Relationship Between Ambidexterity, Environmental Dynamism and Organizational Agility: Insights from India’s IT Sector

Abstract

Purpose- The study analyzed the relationship between ambidexterity, environmental dynamism, and organizational agility, in which environmental dynamism carry the mediating character. The study is related to the IT sector, where being ambidextrous and agile to the outside world is vital.

Introduction- Organizational agility is essential for prosperity and accomplishment due to external pressure from the business environment. In the current business environment, organizational ambidexterity is indispensable to govern volatility, nurture innovation, maintain competitiveness, and achieve lasting success for the IT sector. In the rat race of global competition, the Covid-19 outbreak, remote work demands, changing laws and regulations, and dynamic environmental conditions necessitate agility in the Indian IT sector.

Methodology- Precise literature review and quantitative analysis have been applied to 226 employees (middle-level managers) in the selected IT companies from Chandigarh city. To derive the direct and mediation impact between ambidexterity, environmental dynamism, and organizational agility, SEM has been applied on the collected data.

Findings- The results demonstrate that dynamics related to the environment have a positive and significant relationship with both exploration and exploitation. Secondly, exploration and exploitation have a positive relationship with organizational agility. There has been no mediating effect of environmental dynamism on the relationship between exploration and organizational agility as well as exploitation and organizational agility. The study elucidates that ambidexterity and organizational agility hold a positive correlation, which is ultimately favorable for the IT sector, as articulated in the literature.