Managing firm risk, or firm performance volatility, is a key task for contemporary firms. Although information technology (IT) has been generally viewed as an effective information processing tool ...that enables firms to better cope with uncertainty, thus holding the potential to mitigate firm performance volatility, evidence to support this view is lacking in the literature. We theorize that enterprise resource planning (ERP) systems, a major type of enterprise IT applications, can help reduce firm risk and, in particular, we argue that, to uncover the risk reduction effect of ERP systems, a research focus on the post-implementation stage is needed. Based on a sample of 2,127 firm-year observations, we found that ERP systems in the post-implementation stage were associated with reduced firm risk, and that the risk reduction effect was stronger for ERP systems with a greater scope of functional and operational modules, especially functional modules. We further found that, on average, the risk reduction effect of ERP systems became greater when firms’ operating environments feature higher uncertainty, while the risk reduction associated with fully deploying ERP system modules seem to level off as environmental uncertainty increases. These findings extend our understanding of the business value of ERP systems by shedding light on the risk reduction benefit of ERP systems.
Industry 4.0 solutions such as the use of AI are becoming increasingly visible in everyday logistics processes. Many publications have already dealt with what technological innovations could be ...introduced to improve the flow of materials, but relatively few have dealt with the extent to which these theoretical solutions are also present in practice. In connection with this gap, the current research aims to examine the effectiveness and impact of AI use in the logistics field. This paper is a follow-up study on the topic as the logistics AI use was already analyzed in Pest County in the framework of this study direction. Since this study is still the second step of the already commenced research work, the very study does not try to draw conclusions leading to generalization but rather aims to draw causal conclusions of a pilot nature. In the research tools, the paper uses the qualitative design from the previous study (applied in another geographical territory-Zala County) but at the same time examines other analyzing methods like SEM modelling as a potential tool to be integrated.
Little research has examined the impacts of enterprise resource planning (ERP) systems implementation on job satisfaction. Based on a 12-month study of 2,794 employees in a telecommunications firm, ...we found that ERP system implementation moderated the relationships between three job characteristics (skill variety, autonomy, and feedback) and job satisfaction. Our findings highlight the key role that ERP system implementation can have in altering well-established relationships in the context of technology-enabled organizational change situations. This work also extends research on technology diffusion by moving beyond a focus on technology-centric outcomes, such as system use, to understanding broader job outcomes.
Over time, persistent change may have a considerable effect on the codebases of enterprise resource planning (ERP) systems. Small changes, however, are not always expressions of intentional and ...incremental transformation. They may result from unplanned but necessary and urgent corrections for repairing undesired functionality that entered the ERP system via previously applied change. Every such repair will affect the performance and prioritization of operational processes and, by extension, influence the business that the system intends to support. We developed a change log data view to assess business impact by classifying repairs into one of two mutually exclusive classes. Repairs are either effective, meaning that the next change delivers the fix, or defective, meaning multiple successive attempts are required to satisfactorily correct the initial erroneous change. Investigating the extent to which both repair types on proprietary codebase customizations affect competence center operational performance, our view delivered two finds. First, change size is a poor indicator for repair resolution efficacy. Second, most repairs appear to be defective suggesting poor codebase change process control. Our data originated from 25 SAP landscapes, representing an average system age of around five years and an average landscape size of 57 ERP system instances.
Culture plays a vital role in the acceptance and effective utilization of information technologies. As a value-laden artefact, information technology (IT), such an Enterprise Resource Planning (ERP) ...system, is likely to introduce a counterculture in conflict with the implementing organization. Yet, how cultural alignment between IT and the implementing organization develops over time in a multicultural context is unknown. This research presents a dynamic process of cultural alignment, outlining the steps and events that lead to the alignment of cultural issues between an ERP system and the adopting organization at national, sectoral, organizational and group levels. Drawing on a longitudinal case study of a logistics service provider’s ERP system deployment across France, Italy, Morocco and Tunisia, this study shows that cultural alignment involves four key steps – requirement analysis, ERP selection, cultural misfit resolution and user testing – that are strongly influenced by technical, operational and organizational constraints. Our findings contribute to the understanding of the dynamic and intricate nature of the cultural alignment process, involving both the organization and technology.
PurposeThe paper discusses the assessment of enterprise information systems (EIS) success in an organizational context is one area that is not sufficiently researched. This lack of theoretical ...attention prompted the authors to measure EIS success in the organizational setting of Jordanian listed firms.Design/methodology/approachBased on the DeLone and McLean success model and by adopting a quantitative approach, survey data were collected through questionnaires. The established questionnaires were distributed to 250 senior IT executives who use EIS and a total of 134 valid questionnaires were empirically tested via the Smart-PLS technique.FindingsThe investigation findings indicate that information and system quality had a positive impact on user satisfaction and individual impact. User satisfaction had a positive influence on individual impact, both of which eventually lead to organizational impact. The results also showed that the model used has adequate convergent and discriminant validities, as well as sufficient reliability.Practical implicationsThe outcomes can help managers and practitioners more effectively understand the factors influencing EIS success among Jordanian listed firms.Originality/valueThis research paper is the very first in assessing EIS success from an organizational perspective in developing country such as Jordan.
Almost any firm faces a change during its life that requires a redefinition of the business model to be more innovative, namely business model innovation (BMI) that designs an architecture to create, ...capture and deliver value to customers in the marketplace and society. These changes are a great opportunity to improve revenue and costs, but the associated organizational complexity also has drawbacks, due to the set of interrelationships and linkages within the firm. This situation could be even more relevant for firms that implement Enterprise Resource Planning (ERP), due to the complexity of the software and also the difficult implementation process in the organization. In order to fill this gap, this study analyses 104 firms that have implemented ERP and deal simultaneously with BMI. The research objective is therefore to test the role of organizational complexity between ERP and BMI. Specifically, the aim is to test the mediating role of organizational complexity between ERP and BMI. Our findings reveal that organizational complexity mediates between ERP and BMI. Important implications for researchers and managers are provided to optimize ERP implementation so as to obtain a higher return on the costs and revenue associated with BMI.
•Organizational complexity of business model innovation is a great opportunity to improve revenue and costs but also has implementation drawbacks.•There is a growing need to align enterprise resource planning with organizational complexity in business model innovation environments.•Important implications for researches and managers arise in the optimization of enterprise resource planning implementation.
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