Modelling the Effects of Intangible Capabilities on ERP Implementation

Enterprise resource planning (ERP) system is well recognised as a key technological infrastructure that facilitates business operations and growth in a dynamic business environment. Implementation of ERP system however is mirrored by numerous problems, a fact well cited in many academic studies. Research addressing the reasons for ERP implementation problems has identified a plethora of success factors. Following a similar research direction, we leveraged on the resource based view (RBV) to investigate the effects of firms’ capacity to deploy intangible resources with valuable and inimitable characteristics (termed as intangible capabilities) on successful ERP implementation. Three intangible capabilities were assessed, i.e. governance, knowledge and relationships. Using data collected from a survey with service firms in Malaysia, we found evidence that relationships capability effect towards successful ERP implementation was direct and significant. Further analysis revealed that governance capability reinforces the effects of knowledge and relationship capabilities toward successful ERP implementation. The empirical findings suggest that successful ERP implementation lie at the firms’ capacity to deploy and reconfigure their intangible capabilities of valuable and inimitable characteristics to create reinforcing superseding effects. We conclude that governance capability plays the antecedent platform role to strengthen the effects of knowledge and relationships capabilities on ERP project’s success

Analysis of ICT governance initiatives as a mechanism to enhance corporate governance, with particular reference to Nelson Mandela Bay Municipality

Developing countries such as South Africa have a tremendous potential for rapid and sustainable economic and social development by leveraging the benefits and advantages of Information and Communication Technology (ICT) and applying it appropriately within the local government sector. As such, the Local Government Turnaround Strategy’s (LGTAS) vision states that: Each municipality must have the necessary ICT infrastructure and connectivity; and that ICT systems must be put in place across all municipalities to accelerate service delivery, and improve efficiency and accountability. However, technology on its own cannot achieve much; it must be supported by capable people and tested processes to provide services in which the public can have confidence. Disparities, both from within the municipal sector as well as in the larger South African ICT landscape, have influenced the manner in which municipalities make use of ICT. Nevertheless, it has been observed that despite the use of ICT, there has been a lack of utilising ICT governance to enhance corporate governance in the public sector, particularly in municipalities. In this study, an analysis was made of ICT governance initiatives, as a mechanism to enhance corporate governance, with particular reference to the Nelson Mandela Bay Municipality (NMBM) in the Eastern Cape. The research itself has identified risk levels that exist as a result of the lack of ICT governance and risk management. The respondents were given an opportunity to agree or disagree with statements regarding the state of ICT provision and support, corporate governance and other elements within the institution. The researcher has formulated recommendations to solve identified problem based in the research results in ICT governance and corporate governance. While governance developments have primarily been driven by the need for transparency regarding enterprise risks and the protection of shareholder value, the pervasive use of technology has created a critical dependency on ICT that calls for a specific focus on ICT governance. ICT governance is part of corporate governance,which is the responsibility of the organisation’s top executive, to ensure that its information technology supports the goals and objectives of the organisation, through a variety of structural mechanisms, processes and mechanisms for communication. Fundamentally, ICT governance is concerned with whether ICT is delivering value and the management of ICT risks, driven by a strategic alignment between business and ICT, resources management and performance management. The corporate governance of ICT involves evaluating and directing the plans for the use of ICT to support the Institution and monitoring these. It includes the strategy and policies for using ICT within the institution. The executive authority and executive management are accountable and responsible for ensuring that the governance of ICT is implemented in the institution in line with this framework