Digital technology is increasingly important in enhancing organizational agility (OA). Institutional theory and resource-based view were harmonized to analyze firms' adoption of digital technologies. However, previous studies on OA have revealed that external pressures imply the imposition of barriers or technological standards that ultimately restrict OA. This study employs this double theoretical lens to investigate the mediation role of business analytics capability (BAC) in the relationship between co-innovation (CO), i.e. open innovation in digital platforms, and OA, as well as the negative moderating effect of external pressure for artificial intelligence adoption (EPAIA) on this mediation.
Structural equation modeling was used to test the moderated mediation with survey data from 229 firms.
The main result indicates that 72% of OA variance is explained by the effect of CO that is transmitted by the mediator (BAC). However, contrary to the authors' expectations, EPAIA only has a positive moderating effect along the path between BAC and OA.
This work contradicts the prevalent notion of the negative consequences of external pressures for artificial intelligence adoption. Specifically, this study's findings refute the notion that institutional pressures are the source of technical problems that disrupt CO and BAC integration and reduce OA. In contrast, the unexpectedly positive effect of EPAIA may indicate that this type of external pressure can be viewed as a significant sign and an opportunity for the company to adopt the industry's most advanced and effective digital transformation practices.
