IT capability, strategic flexibility and enterprise performance: The empirical evidence from the manufacturing enterprises in Pearl River Delta

Utilizing the model of the relationships among IT capability, strategic flexibility, non-financial performance and financial performance, we carry out an empirical research based on a sample of the manufacturing enterprises in Pearl River Delta. Then strategic flexibility is classified as proactive flexibility and reactive flexibility to conduct further analyses, which help us find out more details about the relationships linking IT capability to financial performance. Results indicate that, in general, IT capability and strategic flexibility are both positively related to non-financial performance, and IT capability is positively related to strategic flexibility, and non-financial performance is positively related to financial performance. From further analysis, IT capability is found to be positively related to proactive flexibility and reactive flexibility, which are both positively related to non-financial performance. Especially, proactive flexibility is found to be positively related to reactive flexibility, which is out of our expectation.