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This study investigates how to leverage information technology (IT) capability to build organizational agility in the context of product innovation. A moderated mediating model is proposed from the capability‐building processes perspective. The data collected from 194 senior executives of firms in China show that knowledge management capability partially mediates the relationship between IT capability and organizational agility. Innovative climate also positively moderates the indirect relationship between IT capability and organizational agility in the context of product innovation. Discussion, implications, and direction for future research are offered at the end of this paper.
Cai et al. (Fri,) studied this question.