Entrepreneurial agility and organizational performance of IT firms: A mediated moderation model
PURPOSE: The Information and Communication Technology (ICT) sector is playing an important role in the growth of the world`s economy. However, limited knowledge exists concerning the underlying mechanisms and boundary-spanning conditions under which entrepreneurial agility (EA) affects the organizat...
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| Format: | Article |
| Language: | English |
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Cognitione Foundation for the Dissemination of Knowledge and Science
2024-01-01
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| Series: | Journal of Entrepreneurship, Management and Innovation |
| Subjects: | |
| Online Access: | https://jemi.edu.pl/uploadedFiles/file/all-issues/vol20/issue2/JEMI_Vol20_Issue2_2024_Article4.pdf |
| _version_ | 1826903227055996928 |
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| author | Leul Girma Haylemariam Stephen Oduro Zewdu Lake Tegegne |
| author_facet | Leul Girma Haylemariam Stephen Oduro Zewdu Lake Tegegne |
| author_sort | Leul Girma Haylemariam |
| collection | DOAJ |
| description | PURPOSE: The Information and Communication Technology (ICT) sector is playing an important role in the growth of the world`s economy. However, limited knowledge exists concerning the underlying mechanisms and boundary-spanning conditions under which entrepreneurial agility (EA) affects the organizational performance (OP) of IT firms. This study draws on the Dynamic Capability Theory (DCT) to examine the effect of entrepreneurial agility (EA) on the organizational performance (OP) of Italian IT firms with the mediating role of open innovation (OI) and the moderating role of environmental dynamism (ED). METHODOLOGY: Employing an explanatory research design and convenience sampling technique via an online survey to gather data from a sample of 411 Italian IT firms, the study tested the formulated hypotheses using the structural equation modeling technique in AMOS statistical software. FINDINGS: The results revealed that EA, directly and indirectly, influences OP of IT firms. Moreover, the mediation analysis unveils that OI plays a complementary, partial mediation role in the EA—OP nexus. Finally, ED moderates this focal relationship, such that in the presence of high environmental dynamism, the relationship between EA and OP gets stronger compared to low environmental dynamism. IMPLICATIONS: The findings imply that IT firms should emphasize adopting agile procedures and structures that allow them to react to new problems and opportunities swiftly by building a culture of innovation through the adoption of OI strategies (inbound, outbound, and coupled) to tap into the broader range of expertise and resources in the business environment. To improve the link between OI and OP, managers should prioritize building relationships with external partners, such as customers, suppliers, and academic institutions. IT firms should also prioritize building a diverse and inclusive workforce that can bring diverse perspectives and experiences to the innovation process to enhance their innovation capabilities and create products and services that better meet the needs of customers. ORIGINALITY AND VALUE: The study´s value lies in extending the ongoing scholarly discussion on the nexus between EA and OP by exploring OI as an intermediary mechanism that connects EA, OP, and ED as a boundary-spanning condition that moderates the focal relationship. This research highlights the interplay between EA, OI, ED, and OP, using the DCT as a theoretical foundation. It is the first to examine such interrelationships in the IT sector. In addition, the study provides new insight for researchers focusing on the information technology (IT) sector. |
| first_indexed | 2024-04-24T13:15:29Z |
| format | Article |
| id | doaj.art-e6058e3009704e27bd9b47e391e36744 |
| institution | Directory Open Access Journal |
| issn | 2299-7326 |
| language | English |
| last_indexed | 2025-02-17T07:51:37Z |
| publishDate | 2024-01-01 |
| publisher | Cognitione Foundation for the Dissemination of Knowledge and Science |
| record_format | Article |
| series | Journal of Entrepreneurship, Management and Innovation |
| spelling | doaj.art-e6058e3009704e27bd9b47e391e367442025-01-03T01:10:11ZengCognitione Foundation for the Dissemination of Knowledge and ScienceJournal of Entrepreneurship, Management and Innovation2299-73262024-01-01202759210.7341/20242024Entrepreneurial agility and organizational performance of IT firms: A mediated moderation modelLeul Girma Haylemariam0Stephen Oduro1Zewdu Lake Tegegne2Ph.D. Candidate, International Management, Faculty of Economics at University of International Studies of Rome, Italy Via Cristoforo Colombo, 200 - 00147 RomePh.D., Assistant Professor, Free University of Bolzano, Bolzano, Italy, UNIBZ Piazza Università, 1 Italy - 39100, Bozen-Bolzano, ItalyAssistant Professor, Marketing Management Department, Bahir Dar University-Ethiopia, H9FX+Q62, Bahir Dar, EthiopiaPURPOSE: The Information and Communication Technology (ICT) sector is playing an important role in the growth of the world`s economy. However, limited knowledge exists concerning the underlying mechanisms and boundary-spanning conditions under which entrepreneurial agility (EA) affects the organizational performance (OP) of IT firms. This study draws on the Dynamic Capability Theory (DCT) to examine the effect of entrepreneurial agility (EA) on the organizational performance (OP) of Italian IT firms with the mediating role of open innovation (OI) and the moderating role of environmental dynamism (ED). METHODOLOGY: Employing an explanatory research design and convenience sampling technique via an online survey to gather data from a sample of 411 Italian IT firms, the study tested the formulated hypotheses using the structural equation modeling technique in AMOS statistical software. FINDINGS: The results revealed that EA, directly and indirectly, influences OP of IT firms. Moreover, the mediation analysis unveils that OI plays a complementary, partial mediation role in the EA—OP nexus. Finally, ED moderates this focal relationship, such that in the presence of high environmental dynamism, the relationship between EA and OP gets stronger compared to low environmental dynamism. IMPLICATIONS: The findings imply that IT firms should emphasize adopting agile procedures and structures that allow them to react to new problems and opportunities swiftly by building a culture of innovation through the adoption of OI strategies (inbound, outbound, and coupled) to tap into the broader range of expertise and resources in the business environment. To improve the link between OI and OP, managers should prioritize building relationships with external partners, such as customers, suppliers, and academic institutions. IT firms should also prioritize building a diverse and inclusive workforce that can bring diverse perspectives and experiences to the innovation process to enhance their innovation capabilities and create products and services that better meet the needs of customers. ORIGINALITY AND VALUE: The study´s value lies in extending the ongoing scholarly discussion on the nexus between EA and OP by exploring OI as an intermediary mechanism that connects EA, OP, and ED as a boundary-spanning condition that moderates the focal relationship. This research highlights the interplay between EA, OI, ED, and OP, using the DCT as a theoretical foundation. It is the first to examine such interrelationships in the IT sector. In addition, the study provides new insight for researchers focusing on the information technology (IT) sector.https://jemi.edu.pl/uploadedFiles/file/all-issues/vol20/issue2/JEMI_Vol20_Issue2_2024_Article4.pdfentrepreneurial agilityorganizational performanceit firmsdynamic capability theoryopen innovationenvironmental dynamismmediated moderation modelstructural equation modelinginformation and communicationtechnology sectorinnovation management |
| spellingShingle | Leul Girma Haylemariam Stephen Oduro Zewdu Lake Tegegne Entrepreneurial agility and organizational performance of IT firms: A mediated moderation model Journal of Entrepreneurship, Management and Innovation entrepreneurial agility organizational performance it firms dynamic capability theory open innovation environmental dynamism mediated moderation model structural equation modeling information and communication technology sector innovation management |
| title | Entrepreneurial agility and organizational performance of IT firms: A mediated moderation model |
| title_full | Entrepreneurial agility and organizational performance of IT firms: A mediated moderation model |
| title_fullStr | Entrepreneurial agility and organizational performance of IT firms: A mediated moderation model |
| title_full_unstemmed | Entrepreneurial agility and organizational performance of IT firms: A mediated moderation model |
| title_short | Entrepreneurial agility and organizational performance of IT firms: A mediated moderation model |
| title_sort | entrepreneurial agility and organizational performance of it firms a mediated moderation model |
| topic | entrepreneurial agility organizational performance it firms dynamic capability theory open innovation environmental dynamism mediated moderation model structural equation modeling information and communication technology sector innovation management |
| url | https://jemi.edu.pl/uploadedFiles/file/all-issues/vol20/issue2/JEMI_Vol20_Issue2_2024_Article4.pdf |
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