Technological Antecedents of Organizational Agility: PLS SEM Based Analysis Using IT Infrastructure, ERP Assimilation, and Business Intelligence

Abstract

Business intelligence, ERP assimilation, and IT infrastructure flexibility are components that can enhance organizational agility. At the same time, business intelligence (BI) usage improves management decisions. However, there are a few empirical studies on ERP assimilation and business intelligence. To fill this gap, we have proposed a new model with five direct and two mediating relationships. We have distributed 265 questionnaires and received 253 complete questionnaires. We collected the data through self-administered questionnaires adapted from earlier studies. The study has used the Smart PLS software to analyze the data using the partial least square structural equation modeling technique. Since the study measures second-order constructs, therefore, we believe that PLS-SEM is an appropriate software. The results indicate that IT infrastructure flexibility affects organizational agility, business intelligence use, and ERP assimilation. The results also support the association between business intelligence use and organizational agility and ERP assimilation and organization agility. Further, we find that business intelligence use and ERP assimilation have a mediating effect on organizational agility .

Keywords

• organizational agility
• it infrastructure
• erp assimilation