Abstract Grounded on dynamic capabilities theory and the view of a hierarchy of capabilities, this study proposes that IT capabilities (IT integration and IT reconfiguration) affect market responsiveness through absorptive capacity, and market turbulence may positively moderate the relationship between IT capabilities and absorptive capacity. Based on data collected from 203 firms, the empirical results show that absorptive capacity mediates the relationship between IT capabilities and market responsiveness. Furthermore, market turbulence positively moderates the relationship between IT integration and absorptive capacity. However, it has no effect on the relationship between IT reconfiguration and absorptive capacity.
|