THE IMPACT OF INFORMATION TECHNOLOGY ON ORGANIZATIONAL FLEXIBILITY

Abstract

This paper argues that information technology can have a significant impact on organizational flexibility. Information technology (IT) contributes to flexibility by 1) changing the nature of organization boundaries and the time at which work takes place and 2) altering the nature and pace of work. IT also has important second and third order impacts on organizations and industries. The paper presents examples to illustrate the impact of information technology on two industries and three companies. The paper concludes that management should consider the use of information technology to increase flexibility and should predict the higher order impact of their actions on the organization and their industry.