Building organizational agility through digital transformation: a configurational approach in SMEs

Abstract

Purpose This study adopts a capability-based view to investigate the attainment of organizational agility in manufacturing small and medium-sized enterprises (SMEs). It first explores how these firms mobilize different types of operational and dynamic information technology (IT) capabilities to achieve a high level of agility through their digital transformation. In return, it also reveals opposite paths, i.e. those leading to its absence. Design/methodology/approach The research method involves a qualitative comparative analysis (QCA) of 65 Canadian manufacturing SMEs. Through necessity and sufficiency condition analysis procedures, this approach emphasizes the complexity of the digital transformation processes by revealing different sets (i.e. configurations) of what enable, or inhibit, organizational agility in these firms. Findings The findings indicate that manufacturing SMEs need to align at least one dynamic IT capability (sensing, learning, coordinating or integrating) and one operational IT capability (IT management, IT infrastructure or e-business) to be highly agile. In contrast, other findings indicate that there are suboptimal combinations of IT capabilities, which result in an absence of agility. Originality/value This study offers a deeper understanding of the complex interaction of IT capabilities in SMEs seeking greater agility in their business activities. Its contributions provide insights on the mobilization of a range of capabilities, both complementary and interdependent, to respond to changing conditions in their internal and external environments. These actionable findings can help various actors in the digital development of SMEs to design and implement effective IT strategies and public policies.

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