Harnessing information system capabilities to enhance organizational agility: the interplay of green absorptive capacity, collaborative knowledge creation, and strategic flexibility

Purpose This study aims to investigate the impact of information system capabilities on organizational agility within the context of Iranian knowledge-based companies. Specifically, it explores the mediating roles of green absorptive capacity and collaborative knowledge creation in this relationship, as well as the moderating role of strategic flexibility on the relationship between green absorptive capacity and organizational agility. Design/methodology/approach This research employs a quantitative methodology, utilizing a structured survey administered to managers in 100 Iranian knowledge-based companies. Data were analyzed using structural equation modeling (SEM) to test the proposed hypotheses and examine the relationships between the variables. Findings The results indicate that information system capabilities significantly enhance both green absorptive capacity and collaborative knowledge creation. Additionally, green absorptive capacity and collaborative knowledge creation are found to positively influence organizational agility. The study confirms that the relationship between information system capabilities and organizational agility is partially mediated by both green absorptive capacity and collaborative knowledge creation. The results also indicate that strategic flexibility does not moderate the relationship between green absorptive capacity and organizational agility. Research limitations/implications The study is limited by its focus on Iranian knowledge-based companies, which may affect the generalizability of the results to other geographical contexts. Future research could explore longitudinal design to better understand the evolving dynamics of these relationships. Practical implications The findings of this study highlight the critical role that information system capabilities play in enhancing organizational agility within knowledge-based companies in Iran. By fostering green absorptive capacity and facilitating collaborative knowledge creation, companies can better respond to dynamic market conditions and adapt to changes. Managers should prioritize the development of robust information systems that not only support green initiatives but also encourage teamwork and knowledge sharing among employees. While strategic flexibility may not directly influence the green absorptive capacity-agility relationship, organizations should remain aware of its importance in shaping overall responsiveness. Ultimately, this research emphasizes the need for a holistic approach that integrates information systems with environmental and collaborative strategies to bolster agility in a challenging economic landscape. Social implications The findings of this study underscore significant social implications for the Iranian technology sector, particularly in fostering a culture of innovation and sustainability. By highlighting the crucial role of information system capabilities in enhancing both green absorptive capacity and collaborative knowledge creation, the research advocates for a shift towards more environmentally conscious and cooperative practices within organizations. This shift not only aims to improve organizational agility but also contributes to broader societal goals such as sustainable development and social responsibility. In a context marked by economic challenges and sanctions, promoting these values can empower knowledge-based companies to adapt and thrive, ultimately benefiting the workforce, community, and environment. By investing in these capabilities, organizations can enhance their resilience and contribute positively to the socio-economic landscape, encouraging a more innovative and sustainable future. Originality/value This paper contributes to the literature on information systems and organizational agility by providing empirical evidence of the mediating roles of green absorptive capacity and collaborative knowledge creation, along with the moderating role of strategic flexibility in knowledge-based firms in Iran. No prior research has examined the simultaneous effects of these factors on the relationship between dynamic capabilities, like information system capability, and organizational agility. Additionally, previous studies have largely focused on developed countries, making this investigation of a developing economy impacted by sanctions particularly relevant, as it may challenge previously established relationships.