This study explores the effects of organizational information technology (IT) capability in determining organizational performance and sustainable competitive advantage. Building on the resource-based and knowledge-based views of a firm, the study proposes a theoretical framework. In this framework, organizational IT capability is theorized to strengthen organizational performance and sustainable competitive advantage, directly and indirectly, through organizational knowledge management capabilities. Data collected from the middle and senior managers of diverse organizations in an emerging economy have been used to test the relationships in the framework. To estimate the proposed relationships in the conceptual model, we use structural equation modeling through SmartPLS 3.2. The results confirm that organizational IT capability significantly impacts organizational performance and sustainable competitive advantage. Additionally, organizational knowledge management capabilities partially mediate the relationship between IT capability and the outcomes (i.e., organizational performance and sustainable competitive advantage). The study concludes with a discussion of the implications for academicians and managers.

Purpose: Evolving business landscapes have highlighted the crucial role of innovative digital transformation strategies (DTSs) in reimagining organisational operations and responses to optimise performance, regardless of organisational size or employee composition. The study suggests that DTS is a process that occurs continuously, rather than being a one-time event. It also underscores the critical role of personal resilience and organisational support in achieving job performance goals. Design/methodology/approach: Using a survey analysis, this study examines the impact of organisational response and agility, as fundamental components of DTS, on employees' job performance. In addition, it investigates how boundary conditions of personal resilience and organisational support moderates the relationship between (1) organisational agility and job performance, and (2) organisational response and job performance. Findings: The research findings demonstrate the impact of DTS on job performance. It highlights the mediating roles of organisational support and agility in improving employees' performance. The study also discusses the critical role of personal resilience and organisational support in navigating the insightful impacts of organisational agility and organisational response on the job performance. Originality/value: This paper presents a theoretical framework that integrates the dynamic capabilities of employees and organisations, providing academics and practitioners with a comprehensive perspective on the growth of employees' dynamic capabilities. By offering insightful discussions, the study highlights that, while creating new DTS, organisations not only improve their dynamic capabilities but also enhances the people’s dynamic capabilities and make them more resilient.