Purpose Digital advancements have altered how companies collect, process, and interpret information about the environment, enabling them to better adapt. Through the lens of information processing, this paper examines how organizations achieve adaptive performance in navigating a brittle environment in the digital era. Design/methodology/approach The study utilizes data from a cross-sectional questionnaire survey of 293 medium- and large-sized companies, employing the Partial Least Squares-Structural Equation Modeling (PLS-SEM) technique. Findings We reveal the nuanced role of digitally enabled scanning and an analytical culture in how companies successfully adapt to their environment. We also argue that this does not eliminate, but rather reshapes, the role of top management in scanning the environment and interpreting the collected information. Moreover, our findings suggest that this adaptive performance may not necessarily yield immediate financial benefits. Originality/value By emphasizing the role of digitally enhanced organizational information processes, our insights extend the discourse on adaptive mechanisms and information management. Our results challenge adaptation theories that focus on individual capabilities by refuting the prevailing notion that employee-level adaptive capacity ensures better adaptation at the organizational level.
Szukits et al. (Thu,) studied this question.