Is Implementing ERP Like Pouring Concrete Into a Company? Impact of Enterprise Systems on Organizational Agility

Literature is divided on whether enterprise systems promote or hinder organizational agility. To the best of our knowledge, this paradox has never been rigorously theoretically analyzed nor empirically investigated. This paper seeks to address this paradox by leveraging upon innovation assimilation literature and knowledge based and capabilities based views of organizations. We propose a theoretical framework of the effects of ERP assimilation on agility. We also theorize that the dynamic capability of systems agility not only has a direct effect on organizational agility, but also moderates the effect of ERP assimilation levels on agility. We validate the proposed framework by conducting a cross-sectional survey across 215 organizations. The results validate our key theoretical claims: higher ERP assimilation levels positively influence organizational agility. Moreover, systems agility acts as a critical enabler by amplifying the net positive impact of ERP assimilation on organization agility in addition to having a strong direct effect

Technological Antecedents of Organizational Agility: PLS SEM Based Analysis Using IT Infrastructure, ERP Assimilation, and Business Intelligence

Organizations often ignore the use information technology infrastructure, Business Intelligence and ERP software to improvise their decision making process due to which organizational agility is suffered. Such organizations fail to make decisions according to the needs of the market that leads to the loss of market share. Based on the contingency theory, conceptual model of this study was developed using the constructs of IT Infrastructure Flexibility, Business Intelligence Use, ERP Assimilation, and Organizational Agility. Survey method was used to collect the data from the managers and executives, who are involved in the key decision making process in any organization. Total 253 out of 265 responses were considered valid and PLS SEM approach was used to test the direct and indirect effects. Results indicate that mediating effect of Business Intelligence Use and ERP Assimilation between IT Infrastructure Flexibility and Organizational Agility has been substantiated. Findings of this study conclude that IT Infrastructure should be improvised, specifically when organization is going to adopt the ERP systems and Business Intelligence to make the timely decisions according to the requirements of the market that ultimately affects the Organizational Agility

Enterprise Software Implementation as Context for Digital Innovation

Many of the IT systems used in organizations are based on comprehensive generic enterprise software (ES) solutions. Accordingly, the process of implementing ES solutions, where generic features are configured and extended according to specific user needs represents a relevant context for digital design and innovation. Yet, besides a few exceptions, it remains little explored by IS research, and the dominant perspective on how generic solutions are implemented portrays a process with little flexibility to design and innovate digital solutions based on emerging user needs. In this paper, we address this gap by studying how innovation takes place during ES implementation. Our empirical analysis is based on data from the first phase of an ongoing case study, where we investigate the practices of five consultancy firms specialized in ES implementation. This paper contributes to the body of knowledge on ES implementation by proposing a conceptualization of how digital innovation takes place in the intersection between ES as a \u27design infrastructure\u27 and the needs of individual customer organizations

Turning Dust to Gold: How to increase inimitability of Enterprise System

There is an on-going debate over the long-term value propositions of enterprise systems (ES) for competitive advantage, with many arguing that ES have lost their potential to contribute to competitive advantage in the contemporary hyper-competitive markets. While acknowledging that an ES is a valuable, rare and non-substitutable resource that is common to all competitors, it is further questionable how ES contribute to competitive advantage. Using the fourth characteristic of the resource-based view, we investigate how inimitability of ES can contribute to competitiveness. Using qualitative evidence from nine case studies this study derives three conditions that facilitate ES to be inimitable

Do Organizational Competencies Influence How Enterprise Systems Foster Organizational Agility?

Recent research indicates that higher ERP assimilation in organizations has positive influence on organizational agility, and that the dynamic capability of systems agility moderates the effects of ERP assimilation on agility. In this paper, we extend this research, to investigate the knowledge conditions under which enterprise systems influence organizational agility. We propose a theoretical framework incorporating two organizational competencies – IT Competence in Business(ITCB) and Business Competence in IT(BCIT) – and theorize that both ITCB and BCIT have mediating and moderating effects on organizational agility. To empirically validate the theoretical framework, we conducted a quantitative cross-sectional survey across 215 organizations. The results validate our key theorizing on the dual effects of ITCB and BCIT on organizational agility. In addition, when organizations have high levels of ITCB and high ERP assimilation, we see surprising results in the negative moderating effects of ITCB on the influence of ERP assimilation on organizational agility

Turning dust to gold: how to increase inimitability of enterprise system

There is an on-going debate over the long-term value propositions of enterprise systems (ES) for competitive advantage, with many arguing that ES have lost their potential to contribute to competitive advantage in the contemporary hyper-competitive markets. While acknowledging that an ES is a valuable, rare and non-substitutable resource that is common to all competitors, it is further questionable how ES contribute to competitive advantage. Using the fourth characteristic of the resource-based view, we investigate how inimitability of ES can contribute to competitiveness. Using qualitative evidence from nine case studies this study derives three conditions that facilitate ES to be inimitable

Effect of enterprise resource planning systems and forms of management control on firm’s competitive advantage

In the brick of digitalization industry revolution era, this study signifies the pertinent role of Enterprise Resource Planning Systems (ERPs) towards assisting the organization towards attaining the firm’s mission and goal. This study extends the knowledge by exploring the relationship between ERPs and management control (MC), which in turn enhances firm’s competitive advantage. Realizing the limited empirical work on ERPs from management accounting and control perspective, the discussion would be drawn from business stakeholder’s perspective, instead of from information technology standpoint. The study views ERPs as an important resource in creating the capability to control the business operations and combination of both factors creates the firm’s competitive advantage. Survey questionnaires were administered via email to 972 randomly selected manufacturing firms listed in Federation of Malaysian Manufacturer Directory. Based on the 114 usable responses, the data was analyzed using a structural equation modeling (SEM) approach through partial least square (PLS) software. The findings provide empirical evidence on the significance of ERPs in determining firm’s MC approaches, both technocratic and socio-ideological forms of control. Evidently, these variables do associate positively with competitive advantage. Additionally, the analysis demonstrates that only technocratic form of MC mediates the relationship between ERPs and competitive advantage, but not for socio-ideological control. These findings provide an insight on the relationship among ERPs, form of MC and firm’s competitive advantage, which may be an input for businesses in facing the industrial digitalization era

Assessing the Connections among Top Management Support, IT Assimilation, and the Business Value of IT: A Meta-Analysis

Scholars and practitioners have long tried to understand the antecedents and consequences of information technology (IT) assimilation. Studies suggest that top management support is an important driver of IT assimilation; however, this broad takeaway provides little substantive guidance to researchers and practitioners. We also have a limited understanding of whether and when IT assimilation creates business value. We take stock of this literature with a meta-analysis. We found that top management support is positively related to IT assimilation, and assimilation is in turn positively related to the business value of IT. We also found that explicit support does not have any special effect on IT assimilation (compared to implicit support) and may not be related to business value at all. However, our results indicate that IT assimilation has a stronger effect on business value at the process level (versus firm level) and for enterprise IT innovations (versus function IT innovations). Finally, we found that support-assimilation and assimilation-value relationships are stronger in high (versus low) power distance cultures. Our collective findings can facilitate future research and help practitioners navigate IT assimilation initiatives

Agile innovation: Innovating with enterprise systems

The contemporary organisations are presented with an eclectic collection of technologies that has dramatically shifted the process of innovation. This thesis investigates the nature and the process of attaining innovation through the modern IT portfolio. A qualitative study of nine organizations was conducted. The results identified that the modern IT portfolio innovates through a new innovation process called 'agile innovation,' which differs from the existing innovation types