The Impact of Information Technology on Organizational Flexibility

Abstract

This paper argues that information technology can have asignificant impact on organizational flexibility. Informationtechnology (IT) contributes to flexibility by 1) changing thenature of organization boundaries and the time when workoccurs 2) altering the nature and pace of work and 3) helpingfirms respond to changing market conditions. But, there arealso aspects of technology which can decrease flexibility, andthere may be second-order impacts of flexibility that are noteasily predicted. Examples to illustrate the impact ofinformation technology on two industries and three companiesare presented. The paper concludes that management shouldconsider the use of information technology to increaseflexibility and suggests strategies for implementing flexiblesystems.

Keywords: Organizational flexibility, Impact of information technology, Implementation, Second order effects