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The effect of digitization on agility under environmental uncertainty

Author

Listed:
  • Umran Guler

    (Canakkale Onsekiz Mart University / Turkiye)

  • Rukiye Sonmez

    (Canakkale Onsekiz Mart University / Turkey)

Abstract

Digitalization, although seen as an important tool for gaining a competitive advantage in today’s world, companies seem to have a dilemma regarding whether to digitize or not. Particularly in environmental uncertainty, being competent, flexible, and able to respond rapidly, in other words, being agile, has become expected in a competitive environment. Therefore, this study questions whether digitalization and environmental uncertainty affect agility. The banking sector, which is required to accelerate the digitalization process under environmental changes, was selected as the research sample. A total of 262 questionnaires were collected. The models were tested using the variance-based structural equation modeling approach to examine the effects among variables. SmartPLS 3.4 statistical package program was used for model testing. As a result, it was found that digitalization influences agility through environmental uncertainty, affecting competency, flexibility, responsiveness, and quickness dimensions.

Suggested Citation

  • Umran Guler & Rukiye Sonmez, 2023. "The effect of digitization on agility under environmental uncertainty," JOURNAL OF LIFE ECONOMICS, Holistence Publications, vol. 10(4), pages 233-245.
    • Handle: RePEc:jle:journl:jlecon2149
    DOI: 10.15637/jlecon.2149
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