IT impacts on operation-level agility in service industries

This study examines the relationship between operation-level agility and firm performance in service industries. The study is augmented by investigating the role of IT resources and competence to achieve this specific type of agility. As of to date, most of the published literature in this stream of research has focused on manufacturing industry. This research is an early attempt to examine the strategic value of IT-enabled operational capabilities in service industry. We propose a theory-based model of the positive relationships among IT service competence, operation-level agility, and firm performance. Survey data of medium to large-size enterprises in service industries in the United States were used to validate the proposed model. The results indicate that operation-level agility is a significant driving force of firm performance in the service industries and that IT service competence significantly determines the operation-level agility. The results emphasize that IT-supported operation-level agility significantly leads to a better performance.