Abstract
Both academics and practitioners have a growing interest in information technology (IT) value. This is particularly important in cases of systems such as enterprise resource planning (ERP), as the use of these systems involves significant investment. In this study we seek to measure and examine determinants of ERP use and value. Based on the diffusion of innovation (DOI) literature to explain ERP use and resource-based view (RBV) theory to explain ERP value, we develop a research model, on which nine hypotheses are postulated for measuring ERP in post-adoption stages and its consequences on Portuguese small and medium enterprise (SME) performance. The model was tested through structural equation modelling (SEM) on a dataset of 134 firms web-surveyed. We find that compatibility, best practices, complexity, efficiency, training, and competitive pressure are important determinants of ERP use. Together with use, collaboration and analytics capabilities will contribute to ‘ERP value’. Even though this study provides insight into how SMEs use and extract value from ERP, unlike the typical focus on ERP adoption reported in the literature, this study focuses on post-adoption stages, linking actual usage with value creation.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Antero, M., Riis, P.H.: Strategic Management of Network Resources: A Case Study of an ERP Ecosystem. International Journal of Enterprise Information Systems 7(2), 18–33 (2011)
Bendoly, E., Kaefer, F.: Business technology complementarities: impacts of the presence and strategic timing of ERP on B2B e-commerce technology efficiencies. Omega 32(5), 395–405 (2004)
Bharadwaj, A.S.: A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS Quarterly 24(1), 169–196 (2000)
Bradford, M., Florin, J.: Examining the role of innovation diffusion factors on the implementation success of enterprise resource planning systems. International Journal of Accounting Information Systems 4(3), 205–225 (2003)
Buonanno, G., Faverio, P., Pigni, F., Ravarini, A., Sciuto, D., Tagliavini, M.: Factors affecting ERP system adoption: A comparative analysis between SMEs and large companies. Journal of Enterprise Information Management 18(1), 384–426 (2005)
Calisir, F., Calisir, F.: The Relation of Interface Usability Characteristics, Perceived Usefulness, and Perceived Ease of Use to End-User Satisfaction with Enterprise Resource Planning (ERP) Systems. Computers in Human Behavior 20(4), 505–515 (2004)
Chang, H.-H., Chou, H.-W., Yin, C.-P., Lin, C.I.: ERP Post-Implementation Learning, ERP Usage and Individual Performance Impact. In: PACIS 2011 Proceedings, paper 35 (2011)
Chou, S.W., Chang, Y.C.: The implementation factors that influence the ERP (enterprise resource planning) benefits. Decision Support Systems 46(1), 149–157 (2008)
Chiang, A.: Creating Dashboards: The Players and Collaboration You Need for a Successful Project. Business Intelligence Journal 14(1), 59–63 (2009)
Yu, C.-S.: Causes influencing the effectiveness of the post-implementation ERP system. Industrial Management & Data Systems 105(1), 115–132 (2005)
Chuang, T., Nakatani, K., Zhou, D.: An exploratory study of the extent of information technology adoption in SMEs: An application of Upper Echelon Theory. Journal of Enterprise Information Management 22(2), 183–196 (2009)
Cooper, R., Zmud, R.: Information Technology Implementation Research: A Technological Diffusion Approach. Management Science 3(2), 123–139 (1990)
Davenport, T.H.: Putting the enterprise into the enterprise system. Harvard Business Review 76(4), 121–131 (1998)
Davenport, T.H., Harris, J.G.: Competing on Analytics: The New Science of Winning. Harvard Business School Press (2007)
Devaraj, S., Kohli, R.: Performance impacts of information technology: Is actual usage the missing link? Management Science 49(3), 273–289 (2003)
Elbertsen, L., Benders, J., Nijssen, E.: ERP use: exclusive or complemented? Industrial Management & Data Systems 106(6), 811–824 (2006)
Fosser, E., Leister, O.H., Moe, C.E.: Organizations and vanilla software: What do we know about ERP systems and competitive advantage? In: 16th European Conference on Information Systems, vol. 8(11), pp. 2460–2471 (2008)
Gattiker, T.F., Goodhue, D.L.: What happens after ERP implementation on plant-level outcomes. MIS Quarterly 29(3), 559–585 (2005)
Hair, J., Anderson, R., Tatham, R., Black, W.: Multivariate Data Analysis. Prentice Hall, Upper Saddle River (1998)
Häkkinen, L., Hilmola, O.P.: Life after ERP implementation: Long-term development of user perceptions of system success in an after-sales environment. Journal of Enterprise Information Management 21(3), 285–310 (2008)
Hedman, J., Kalling, T.: The business model concept: theoretical underpinnings and empirical illustrations. European Journal of Information Systems 12, 49–59 (2003)
Hitt, L.M., Wu, D.J., Zhou, X.: Investment in enterprise resource planning: business impact and productivity measures. Journal of Management Information Systems 19(1), 71–98 (2002)
Ho, C., Tai, Y.: Strategies for the adaptation of ERP systems. Industrial Management & Data Systems 104(3), 234–251 (2004)
Klaus, H., Rosemann, M., Guy, G.G.: What is ERP? Information Systems Frontiers 2(2), 141–162 (2000)
Kositanurit, B., Ngwenyama, O., Osei-Bryson, K.: An exploration of factors that impact individual performance in an ERP environment: An analysis using multiple analytical techniques. European Journal of Information Systems 15, 556–568 (2006)
Low, C., Chen, Y., Wu, M.: Understanding the determinants of cloud computing adoption. Industrial Management & Data Systems 111(7), 1006–1023 (2011)
Mabert, V., Soni, A., Venkataramanan, M.A.: Enterprise resource planning: measuring value. Production Inventory Management Journal 42(3), 46–52 (2001)
Malhotra, N., Birks, D.: Marketing Research: An Applied Approach, 3rd edn. Financial Times Press, Edinburg (2007)
Mata, F.J., Fuerst, W.L., Barney, J.B.: Information technology and sustained competitive advantage: A resource-based analysis. MIS Quarterly 9(4), 487–505 (1995)
Nah, F., Tan, X., The, S.H.: An Investigation on End-Users Acceptance of Enterprise Systems. Information Resources Management Journal 17(3), 32–53 (2004)
Nicolaou, A.I.: Firm Performance Effects in Relation to the Implementation and Use of Enterprise Resource Planning Systems. Journal of Information Systems 18(2), 79–105 (2004)
Nicolaou, A., Bhattacharya, S.: Organizational performance effects of ERP systems usage: the impact of post implementation changes. International Journal of Accounting Information Systems 7, 18–35 (2006)
Nicolaou, A.I., Bhattacharya, S.: Sustainability of ERPs performance outcomes: the role of post-implementation review quality. International Journal of Accounting Information Systems 9, 43–60 (2008)
Oliveira, T., Martins, M.F.: Understanding e-business adoption across industries in European countries. Industrial Management & Data Systems 110(9), 1337–1354 (2010)
Oliveira, T., Martins, M.F.: Literature Review of Information Technology Adoption Models at Firm Level. The Electronic Journal Information Systems Evaluation 14(1), 110–121 (2011)
O’Leary, D.: Enterprise resource planning: systems, life cycle, electronic commerce, and risk. Cambridge Univ. Press, New York (2000)
Park, J.H., Suh, H.J., Yang, H.D.: Perceived absorptive capacity of individual users in performance of enterprise resource planning (ERP) usage: The case for Korean firms. Information & Management 44, 300–312 (2007)
Rajagopal, P.: An innovation-diffusion view of implementation of enterprise resource planning (ERP) systems and development of a research model. Information & Management 40, 87–114 (2002)
Raymond, L., Uwizeyemungu, S.: A profile of ERP adoption in manufacturing SMEs. Journal of Enterprise Information Management 20(4), 487–502 (2007)
Rhodes, J., Lok, P., Yang, S., Bambacas, M.: Resource based view of intangibles on ERP systems implementation and organizational performance in China. Journal of Global Strategic Management 5, 87–96 (2009)
Rogers, E.M.: Diffusion of innovations, 4th edn. The Free Press, New York (1995)
Ruivo, P., Neto, M.: Sustainable enterprise KPIs and ERP post-adoption. In: 6th Iberian Conference on Information Systems and Technologies (CISTI), vol. 1, pp. 1–7 (2011)
Ruivo, P., Oliveira, T., Neto, M.: ERP post-adoption: value impact on firm performance. In: 7th Iberian Conference on Information Systems and Technologies (CISTI), paper 162 (2012)
Shahin, D., Ainin, S.: The influence of organizational factors on successful ERP implementation. Management Decision 49(6), 911–926 (2011)
Straub, D.: Validating instruments in MIS research. MIS Quarterly 13(2), 147–169 (1989)
Velcu, O.: Exploring the effects of ERP systems on organizational performance: evidence from Finnish companies. Industrial Management & Data Systems 107(9), 1316–1334 (2007)
Wenrich, K., Ahmad, N.: Lessons learned during a decade of ERP experience: A case study. International Journal of Enterprise Information Systems 5(1), 55–73 (2009)
Zhang, Z., Lee, M.K.O., Huang, P., Zhang, L., Huang, X.: A framework of ERP systems implementation success in China: An empirical study. International Journal of Production Economics 98(1), 56–80 (2005)
Zhu, K., Kraemer, K.L.: Post-adoption variations in usage and value of e-business by organizations: Cross-country evidence from the retail industry. Information Systems Research 16(1), 61–84 (2005)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2012 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Ruivo, P., Oliveira, T., Neto, M. (2012). ERP Post-adoption: Use and Value – An Empirical Study on Portuguese SMEs. In: Rahman, H., Mesquita, A., Ramos, I., Pernici, B. (eds) Knowledge and Technologies in Innovative Information Systems. MCIS 2012. Lecture Notes in Business Information Processing, vol 129. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-33244-9_5
Download citation
DOI: https://doi.org/10.1007/978-3-642-33244-9_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-33243-2
Online ISBN: 978-3-642-33244-9
eBook Packages: Computer ScienceComputer Science (R0)