The Mediating Effect of Agility: IT's Impact on Firm Performance among U.S. Manufacturing Firms
Sharon EDeGroote* and Thomas G Marx
College of Management, Lawrence Technological University, 21000 West 10 Mile Road, Southfield, MI 48075 United States
- *Corresponding Asuthor:
- Sharon EDeGroote
College of Management
Lawrence Technological University
21000 West 10 Mile Road
Southfield, MI 48075 United States
E-mail: [email protected]
Received January 15, 2014; Accepted February 17, 2014; Published February 22, 2014
Citation: EDeGroote S, Marx TG (2014) The Mediating Effect of Agility: IT’s Impact on Firm Performance among U.S. Manufacturing Firms. Ind Eng Manage 3:123. doi:10.4172/2169-0316.1000123
Copyright: © 2014 EDeGroote S, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This study investigates the mechanism through which IT affects performance using mediation analysis to determine if agility, the ability to sense and respond to changes in the market, explains “how” or “why” IT affects performance. The results of the mediation analysis are based on data collected from survey responses from 193 U.S. manufacturing firms. Agility as a mediator was investigated using three testing methods: causal steps strategy, product of coefficients, and bootstrapping. Causal steps strategy tested the direct effects using regression analysis, the product of coefficients tested the statistical significance of the mediation effects assuming the coefficients were normally distributed, and bootstrapping tested the significance of the mediation effects without assuming they were normally distributed by creating a distribution of the product of coefficients. The mediation effect using all three tests was demonstrated, providing a robust confirmation that agility mediates the impacts of IT on firm performance.