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By conducting moderation mediation analyses, we investigate how IT human capability (ITHC) and IT flexibility—independently and jointly—influence the formation of IT-enabled dynamic capabilities (ITDC). In this paper, we also analyze the influence of different environmental conditions on the relationship between ITHC and ITDC. We do so by empirically testing the constructed model on a dataset of 97 international firms, using the PROCESS technique. We draw upon the dynamic capabilities view and modular system theory, which emphasize the need for a firm to develop ITDC to respond to changes. Currently, there is a gap in the literature concerning the role of ITHC on the formation of ITDC. Our results show that there is a positive effect of ITHC and IT flexibility on the formation of ITDC. Hence, organizations should invest in their ITHC and IT flexibility to address the rapidly changing business environment.

The impact of IT human capability and IT flexibility on IT-enabled dynamic capabilities