic Conferences and Publishing International Ltd.