Effect of it capability on performance of smes, the mediating role of business process agility and the moderating role of market dynamism

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This study develops and tests arguments that the relationship between IT capability and smes performance is channeled through Business Process Agility, and that the indirect effect of IT on performance, via Business Process Agility, is conditional upon levels of market dynamism. The proposed relationships are tested on a sample of 205 small- and medium-sized enterprises (smes) within the Kumasi Metropolis. Findings from the study indicate IT capability indirectly affects performance by improving the agility of their business processes. Findings from our study indicates, while the statistical analysis did not find a significant direct moderating influence of market dynamism on the link between IT capability and BPA, it is important to note that the significance of market responsiveness should not be disregarded. Instead, it highlights the need of smes adopting a proactive approach in adapting their strategies and procedures to anticipate market developments. This research is a valuable contribution to the existing body of academic literature and has practical implications for managers of small and medium-sized enterprises (smes) as well as policymakers. By acknowledging the deep relationship between information technology capabilities, the agility of business processes, and the dynamic nature of the market, small and medium-sized enterprises (smes) may get a comprehensive understanding of how to effectively traverse the difficult and multifaceted terrain of contemporary business and cultivate long-term success.
A thesis submitted to the department of the requirement of the award of the degree of masters of business administration (strategic management and consulting)