IMPLEMENTATION KNOWLEDGE AND THE ASSIMILATION OF ENTERPRISE INFORMATION SYSTEMS: AN EMPIRICAL STUDY

Based on the organizational learning perspective, we present an empirical model to explain the assimilation of complex enterprise systems. We conceptualize systems implementation capability of organizations in terms of two types of knowledge – artifactual knowledge and inter-unit coordination knowledge. We propose that these knowledge dimensions are directly related to the degree of assimilation of enterprise systems. Further, considering that assimilation of IT innovations is steeped in the institutional environment, we also consider the moderating effects of mimetic and normative institutional pressures on the relationship between implementation knowledge and the degree of assimilation. Analysis of survey responses from ERP implementations in seventy-seven organizations reveals support for our main hypotheses that both the implementation knowledge dimensions directly affect assimilation. We also confirm that while mimetic institutional pressures positively moderate the impact of ERP-specific artifactual knowledge on assimilation, normative influences positively moderate the effect of ERP-specific coordination knowledge on assimilation. However, surprisingly mimetic pressures negatively moderate the impact of ERP-specific coordination knowledge on assimilation. The negative moderation suggests that organizations with greater interunit coordination knowledge are more ‘mindful’ towards ERP assimilation and therefore mimetic pressures play a lesser role in affecting assimilation levels. Our findings offer interesting implications for theory and practice

Enterprise Resource Planning (ERP) Systems and the Manufacturing-Marketing Interface: An Information Processing Theory View

The manufacturing-marketing (MM) interface has received substantial consideration in the operations management literature; however, relatively little attention has been paid to the role of information systems in facilitating MM integration. As integrated cross-functional systems, enterprise resource planning systems (ERP) are well-suited to provide MM integration. Based on information processing theory, the central proposition of this paper is the greater the interdependence between manufacturing and marketing, the greater the benefit of ERP. Specifically, H1 states that the greater ERP-enabled coordination between manufacturing and marketing, the greater the benefit of ERP to the plant. H2 states that the degree to which ERP-enabled manufacturing-marketing coordination improvements are realized, depends on the amount of interdependence between manufacturing and marketing. Using multiple regression, the model is tested on survey data from 107 manufacturing plants running ERP. The data support H1 and H2. These findings support the general proposition that interdependence between functions is one factor that influences the degree to which organizations reap benefits from their ERP investments. Based on the ERP literature, the model controls for the amount of time that ERP has been running in the plant; This factor was found to be insignificant in the model. However, exploratory analysis finds that time is associated with other ERP benefits

The Strategic Balance of Centralized Control and Localized Flexibility in Two-Tier ERP Systems

Two-tier ERP systems are an increasingly popular technology strategy for large, multinational enterprises. This paper examines how two-tier ERP enables organizations to balance centralized control and coordination at the corporate level with localized flexibility and responsiveness at the division/subsidiary level. The tier 1 ERP system handles core tasks like HR, finance, and IT using highly customized solutions tailored to the large corporate entity's needs, scale, and sophistication. This promotes enterprise-wide process standardization and centralized control. Meanwhile, the tier 2 ERP systems utilized by smaller subsidiaries and regional offices are less resource intensive and more configurable to address localized requirements. Tier 2 gives local divisions more control over their ERP to enable flexibility and responsiveness. This research analyzes the key drivers pushing large multinationals towards two-tier ERP, including managing complexity across global operations, enabling centralized coordination while allowing localization, integrating dispersed IT infrastructures, and controlling implementation costs. The paper explores the unique characteristics and benefits of tier 1 and tier 2 ERP systems in depth, providing concrete examples. Critical considerations for successfully deploying two-tier ERP are also examined, such as integration, change management, and striking the right balance between standardization and localization. The conclusion reached is that two-tier ERP delivers important synergistic benefits for large enterprises through its centralized/decentralized dual structure. The tier 1/tier 2 approach balances the key needs for coordination and control at the center with flexibility at the edges. However, careful planning is required for effective two-tier ERP implementation. The optimal balance between standardization and localization must be struck to fully realize the strategic potential. This research provides important insights for both academic study and real-world application of two-tier ERP systems

Adapting ERP Systems in the Post-implementation Stage: Dynamic IT Capabilities for ERP

Background: Firms recently rely on enterprise systems, such as enterprise resource planning (ERP), to integrate, automate, and support business strategy and operations. However, uncertain environments require firms continuously adapt their ERP systems to meet changing business demands in the post-implementation stage. What capability can drive ERP post-implementation adaptation (PIA) deserves further research. Based on the dynamic capabilities view, we propose that dynamic IT capabilities for ERP, namely IT sensing, IT learning, IT integration, and IT coordination capability, can drive ERP-PIA. Method: A cross-sectional and matched-pair mail survey of both business and IS executives was administrated for collecting data from the top 1,000 manufacturing firms in Taiwan. Partial least squares structural equation model (PLS-SEM) was constructed for measurement validation and hypotheses testing. Results: Based on 128 samples (74 firms), our findings demonstrate the importance of the dynamic IT capabilities for achieving higher levels of ERP-PIA. ERP-PIA can facilitate greater organizational benefits from system use. Conclusions: This study conceptualizes and empirically demonstrates the importance of ERP-PIA, which provides a specific example of IT/IS adaptation. This study also conceptualizes dynamic IT capabilities for ERP, and theorizes how these capabilities interact to enable firms to adapt ERP systems to fulfill the emergent demands. This study improvs the understanding of the roles of dynamic IT capabilities for ERP in enabling ERP-PIA and organizational benefits through a richer theoretical framing than that of prior studies. Available at: https://aisel.aisnet.org/pajais/vol12/iss1/2

Workflow Integrated ERP: An Architecture Model for Optimized Coordination of Intra- and Interorganizational Production Planning and Control

Although coordination deficiencies in production planning and control (PPC) systems, which are a subset of enterprise resource planning (ERP) systems, still exist and even increase with progressing intra-organizational cooperation, workflow management systems (WfMS) could not yet be successfully established in PPC processes. This can be attributed to the complex structures of PPC tasks and the data they process, posing significant conceptual and technical problems to coupling ERP/PPC systems with other coordinating systems. Nevertheless, coordination mechanisms provided by workflow management technology and PPC functionality can complement each other. To that end, a workflow management system must fully “comprehend” the planning and control logic of industrial processes. This includes domain-specific knowledge on interdependencies of planning tasks, resources and capacity. On the other hand, PPC systems must cede some of their coordinating functions to the WfMS. Starting from a comparison of coordination in PPC systems and in WfMS, the paper suggests a model of integrated coordination of PPC processes by means of workflow management. The model is presented both on architectural and on detailed level, and is exemplarily applied to an order scheduling process

The Impact of Enterprise Resource Planning Systems on Firm Performance

Debate exists regarding the contribution of information technology to firm performance. Prior research has examined technology and firm performance in the aggregate. This study, however, focuses on a specific technology—enterprise resource planning (ERP)—and its impact on firm performance. Economic and industrial organization theories are used to predict how ERP technology should affect firm coordination and transaction costs. ERP is expected to (1) reduce costs by improving efficiencies through computerization and (2) enhance decision making by providing accurate and timely enterprise-wide information. These effects should be associated with improved firm performance. This issue is examined empirically using archival financial data of COMPUSTAT firms that have implemented ERP systems compared to control firm counterparts. Results indicate a significant increase in costs as a percentage of revenue but a decrease in the number of employees as a percentage of revenue the year after ERP implementation. However, control firms experience a greater reduction in employees. Results indicate a paradox where firms having fewer employees supporting more revenue simultaneously experience higher cost to revenue ratios after their ERP implementation

Primjena ERP sustava za poboljšanje koordinacije internog dobavljačkog lanca

In today\u27s competitive global market, one of the most effective ways towards achieving competitive advantage has been the ability to accelerate the supply chain process through ERP (Enterprise Resource Planning) systems. ERP enables a more efficient internal and external supply chain. Enterprise resource planning system is an information system that manages all aspects of a business (production planning, sales, distribution, accounting, purchasing and customer services). Planning system is the core of an ERP system. The aim of this paper is to propose a hierarchical planning and scheduling model based on just-in-time principle to improve internal supply chain coordination for one-piece and small batch production. The model is implemented into the system ERPINS (Enterprise Resource Planning ININ Solutions) that is developed for metal processing industry, wood and food processing industry and construction industry.Na današnjem konkurentnom globalnom tržištu jedan od najučinkovitijih načina postizanja konkurentne prednosti je sposobnost ubrzanja procesa dobavljačkog lanca pomoću ERP (Enterprise Resource Planning) sustava koji omogućava učinkovitiji interni i eksterni dobavljački lanac. Enterprise resource planning sustav je informacijski sustav koji upravlja svim aspektima poslovanja (planiranje proizvodnje, prodaja, distribucija, računovodstvo, nabava i korisničke usluge). Sustav planiranja je glavni dio ERP sustava. Cilj ovog rada je dati model višerazinskog planiranja i terminiranja koji je zasnovan na just-in-time principu sa svrhom poboljšane koordinacije internog dobavljačkog lanca za pojedinačnu i maloserijsku proizvodnju. Model je primijenjen u sustavu ERPINS (Enterprise Resource Planning ININ Solutions) razvijenom za metaloprerađivačku, drvnu, prehrambenu i građevinsku industriju

Evaluating the effects of ERP systems on performance and management accounting in organizations

Coordination of operation and information in order to elevate the efficiency is one of the processes in organizations and often has been accompanied with resorting to IT in a large scale. Organizations have implemented Enterprise Resource Planning (ERP) systems due to problems posed by separated systems. The aim of this research is to study whether ERP systems cause increasing performance efficiency and changing management practices in organization. In addition, the role of management accountants have been examined to find out that whether they are gaining new roles within organization and whether their work content has changed after the ERP implementation. The research is conducted with a survey questionnaire. The sample consists of 50 knowledgeable persons in organizations that have implemented ERP systems. Results indicated that ERP systems have had an impact on organization performance, accountants and management accounting. These systems provide more real-time and accurate information to budgets and techniques, and organizations have also introduced advanced management accounting techniques after the implementation. As regards the time use of accountants, the results exhibit that the respondents have used less time on their routine work after the ERP implementation. This extra time is devoted on interpreting data and performance evaluation and other tasks. Finally, accountants in the study consider that the implementation of ERP systems has made skills such as, IT skills and knowledge of other functional areas more important

Evaluating the effects of ERP systems on performance and management accounting in organizations

Coordination of operation and information in order to elevate the efficiency is one of the processes in organizations and often has been accompanied with resorting to IT in a large scale. Organizations have implemented Enterprise Resource Planning (ERP) systems due to problems posed by separated systems. The aim of this research is to study whether ERP systems cause increasing performance efficiency and changing management practices in organization. In addition, the role of management accountants have been examined to find out that whether they are gaining new roles within organization and whether their work content has changed after the ERP implementation. The research is conducted with a survey questionnaire. The sample consists of 50 knowledgeable persons in organizations that have implemented ERP systems. Results indicated that ERP systems have had an impact on organization performance, accountants and management accounting. These systems provide more real-time and accurate information to budgets and techniques, and organizations have also introduced advanced management accounting techniques after the implementation. As regards the time use of accountants, the results exhibit that the respondents have used less time on their routine work after the ERP implementation. This extra time is devoted on interpreting data and performance evaluation and other tasks. Finally, accountants in the study consider that the implementation of ERP systems has made skills such as, IT skills and knowledge of other functional areas more important

Evaluating the effects of ERP systems on performance and management accounting in organizations

Coordination of operation and information in order to elevate the efficiency is one of the processes in organizations and often has been accompanied with resorting to IT in a large scale. Organizations have implemented Enterprise Resource Planning (ERP) systems due to problems posed by separated systems. The aim of this research is to study whether ERP systems cause increasing performance efficiency and changing management practices in organization. In addition, the role of management accountants have been examined to find out that whether they are gaining new roles within organization and whether their work content has changed after the ERP implementation. The research is conducted with a survey questionnaire. The sample consists of 50 knowledgeable persons in organizations that have implemented ERP systems. Results indicated that ERP systems have had an impact on organization performance, accountants and management accounting. These systems provide more real-time and accurate information to budgets and techniques, and organizations have also introduced advanced management accounting techniques after the implementation. As regards the time use of accountants, the results exhibit that the respondents have used less time on their routine work after the ERP implementation. This extra time is devoted on interpreting data and performance evaluation and other tasks. Finally, accountants in the study consider that the implementation of ERP systems has made skills such as, IT skills and knowledge of other functional areas more important