Enterprise Systems and Organizational Agility: A Review of the Literature and Conceptual Framework <s> VI. CONCEPTUAL FRAMEWORK <s> Seeks to present a better understanding of dynamic capabilities and the resource-based view of the firm. Dynamic capabilities are considered to be the "organizational and strategic routines by which firms achieve new resource configurations." Dynamic capabilities are identifiable and specific routines that can serve different purposes, including integrating resources, reconfiguring resources within firms, and guiding the gain and release of resources. Various examples such as the product development process and alliancing, are discussed. Commonalities related to effective dynamic capabilities can be seen across firms though this does not mean that these capabilities are exactly alike. The dynamism of the market can impact the sustainability of the dynamic capabilities and the causal ambiguity of these capabilities. Moderately dynamic markets see robust, grooved routine, while high velocity markets experience simple rules and real-knowledge creation. The evolution of these dynamic capabilities within a firm are unique but the firm's individual path is shaped by well-known learning mechanisms. Competitive advantage does not lie in the dynamic capabilities themselves but rather in the resource configurations that managers build using these dynamic capabilities. (SRD) <s> BIB001 </s> Enterprise Systems and Organizational Agility: A Review of the Literature and Conceptual Framework <s> VI. CONCEPTUAL FRAMEWORK <s> Agility is vital to the innovation and competitive performance of firms in contemporary business environments. Firms are increasingly relying on information technologies, including process, knowledge, and communication technologies, to enhance their agility. The purpose of this paper is to broaden understanding about the strategic role of IT by examining the nomological network of influences through which IT impacts firm performance. By drawing upon recent thinking in the strategy, entrepreneurship, and IT management literatures, this paper uses a multitheoretic lens to argue that information technology investments and capabilities influence firm performance through three significant organizational capabilities (agility, digital options, and entrepreneurial alertness) and strategic processes (capability-building, entrepreneurial action, and coevolutionary adaptation). We also propose that these dynamic capabilities and strategic processes impact the ability of firms to launch many and varied competitive actions and that, in turn, these competitive actions are a significant antecedent of firm performance. Through our theorizing, we draw attention to a significant and reframed role of IT as a digital options generator in contemporary firms. <s> BIB002 </s> Enterprise Systems and Organizational Agility: A Review of the Literature and Conceptual Framework <s> VI. CONCEPTUAL FRAMEWORK <s> The current highly dynamic business environment requires businesses to be agile. Business agility is the ability to swiftly and easily change businesses and business processes beyond the normal level of flexibility to effectively manage unpredictable external and internal changes. This study reports on a cross-industry analysis of change factors requiring agility and assesses agility gaps that companies are facing in four industry sectors in the Netherlands. A framework was constructed to measure the perceived gaps between the current level of business agility and the required level of business agility. The questionnaire and in-depth interviews held reveal that today's businesses perceive to lack the agility required to quickly respond to changes, whose speed and requirements are difficult to predict. The paper presents rankings of generic and sector-specific agility gaps. These show that although some generic change factors requiring agility exist, the change factors requiring agility that cause agility gaps differ across industry sectors. Among the factors that enable or hinder business agility, the existence of inflexible legacy systems is perceived to be a very important disabler in achieving more business agility. A number of basic principles and directions are discussed to transform Information Technology from barrier into key enabler for increased agility in organizations and business networks. <s> BIB003 </s> Enterprise Systems and Organizational Agility: A Review of the Literature and Conceptual Framework <s> VI. CONCEPTUAL FRAMEWORK <s> In turbulent environments, enterprise agility, that is, the ability of firms to sense environmental change and respond readily, is an important determinant of firm success. We define and deconstruct enterprise agility, delineate enterprise agility from similar concepts in the business research literature, explore the underlying capabilities that support enterprise agility, explicate the enabling role of information technology (IT) and digital options, and propose a method for measuring enterprise agility. The concepts in this paper are offered as foundational building blocks for the overall research program on enterprise agility and the enabling role of IT. <s> BIB004 </s> Enterprise Systems and Organizational Agility: A Review of the Literature and Conceptual Framework <s> VI. CONCEPTUAL FRAMEWORK <s> Major innovation (MI), composed of both radical and really new innovation, is an important mechanism for enabling the growth and renewal of an enterprise. Yet it is poorly managed in most established firms, and success stories are rare. This conceptual article draws on systems theory, recent advances in dynamic capabilities theory, and the management of innovation literature to offer a framework for building an MI dynamic capability. The framework is composed of seven elements that together form a management system rather than a process-based approach to nurturing radical innovation. These system elements are (1) an identifiable organization structure; (2) interface mechanisms with the mainstream organization, some of which are tightly coupled and others of which are loose; (3) exploratory processes; (4) requisite skills and talent development, given that entrepreneurial talent is not present in most organizations; (5) governance and decision-making mechanisms at the project, MI portfolio, and MI system levels; (6) appropriate performance metrics; and (7) an appropriate culture and leadership context. It is argued that dynamic capabilities for phenomena as complex as MI must be considered in a systems fashion rather than as operating routines and repeatable processes as the literature currently suggests. A set of propositions is offered regarding how each element should play out in this parallel management system. Finally, each element's role in the major innovation system is justified in terms of four criteria required by systems theory: (1) The system is identifiable, and its elements are interdependent; (2) the effect of the whole is greater than the sum of the parts; (3) homeostasis is achieved through interaction and networking with the larger organization; and (4) there is a clear purpose in the larger system in which the MI management system is embedded. Examples are given to demonstrate these criteria. Systems theory offers a new way of thinking about dynamic capability development and management. <s> BIB005 </s> Enterprise Systems and Organizational Agility: A Review of the Literature and Conceptual Framework <s> VI. CONCEPTUAL FRAMEWORK <s> An electroconductive laminated window having an electroconductive coating applied to one interior substrate surface with a pair of bus bars electrically connecting a source of electrical potential thereto. The bus bars include an electroconductive layer having volume resistivity less than about 10-2 ohm-cm interposed between and conformable to the surface configurations of the electroconductive coating and a flexible metallic current carrying member. The metallic current carrying member is preferably a mesh of thin copper foil which is substantially bendable in its own plane, and the electroconductive layer is preferably a metallic layer substantially free of non-metallic components, consisting of a mixture of finely divided electroconductive particles and finely divided metal alloy particles having a fusion temperature between about 70 DEG C. and about 150 DEG C. <s> BIB006
The central argument of our conceptual framework (Figure 1 ) is in line with the "facilitating view of IS/ES and OA." However, we argue that the impact of ES on OA is not direct. Rather, organizations need to transform ES resources to develop an agility-enabling ES capability. To understand the structure of these resources and capabilities, we draw from the dynamic capability theory (DCT). The DCT is an extension of the resource-based view (RBV)  . The DCT regards firms' ability to constantly adapt, renew, and reconfigure their capabilities and competences as a major source of performance  . Dynamic capabilities are "the organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve, and die" BIB001 Martin, 2000, p. 1105] . While the RBV emphasizes the appropriate selection of resources, the DCT emphasizes the evolvement of resources  , which is signified by two processes: resourcepicking and capability-building in the organization-learning loop. Dynamic capabilities are commonly associated with a dynamic environment where an organization needs to keep changing its resources to suit the organization's strategy at a particular circumstance BIB005 . Hence, from the DCT perspective, organizational resources need to be adaptive, renewable, and reconfigurable to provide sustainable competitive advantage  . Under different conditions of the business environment, different types of dynamic capabilities are needed. Therefore, dynamic capabilities have to be adaptive to various business contexts that organizations fall into. Besides, in order to sustain competitive advantage, dynamic capabilities should be renewable and reconfigurable. The DCT provides a relevant theoretical lens to conceptualize the link between ES and OA. ES represent valuable and arguably rare resources. They provide an essential business platform; can be key sources of organizational capabilities; and can potentially, albeit indirectly, contribute to OA BIB002 ]. However, ES resources are not static or ultimately superior in enabling OA. Instead, ES resources need to be carefully selected, configured, and combined with other non-ES organizational resources to generate two critical dynamic capabilities-sensing and responding. Volume 31 Article 8 Sensing capability refers to an organizational ability to quickly detect, interpret, and capture organizational opportunities BIB003 BIB006 . Responding capability represents an organizational ability to quickly mobilize and transform resources to react to the opportunities that the organization senses  BIB003 . Sensing and responding capabilities are interrelated. If organizations are unable to sense effectively, opportunities will be missed, responses will be ineffective, and resources will be wasted. Therefore, there should be alignment between sensing and responding capabilities to effectively capture business opportunities BIB004 . Sensing and responding capabilities, therefore, can be considered as types of dynamic capabilities that can be further enhanced through ES BIB002 . The extent to which an organization leverages its valuable ES competencies to enable its sensing and responding capabilities can significantly influence its level of agility. ES competencies and ES-enabled sensing and responding capabilities can together help organizations to quickly and effectively adapt to changes, renew and reconfigure their capabilities, and become and stay agile. Figure 1 captures the structure of the conceptual framework.