Colocation as a hybrid ICT sourcing strategy to improve operational agility

Fast access to communication networks and the availability of high-performance information and communication technology (ICT) infrastructures is indispensable for accelerating business transactions. Yet with increased environmental volatility, companies need to become more agile in identifying and responding to market- and technology-based challenges. Accordingly, a responsive and high-performance ICT infrastructure remains a top priority for firms. Thus, new ICT sourcing strategies may lead to significant competitive advantages, especially in dynamic business environments.This article analyzes a hybrid ICT sourcing strategy called colocation that allows firms to operate their own ICT resources in facilities of specialized data center providers. Grounded in the theory of dynamic capabilities, we theorize and empirically examine how colocation and top management support enable firms to improve their operational agility in the presence of environmental turbulence.