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Dynamic capabilities theory emerged as a leading framework in the process ofvalue creation for firms. Its core notion complements the premise of theresource-based view of the firm and is considered an important theoretical andmanagement framework in modern information systems research. However, despiteDCTs significant contributions, its strength and core focus are essentially inits use for historical firm performance explanation. Furthermore, valuablecontributions have been made by several researchers in order to extend the DCTto fit the constantly changing IT environments and other imperative drivers forcompetitive performance. However, no DCT extension has been developed whichallows firms to integrally assess their current state of maturity in order toderive imperative steps for further performance enhancements. In light ofempirical advancement, this paper aims to develop a strategic alignment modelfor IT flexibility and dynamic capabilities and empirically validates proposedhypotheses using correlation and regression analyses on a large data sample of322 international firms. We conjecture that the combined synergetic effect ofthe underlying dimensions of a firms IT flexibility architecture and dynamiccapabilities enables organizations to cope with changing environmentalconditions and drive competitive firm performance. Findings of this studysuggest that there is a significant positive relationship between the firmsdegree of strategic alignment defined as the degree of balance between alldimensions and competitive firm performance. Strategic alignment can,therefore, be seen as an important condition that significantly influences afirms competitive advantage in constantly changing environments. The proposedframework helps firms assess and improve their maturity and alignment of ITflexibility and dynamic capabilities.

Strategic alignment between IT flexibility and dynamic capabilities: an empirical investigation