article

Shaping agility through digital options: reconceptualizing the role of information technology in contemporary firms

Authors:

V. Sambamurthy,

Anandhi Bharadwaj,

Varun GroverAuthors Info & Claims

MIS Quarterly, Volume 27, Issue 2

Pages 237 - 263

Published: 01 June 2003 Publication History

Abstract

Agility is vital to the innovation and competitive performance of firms in contemporary business environments. Firms are increasingly relying on information technologies, including process, knowledge, and communication technologies, to enhance their agility. The purpose of this paper is to broaden understanding about the strategic role of IT by examining the nomological network of influences through which IT impacts firm performance. By drawing upon recent thinking in the strategy, entrepreneurship, and IT management literatures, this paper uses a multitheoretic lens to argue that information technology investments and capabilities influence firm performance through three significant organizational capabilities (agility, digital options, and entrepreneurial alertness) and strategic processes (capability-building, entrepreneurial action, and coevolutionary adaptation). We also propose that these dynamic capabilities and strategic processes impact the ability of firms to launch many and varied competitive actions and that, in turn, these competitive actions are a significant antecedent of firm performance. Through our theorizing, we draw attention to a significant and reframed role of IT as a digital options generator in contemporary firms.

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Index Terms

Shaping agility through digital options: reconceptualizing the role of information technology in contemporary firms
1. Applied computing
  1. Enterprise computing
    1. Business process management
  2. Operations research
    1. Decision analysis
2. Information systems
  1. Information systems applications
    1. Decision support systems

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cover image MIS Quarterly

MIS Quarterly Volume 27, Issue 2

June 2003

146 pages

ISSN:0276-7783

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Society for Information Management and The Management Information Systems Research Center

United States

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Published: 01 June 2003

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https://dl.acm.org/doi/10.1287/isre.2022.1105
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