Purpose This study aims to test a model in which the effect of strategic information technology (IT)-business alignment on organizational agility is examined by the moderating influence of environmental uncertainty. Design/methodology/approach This research utilizes a matched-pair survey data collected from 300 IT and business executives working in various privately owned Indian financial enterprises, and structural equation modeling is used to examine the alignment–agility linkage. Findings The analysis demonstrates the positive effect of alignment on agility (studied as business process and market responsive agilities), and alignment is more effective on business process agility than market responsive agility. However, the moderation analysis reveals that in a highly uncertain environment, alignment has more effect on market responsive agility but not on business process agility. Originality/value Although previous studies (mostly conducted in the context of developed countries) have reported about the positive IT-business alignment and organizational agility linkage, the literature is silent regarding the influence of external contingent factors on this relationship from a developing country perspective. The authors have conceptualized alignment on the basis of strategic alignment maturity model and meticulously examined its relationship with both categories of agility. This research extends the alignment-agility theory and provides empirical support for this unique association from a developing country (i.e. India) perspective, and thereby, greatly contributes to the alignment literature.
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