Impact of an ERP system’s capabilities upon the re

Authors: Sylvestre Uwizeyemungu Louis Raymond

Publish Date: 2012/04/08

Volume: 13, Issue: 2, Pages: 69-90

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Abstract

Using the resourcebased view as a frame of reference this study seeks to explore the potential link between the essential characteristics of an ERP system defined as ERP capabilities and its contribution to organisational performance This contribution is conceptualised and measured through the value added by automational informational and transformational effects of ERP capabilities upon the firm’s operational and managerial processes Empirical data were obtained for the study’s purpose from three case studies of manufacturing firms through 25 indepth interviews of various managers including the firm’s CIO In addition to proposing an instrument to characterise an ERP system “as installed” in terms of three capabilities ERP integration ERP flexibility ERP transversality the study confirms that these capabilities are crucial in determining the contribution of an ERP system to organisational performance The study also highlights different ERP effects on organisational processes and their relative importance in providing business value While exploratory in nature this study derives interesting implications from the data analysis in the form of propositions that may serve as research hypotheses in future studiesExtent to which an ERP system allows interconnection ie connectivity and compatibility between hierarchical levels in the organisation Connectivity ability of any technology component to attach to any other components 17 36 Compatibility ability to share any type of information across any technology component 17 36

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