Determinants of SaaS ERP Systems Adoption

ERP systems are now offered on the cloud under Software as a Service (SaaS) model. For small and medium sized enterprises (SMEs), this is considered the best opportunity to take advantage of the capabilities of an Enterprise Resource Planning (ERP) system without the investment and management costs associated with the on-premise model. This study investigates the factors influencing the adoption of SaaS ERP system by SMEs. Using a cross-sectional field study conducted across four major case study organizations and software vendors, this study identifies the determinants for the adoption decision and analyses benefits and challenges. According to study, low total cost of ownership, low initial investment costs, potential willingness of the vendor to participate in co-creation of value for customers, continuous improvement of the product offerings and generic benefits of implementing an integrated ERP system are determinants of SaaS ERP adoption decisions by SMEs. Competitive pressures faced by the enterprise, external factors, concerns on the security and integrity of data have no influence on adoption decision, according to this study. Instead, SaaS ERP vendor’s long term reputation, promised shorter deployment time, total cost of ownership, willingness to listen and continuously improve the product, vendor’s ability and willingness to support customers throughout the product life cycle are the factors that would attract SMEs towards SaaS ERP systems

The mediating role of organizational learning between absorptive capacity and performance in companies employing enterprise resource planning software

This dissertation focuses on the acquisition of information systems technology and how the acquisition of information systems (IS) can improve the performance of a firm. The central purpose of this dissertation is to contribute to the literature that explains the success of IS projects. It addresses the organizational processes that contribute to the successful implementation of IS, and explains why some organizations achieve financial returns and strategic advantages from their IS efforts while others do not. The population in this dissertation consists of top level IS executives in the US or Canada employed in firms who have implemented enterprise resource planning software. Enterprise resource planning (ERP) has the capability to join disparate data sources and make them available across enterprises in an organized, personalized, secure, and searchable fashion. ERP integrates key business and management processes to provide a comprehensive view of an organization. The term used in the literature to refer to firm readiness to technological advances is absorptive capacity. Absorptive capacity is an organizational, firm-level construct that incorporates a learning curve into the technology adoption process. Cohen and Levinthal (1990) define absorptive capacity as the firm\u27s ability to perceive value in external information, in this case an information system, and be able to adopt it, internalize it and exploit it to maximize profits. This dissertation tests the relationship between absorptive capacity and performance mediated by organizational learning. Absorptive capacity, therefore, is a measure of potential increase in performance but not a guarantee of increased performance. Several processes have to occur in order for organizations to learn. First of all, organizations have to acquire knowledge by eliciting or sharing knowledge (Argote, 1999) in the assimilation stage (Lane et al., 2001; Lane & Lubatkin, 1998). This stage is followed by a second stage named internalization or integration (Kim, 1998; Lyles & Salk, 1996). Group learning involves the processes through which members share, generate, evaluate and combine knowledge (Argote, 1999). The third stage, optimization, is where an organization reaches the point of exploitation of a learned technology (Cohen & Levinthal 1990, 1994). The relationships between absorptive capacity, organizational learning and performance represent the research framework for the dissertation. A path begins from absorptive capacity to organizational learning, but because organizational learning is divided into three stages there are three separate paths leading to each level in organizational learning: assimilation, integration and optimization. Structural equation modeling was used to examine the series of dependence relationships simultaneously

Diagnosing performance management and performance budgeting systems: A case study of the U.S. Navy

We present here a case study of an organization within the U.S. Navy that created a new organizational construct and performance management system. We explore the issues faced by naval leaders as they attempt to use their performance information to make resource allocation decisions at the sub-organization level, and base budgets at the organization and service (navy) level. We attempt to diagnose many of the practical problems a government organization encounters when implementing a performance management system, to include trying to inform budgets, and make recommendations on actions that would improve the strength of the performance system. We find in the organization a good conceptual framework, organizational enthusiasm, and reasonable attempts to link disparate information systems into a coherent whole. The good intentions are hindered, however, by inadequate accounting systems, a lack of understanding of cost accounting methods, weak use of terminology and longstanding institutional attitudes. This case confirms challenges associated with both performance management systems and performance budgeting found in the literature, and we offer recommendations for public officials considering such endeavors

Deploying Process Innovation in Manufacturing

Manufacturing companies are increasingly under pressure to innovate due primarily to the intense competition they face, particularly under global market conditions. Innovation is recognised as a precondition for survival. Implementation of innovative initiatives in manufacturing is an important and challenging phase of process innovation. This is more so in the pre-implementation phase, in which manufacturing organisations need to prepare and be appropriately ready to deploy their process innovation initiative. This thesis focuses on the methodology of deploying process innovation in manufacturing to identify the factors influencing deployment readiness, evaluate hypothesised influences of some of the factors on deployment readiness, and provide an accessible method of assessing deployment readiness levels. Several important results and significant contributions to knowledge are arising from the research reported in this thesis. The thesis reports on the findings that several factors can influence deployment process innovation which is characterised along the dimensions of context for process innovation, performance, capability and capacity, resources, and collaboration. Through developing and evaluating a conceptual framework for process innovation deployment readiness, the thesis found a significant positive link between process innovation deployment preparedness and being fully ready to deploy. It was also found that having a deployment plan has a significant positive influence on being fully ready to deploy process innovation. These results have important implications for manufacturing managers, especially regarding the need for a deployment plan, ensuring a good climate for innovation, and being prepared to deploy process innovation in manufacturing. Perspectives of manufacturing managers reported in the thesis indicate that manufacturing companies do not necessarily need to attain a 100% deployment readiness level. On average, the companies appear satisfied with about 70% deployment readiness level. A fuzzy logic method for assessing manufacturing process innovation deployment readiness level presented in this thesis will help manufacturing companies gauge their readiness level and identify areas of improvement should they wish to increase their deployment readiness level prior to implementation. The method was validated in a case study company and found useful. The thesis concludes by reinforcing the need for manufacturing companies to rely more on appropriate techniques, such as those arising from this research, for use in successfully managing the deployment of their process innovation initiatives

Proposal and validation of an industry 4.0 maturity model for SMEs

Purpose: This paper seeks to establish an Industry 4.0 maturity model for manufacturing SMEs. Thisresearch presents the characteristics of the proposed model, which takes the elements and the scope of thefourth industrial revolution, as well as the dimensions and assessment scales of some maturity modelsalready applied. Likewise, this document shows the modelling process and the model’s validation in SMEsin the city of Bogotá-Colombia.Design/methodology/approach: To determine the criteria of the maturity model, 6 major stages havebeen established: Literature Review, Development of the model; Validation of the model; Application ofthe model; Data analysis; and Conclusion and Recommendations. Findings: Considering the validation of some maturity models shown in the literature review, and alignedwith the purpose of this article, 8 dimensions have been established to measure the maturity level ofSMEs: Service; Operations; Quality; Products; Documented information- Big Data; Leadership andstrategy; Communication; and Culture and people. A model has been generated that allows evaluating thedegree of compliance in each dimension for manufacturing SMEs. The model can be applicable tocompanies in any industry. Also, it can determine the degree of implementation compliance of companiesin the same sector.Research limitations/implications: According to the literature reviewed, SMEs, especially those in LatinAmerica, still do not have a culture of applying the elements of Industry 4.0. Therefore, in the research, itwas not easy to understand the intrinsic variables of Industry 4.0 that SMEs have applied in different areas,which does not allow us to have the current context of SMEs and from that perspective to have a bettersimulation of the business model maturity.Practical implications: The model presented in this document serves as a basis for SMEs in LatinAmerica to establish a baseline measurement in relation to the application of Industry 4.0 elements incompanies.Social implications: What is intended with this work is to frame a baseline so that companies canunderstand their current maturity level in the terms that industry 4.0 could cover. Likewise, they cangenerate actions for the appropriation of new technologies that allow them to be more competitive. Thisdocument can be taken and applied by those entrepreneurs companies who wish to measure theiroperations.Originality/value: The essential point for the generation of the maturity level measurement model isfocused on determining the necessary dimensions on which the evaluation is based. In the literature found,most models focus their dimensions on measuring the digital in their processes and tangentially evaluate the organizational structure and the relationship between them. Additionally, the authors who address theorganization as a whole do not reveal the details for SMEs to self-evaluate. The models found have onlybeen implemented to evaluate one company along or individually. This model presents the coredimensions holistically and explicitly, taking important criteria such as quality, service, communication, andthe culture of all employees. Additionally, it shows in detail the model that allows to SMEs of themanufacturing sector to self-assess themselves in each dimension and in turn the degree of the businesssector in which they are or belongPeer Reviewe

Industry 4.0 for SMEs

This open access book explores the concept of Industry 4.0, which presents a considerable challenge for the production and service sectors. While digitization initiatives are usually integrated into the central corporate strategy of larger companies, smaller firms often have problems putting Industry 4.0 paradigms into practice. Small and medium-sized enterprises (SMEs) possess neither the human nor financial resources to systematically investigate the potential and risks of introducing Industry 4.0. Addressing this obstacle, the international team of authors focuses on the development of smart manufacturing concepts, logistics solutions and managerial models specifically for SMEs. Aiming to provide methodological frameworks and pilot solutions for SMEs during their digital transformation, this innovative and timely book will be of great use to scholars researching technology management, digitization and small business, as well as practitioners within manufacturing companies

Integrating innovation: South Australian entrepreneurship systems and strategies

South Australia is a small economy that faces a fundamental need to re-shape its approach to innovation. The manufacturing sector, as the backbone of the state’s economy, has and will continue to change in its nature and form. This necessitates a re-think about how innovation happens and how the respective actors within an economy interact and engage with each other. In effect, innovation relies on intersections between people, knowledge, information sharing, ideas, financial and other resources. Innovation happens through regional social and economic system dynamics; innovation relies on a system view of entrepreneurship. Entrepreneurship can be taken as a study of the entrepreneur and new business creation. However, this conception of entrepreneurship misses the critical link to economic outcomes; the ebb and flow of social and economic fortunes that are underpinned by the actions, reactions and engagement of individuals in a specific social and economic system that brings about innovation and change. In this book the authors are exploring how the linkages within the system can be conceptualised and made transparent.Göran Roos and Allan O’Conno