Differential Effects on ERP Post-Adoption Stages across Scandinavian and Iberian SMEs

Abstract

Enterprise resource planning (ERP) post-adoption stages (use and value) and small and medium enterprises (SME) are of high interest among both academics and practitioners. Grounded in the diffusion of innovation theory to explain ERP use and resource-based view theory to explain ERP value the authors postulate that use is an important link to value. The authors propose and test a model using a unique dataset of 883 SMEs from Scandinavia and Iberia. Whereas for both regions, competitive pressure, efficiency, and best-practices are important factors to use ERP, analytics and collaboration are important factors for ERP value. Whereas complexity and training are not relevant for ERP use among Scandinavian SMEs, they are facilitators for Iberian firms. This is an empirical theoretically grounded research studying ERP use and value among SMEs across two distinct European regions, thus adding an international dimension to the IS literature, as well moving beyond dichotomous “adoption versus non-adoption”.

Defining the ERP and CRM Integrative Value

“…The RBV has been used in the IS literature to explain IT business value, in which firm-specific sets of resources determine the firm's performance [21][22][23]35,36]. The present study uses the RBV as a frame of reference to develop a theoretical model to understand the extent to which ERP and CRM integration contribute to firm performance.…”

“…A potential framework for extending the theoretical basis of IT value is the Resource-Based View (RBV) of the firm, which roots on economics and management rationales [21][22][23]32]. These two perspectives provide the development of a robust model to link both the ERP and CRM firm performance literature into a single model.…”

“…When the firm resources are valuable, non-imitable and non-substitutable, they can explain the differences in firm performance [21][22][23]33,34].…”

“…Traditional cost measures such as direct operating costs (ROA, ROE, COGS, SG&A, profit margin), inventory levels and cash management [14,15,19,20]. There are some econometric researches that studied tangible and intangible complementarily streams and assess a positive relationship between ERP and firm performance [21][22][23][24].…”

“…As example -a marketing campaign generate a new sales order which triggers inventory levels, production order, purchase order, quality orders, invoices, etc. New processes that are valuable for firms to pursuit [6,14,[21][22][23][24]44].…”