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Purpose

This study consolidates and synthesizes existing research on IT-enabled dynamic capabilities (ITDCs), identifying which capabilities have been recognized in the literature and tracing their evolution over time, to offer a structured taxonomy that helps organizations address challenges in leveraging IT for continuous adaptation and co-evolution with organizational change in rapidly shifting environments.

Design/methodology/approach

We conducted a systematic literature review of 58 publications, forming the basis for data assessment.

Findings

Our systematic review reveals five key ITDCs – market sensing, market analytics, innovation, agility enhancement and organizational development – that collectively foster continuous adaptation and strategic renewal in rapidly changing environments.

Practical implications

This study presents a comprehensive taxonomy of ITDCs, which firms can incorporate to adapt and transform, thereby improving their performance in a rapidly changing business environment.

Originality/value

This study comprehensively categorizes ITDCs while demonstrating their crucial role in driving organizational renewal and performance.

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