Enterprise systems and labor productivity: disentangling combination effects

This study analyzes the relationship between the three main enterprise systems (Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM)) and labor productivity. It reveals the performance gains due to different combinations of these systems. It also tests for complementarity among the enterprise systems with respect to their interacting nature. Using German firm-level data the results show that the highest productivity gains due to enterprise system usage are realized through use of the three main enterprise systems together. In addition, SCM and CRM function as complements, especially if ERP is also in use. --Labor productivity,enterprise systems,complementarity,Enterprise Resource Planning,Supply Chain Management,Customer Relationship Management

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

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

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

Enterprise systems and labor productivity : disentangling combination effects

This study analyzes the relationship between the three main enterprise systems (Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM)) and labor productivity. It reveals the performance gains due to different combinations of these systems. It also tests for complementarity among the enterprise systems with respect to their interacting nature. Using German firm-level data the results show that the highest productivity gains due to enterprise system usage are realized through use of the three main enterprise systems together. In addition, SCM and CRM function as complements, especially if ERP is also in use

Which Came First, IT or Productivity? The Virtuous Cycle of Investment and Use in Enterprise Systems

While it is now well established that IT intensive firms are more productive, a critical question remains: Does IT cause productivity or are productive firms simply willing to spend more on IT? We address this question by examining the productivity and performance effects of enterprise systems investments in a uniquely detailed and comprehensive data set of 623 large, public U.S. firms. The data represent all U.S. customers of a large vendor during 1998–2005 and include the vendor’s three main enterprise system suites: Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer Relationship Management (CRM). A particular benefit of our data is that they distinguish the purchase of enterprise systems from their installation and use. Since enterprise systems often take years to implement, firm performance at the time of purchase often differs markedly from performance after the systems “go live.” Specifically, in our ERP data, we find that purchase events are uncorrelated with performance while go-live events are positively correlated. This indicates that the use of ERP systems actually causes performance gains rather than strong performance driving the purchase of ERP. In contrast, for SCM and CRM, we find that performance is correlated with both purchase and golive events. Because SCM and CRM are installed after ERP, these results imply that firms that experience performance gains from ERP go on to purchase SCM and CRM. Our results are robust against several alternative explanations and specifications and suggest that a causal relationship between ERP and performance triggers additional IT adoption in firms that derive value from their initial investment. These results provide an explanation of simultaneity in IT value research that fits with rational economic decision-making: Firms that successfully implement IT, react by investing in more IT. Our work suggests replacing “either-or” views of causality with a positive feedback loop conceptualization in which successful IT investments initiate a “virtuous cycle” of investment and gain. Our work also reveals other important estimation issues that can help researchers identify relationships between IT and business value.NYU, Stern School of Business, IOMS Department, Center for Digital Economy Researc

Supply Chain Information Systems and Organisational Performance in Economic Turbulent Times

Supply Chain Information Systems and their impact on organisational performance has been studied by a number of studies. This study seeks to extend this body of knowledge by adopting a fresh lens to explore empirically the relationship between organizational performance and SCIS in circumstances of economic downturn and financial turbulence. The statistical relationship between Supply Chain Information Systems (SCIS) ˜Effectiveness and ˜Organisational Performance is tested and measured by multidimensional financial and non-financial variables. So even though complexities associated with measuring SCIS efficiency and Organisational Performance continue to dominate research discussions these are somewhat limited to just explaining the phenomenon without addressing the misalignment of the information provided by SCIS, business expectations and Organisational Performance. In consequence this papers reports findings from a large survey of 168 SCIS managers in Greek SMEs where even through economic downturn a strong correlation between SCIS and non-financial Organisational Performance is evidenced. In considering the findings this study proposes guidance to enhance SCIS Effectiveness and Organisational Performance

ERP System Implementation in a Leading LED Manufacturing Firm in Malaysia. A Supply Chain Perspective

valuable and quality information exchange to perform their daily operations and long-term action plan. Hence, selecting and embracing the right supply chain or business management software has become essential to organization. Most Malaysian manufacturer in prefer in adopting to an enterprise resources planning (ERP) system. However, implementing ERP system successfully is costly and complex, and often shows high disappointment rates or even abandonment due to need of fit with the business or social culture. The study conducted to explore the ERP system implementation in a manufacturing-based organization from the perspective of supply chain management. The ERP system implementation could have either positive or negative affects towards organization or company in terms of performance and innovation. The empirical data were collected using in-depth interview as an instrument in a LED manufacturing company. The result confirm that data cannot be editing after done click, server down and more procedure and process are the causes of ineffective implementation of ERP system in the company. This study gives insight to all top management and supply chain practitioners in the manufacturing industry company in implementing ERP System. Furthermore, the findings of this study could also be beneficial to all ERP users as they would be able to understand the ERP system implementation in sectors apart from manufacturing industry. Finally, the outcome of this study could be useful to ERP system adopters in different developing countries. This is one of the first studies, which adequately covers the challenges faced on ERP implementation itself in a LED-manufacturing firm

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