BUSINESS AGILITY WITHIN IS VALUE RESEARCH - PROPOSING A MEASUREMENT FRAMEWORK

In turbulent environments, business agility, which is the ability of firms to sense environmental changes and respond to them timely, is an important antecedent of long-term firm success. We introduce business agility as a construct consisting of sensing and responding dimensions reflected by market, network, and operational agility. Here, we explicate the underlying capabilities, drivers, and indicators. By proposing a measurement framework, we address several calls for an operationalization of business agility. Moreover, we validate our conceptualization by applying the business agility measurement framework to the 10 largest banks in North-America. As a result, we find first evidence of a relationship between business agility and a firm’s capability to successfully master environments of higher dynamism. The presented conceptualization is meant to be a foundational building block for research on business agility and the enabling role of IT as an important research topic at the intersection of accounting and IS value research