Data from 134 firm and business units is utilized to empirically evaluate the hypotheses derived from this model. The results provide compelling evidence for the mediating effects of these dynamic capabilities. Further, our empirical tests suggest that the mediated effects model is has more validity than a model that posits direct impacts of IT infrastructure capabilities on firm performance. These results have significant implications for future research and practice on how
IT management capabilities contribute to the development of business capabilities and enhancement of firm performance.