Developing organizational agility through it capability and km capability: The moderating effects of organizational climate

According to the hierarchical framework of organizational capabilities and the capability embeddedness view in dynamic capability theory, this study investigates how lower-order capabilities (i.e. knowledge management capability and information technology capability) influence higher-order capability (i.e. organizational agility), which finally lead to superior firm performance. Meanwhile, the moderating effect of organizational climate (including affiliation, innovativeness, and fairness) is investigated as well. The results of a survey of 131 firms indicate that both KM capability and IT capability have a positive effect on agility, and agility has a positive effect on firm performance. Organizational climate plays different kinds of moderating roles. Specifically, the three dimensions of climate have a positive influence on the relationship between IT capability and agility. However, for the relationship between KM capability and agility, only fairness has a negative moderating effect. Implications and suggestions for future research are provided.