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 when work occurs 2) altering the nature and pace of work and 3) helping firms respond to changing market conditions. But, there are also aspects of technology which can decrease flexibility, and there may be second-order impacts of flexibility that are not easily predicted. Examples to illustrate the impact of information technology on two industries and three companies are presented. The paper concludes that management should consider the use of information technology to increase flexibility and suggests strategies for implementing flexible systems.