Enterprise Systems Adoption and Firm Performance in Europe: The Role of Innovation

Despite the ubiquitous proliferation and importance of Enterprise Systems (ES), little research exists on their post-implementation impact on firm performance, especially in Europe. This paper provides representative, large-sample evidence on the differential effects of different ES types on performance of European enterprises. It also highlights the mediating role of innovation in the process of value creation from ES investments. Empirical data on the adoption of Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM), Knowledge Management System (KMS), and Document Management System (DMS) is used to investigate the effects on product and process innovation, revenue, productivity and market share growth, and profitability. The data covers 29 sectors in 29 countries over a 5-year period. The results show that all ES categories significantly increase the likelihood of product and process innovation. Most of ES categories affect revenue, productivity and market share growth positively. Particularly, more domainspecific and simpler system types lead to stronger positive effects. ERP systems decrease the profitability likelihood of the firm, whereas other ES categories do not show any significant effect. The findings also imply that innovation acts as a full or partial mediator in the process of value creation of ES implementations. The direct effect of enterprise software on firm performance disappears or significantly diminishes when the indirect effects through product and process innovation are explicitly accounted for. The paper highlights future areas of research.Enterprise Systems; ERP; SCM; CRM; KMS; DMS; IT Adoption; Post-implementation Phase; IT Business Value; Innovation; Firm Performance; Europe

How do supply chain management and information systems practices influence operational performance?:Evidence from emerging country SMEs

This study first provides a comparative analysis of the impact of supply chain management (SCM) and information systems (IS) practices on operational performance (OPER) of small- and medium-sized enterprises (SMEs) operating in two neighbouring emerging country markets of Turkey and Bulgaria. Then, we investigate moderating effects of both SCM–IS-linked enablers and inhibitors on the links between SCM and IS practices and OPER of SMEs. To this end, we first empirically identify the underlying dimensions of SCM and IS practices, and SCM–IS-related enabling and inhibiting factors. Second, a series of regression analyses are undertaken to estimate the impact of the study's constructs on OPER of SMEs. The results are discussed comparatively within the contexts of both Turkish and Bulgarian SMEs and beyond. The study makes a significant contribution to the extant literature through obtaining and analysing cross-national survey data of SCM and IS practices in emerging country markets

The Relationship of Information Systems, Supply Chain Management With Organisational Performance

Purpose In today’s world, Supply Chain Management (SCM) is a key strategic factor for increasing organisational effectiveness and for better realisation of organisational goals such as competitiveness, better customer care and increased profitability (Ganesh Kumar and Nambirajan, 2013). As such, research interest has focused on supply chain practices with SMEs and large organisations in terms of supply chain information systems (SCIS) and organisational performance. Research Approach This study aims at the exploration of the statistical relationship between (SCIS) Effectiveness and Organisational Performance. The findings from a survey involving 168 IT managers show a strong correlation between SCIS and non-financial Organisational Performance across a cohort of Small Medium Enterprises (SMEs) and large organisations. Findings and Originality These findings are further confirmed by a recent publication from Ganesh Kumar and Nambirajan, (2013). This study identified the items used by researchers for the measurement of both constructs. Exploratory Factor Analysis was employed as there was no theoretical basis to specify a priori the number and patterns of common factors (Hurley et al., 1997) especially for the extraction of factors measuring the non-financial performance of a firm. Research Impact The analyses also revealed that companies with a high implementation degree show a better supply chain performance. Furthermore, the results show that this paper contributes to the SCM field by providing scales for financial and non-financial performance constructs, and by exploring how those are improved by the adoption of specific Supply Chain Information Systems. Practical Impact The purpose of this study aims at the exploration of the statistical relationship between Supply Chain Information Systems’ (SCIS) Effectiveness and Organisational Performance, when this is measured by financial and non-financial variables and the impacts on SMEs performance

The Effects of Enterprise Systems on the Absorptive Capacity of Greek Firms

In the highly dynamic, competitive, complex and ‘knowledge intensive’ modern economy the exploitation and management of external knowledge has become of critical importance for the success of firms, and this has led to increasing interest of both researchers and practitioners in the concept of firm’s absorptive capacity (ACAP). It has been recognized that information and communication technologies (ICT) can be quite useful for the improvement of firms’ ACAP. Some empirical research has been conducted in this direction, which however has not examined the role from this perspective of the most important ICT investments of firms: the different types of enterprise systems (ES) implemented by firms increasingly, which become critical infrastructures of their operation. This paper contributes to filling this research gap, by presenting an empirical investigation of the effects of the five most important and widely used types of enterprise systems (ERP, CRM, SCM, business intelligence/business analytics and collaboration support systems) on the ACAP of Greek firms. It is based on data collected through a survey from 122 Greek firms from both manufacturing and services sectors, which are used for the estimation of regression models of firm’s ACAP. It has been concluded that the use of three of the above types of ES, the ERP, the CRM and the business intelligence/business analytics ones, have positive effects on firm’s ACAP, which concern mainly two of its dimensions: the internal diffusion and analysis of external knowledge, and also the assimilation/integration in the knowledge base of the firm

Cumulating Conditions. An Empirical Analysis of the EIS Adoption by European Firms

In this paper we aim to empirically test the relative influence of internal and external conditions for the adoption of Enterprise Information Systems (EIS). For this goal data are used from the EU-initiated E-Business W@tch survey 2002/2003 among more than 10,000 organizations from seven different European countries. It appears that organizational size, sector and country all have significant and cumulative effects on the EIS adoption by organizations. More specifically, national culture matters if we control for size and sector

SMEs e-business behaviour: a demographics and strategic analysis

The aim of this research was to understand the strategic uses of e-business systems and technologies by classifying companies and particularly small and medium businesses according to demographics as well as e-business behavior variables.The study was based on data from a large quantitative survey of European E-business W@tch for the period 2007 using questionnaire interviews (N=409). We employed two-step cluster analysis, multinomial logistic regression and stepwise descriminant analysis as the most appropriate methods for our analysis. The findings revealed six clusters associated to e-business adoption. The six groups differ in terms of demographic characteristics as well as e-business applications they use. We found that the following clusters exist: (a) Leaders: large companies that extensively use ebusiness in a strategic manner (b) innovators: use e-business in an way that allows them to innovate and differentiate from other companies (c Beginners: small and medium companies across all sectors that only recently start to use e-business (d) Unready Adopters: micro and small companies that lag behind (e) Late Adopters: small-size companies but larger that the Unready Adopters, that appear not to be interest in the advances of ICTs and (f) Laggards: micro companies with little use of e-business.The results of our survey can positively contribute to managers aiming to take advantage of technological advances in electronic business as well as to any researcher who study e-business management and applications

Drivers and Impacts of R&D Adoption on Transport and Logistics Services

Actually, technologies and applications in industries are changing via business restructuring, new business models, new knowledge and supply chains. So R&D is not focused primarily on manufacturing industry as it used to be, but on different kinds of industries as logistics and transport (TLS). Nevertheless, the characteristics of the TLS industry determine the introduction of specific R&D solutions accordingly to sectors operations. The objective of this paper is to describe the R&D opportunities in the TLS industry and how managers use them to make their businesses more innovative and efficient. Using the Structure-Conduct-Performance (SCP) model the paper identifies the links between R&D adoption and innovation dynamics. Relating the findings, on the driver’s side there are three points that are worth mentioning: increasing market competition, the relationships of firms interacting with each other and the availability and quality of complementary assets such as employee skills and IT know-how. On the impacts’ side, firms advanced in terms of implementing R&D solutions are more likely to implement organizational changes. Finally, a set of recommendations on how to further improve the continuous innovation in the TLS industry is presented

Enterprise Systems Adoption and Firm Performance in Europe: The Role of Innovation

Despite the ubiquitous proliferation and importance of Enterprise Systems (ES), little research exists on their performance impact, especially in Europe. This paper provides large-sample, economy-wide evidence on the differential effects of enterprise systems on performance of European enterprises. It also highlights the important mediating role of innovation in the process of value creation from ES investments. This study uses data on the adoption of ERP (Enterprise Resource Planning), SCM (Supply Chain Management), CRM (Customer Relationship Management), KMS (Knowledge Management System), and DMS (Document Management System) and investigates the effects on product and process innovation, revenue, productivity and market share growth, and profitability. The results show that all ES categories significantly contribute to product and process innovation. Most of ES categories affect revenue, productivity and market share growth positively. More domain-specific and simpler system types lead to stronger positive effects. None of ES categories contribute to profitability likelihood. The findings imply that innovation acts as a full or partial mediator in the relationship between ES adoption and firm performance

Combining technology and work organization : an analysis of complementarity between IT and decentralization across firms of different size

This paper examines whether information technology (IT) and decentralized work organization are complementary only for large firms or also for smaller firms. Empirical evidence, which suggests complementarity between IT and decentralization, is mainly based on large firms. Using data from a sample of 3292 SMEs and of 598 larger firms from the manufacturing and service sector in Germany, I can observe firms’ IT intensity in terms of enterprise software and computer use and whether firms have a decentralized work organization. I find that SMEs with decentralized work practices tend to use IT more intensively. Moreover, for the sample of SMEs, IT and decentralized work organization are individually associated with higher productivity but the combination of IT and decentralization does not yield a productivity premium. Contrarily, for the sample of larger firms, the results show that the productivity of IT depends positively on decentralization. The findings suggest that combining IT and decentralized work organization seems to be a successful strategy only for larger firms