Organizational mindfulness towards digital transformation as a prerequisite of information processing capability to achieve market agility

Abstract Firms are increasingly transforming themselves into agile enterprise by integrating and exploiting digital technologies. Prior research has suggested organization mindfulness would help proactively manage digital technologies and reduce the possibility of rigidity resulting from digital technologies. Although the key role of organizational mindfulness has been increasingly recognized, the impact of organizational mindfulness towards digital transformation on developing digital technology enabled information processing capacity (IPC) has not been empirically examined. In this study, we conceptualize digital technology enabled IPC based on the information processing view (IPV) and examine the relationships among organizational mindfulness, IPC, and market agility. Empirical findings from our survey of 102 managers of US companies indicates that digital transformation-mindful organizations are more likely to effectively establish a digital technology infrastructure; digital technology-enabled external and internal relationships and digital technology-business strategic alignment which, in turn, enhances their ability to respond to environmental turbulence in the markets promptly.