This study investigates the extent to which service firms exhibit technological readiness across different functional areas under conditions of heightened environmental turbulence. Drawing on the dynamic capabilities perspective, it further examines how function-level technological readiness is associated with changes in organisational processes and key resource categories.
A conceptual framework integrating environmental turbulence, dynamic capabilities, innovation, and technological readiness was developed based on review of the relevant literature. Empirical data were collected through a survey of 307 managers representing service firms. The proposed relationships were examined using multivariate regression analyses.
The findings indicate substantial technology-related adaptation among service firms operating during a period of heightened macroeconomic and technological turbulence, while technological readiness varies considerably across functional areas. Readiness is most strongly developed in customer- and market- oriented functions, whereas changes are particularly visible in coordination- and information-intensive processes. The results further reveal that the relationships between function-level technological readiness and organisational change are configuration-specific, exhibiting both positive and negative associations depending on the process or resource considered. These findings suggest that technological readiness does not operate as a uniformly beneficial organisational attribute but rather as a context-dependent mechanism of adaptation.
Managers should recognise that technological readiness requires cross-functional alignment and coordination to support effective organisational transformation. Investments in technological development should therefore be accompanied by efforts to ensure consistency across functional areas, processes, and resource configurations.
This study extends the literature on environmental turbulence and dynamic capabilities by introducing a function-level perspective on technological readiness. It demonstrates that readiness for technological change constitutes a micro-foundational capability whose association with organisational transformation depends on the configuration of functional areas, processes, and resources. By moving beyond firm-level analyses, the study provides new insights into how service firms adapt to turbulent environments.
