Enterprise resource planning (ERP) systems and the manufacturing–marketing interface: an information-processing theory view

Abstract

This is an electronic version of an article published in Gattiker, TF. (2007). ERP Systems and the manufacturing-marketing interface: An information processing theory view. International Journal of Production Research, 45(13): 2895-2917.. International Journal of Production Research is available online at: http://www.informaworld.com/smpp. DOI: 10.1080/00207540600690511This is an electronic version of an article published in Gattiker, TF. (2007). ERP Systems and the manufacturing-marketing interface: An information processing theory view. AbstractThe manufacturing-marketing (MM) interface has received substantial consideration in the operations management literature; however, relatively little attention has been paid to the role of information systems in facilitating MM integration. As integrated cross-functional systems, enterprise resource planning systems (ERP) are well-suited to provide MM integration. Based on information processing theory, the central proposition of this paper is the greater the interdependence between manufacturing and marketing, the greater the benefit of ERP. Specifically, H1 states that the greater ERP-enabled coordination between manufacturing and marketing, the greater the benefit of ERP to the plant. H2 states that the degree to which ERP-enabled manufacturing-marketing coordination improvements are realized, depends on the amount of interdependence between manufacturing and marketing. Using multiple regression, the model is tested on survey data from 107 manufacturing plants running ERP. The data support H1 and H2. These findings support the general proposition that interdependence between functions is one factor that influences the degree to which organizations reap benefits from their ERP investments. Based on the ERP literature, the model controls for the amount of time that ERP has been running in the plant; This factor was found to be insignificant in the model. However, exploratory analysis finds that time is associated with other ERP benefits.Keywords: Enterprise systems (ERP); Manufacturing-Marketing interface; Interdependence; Information Processing Theory This is an electronic version of an article published in Gattiker, TF. (2007). ERP Systems and the manufacturing-marketing interface: An information processing theory view.

Information management for the internationalization of SMEs: An exploratory study based on a strategic alignment perspective

“…For instance, Flynn and Flynn (1999) examined a variety of information processing approaches in the manufacturing context and found environmental uncertainty to negatively influence organizational performance, whereas IT investments had no significant influence. In an ERP context, Gattiker (2007) found interdependence among the firm's subunits to be a source of uncertainty, this author stating that "the greater the interdependence between marketing and operations the greater the benefit of a highly integrative coordination mechanism such as ERP" (p. 2911). More recently Cegielski et al (2012) used information processing theory to assess how a firm's information processing requirements and capabilities combine to affect the intention to adopt cloud computing as an enabler of supply chain management systems.…”

“…In this research, we define information processing capability as an organization's capacity to utilize and structure information in a meaningful fashion that supports decision making (Tushman and Nadler, 1978). Previous research suggests that IT is a key aspect of an organization's information processing capability (Cegielski et al, 2013;Melville and Ramirez, 2008;Gattiker, 2007;Premkumar et al, 2005). Tushman and Nadler (1978) assert that, within organizations, formalized information systems, and particularly ones that are IT-based, are the most complex but provide the highest capacity for organizational information processing.…”

Nurturing Internal Supply Chain Integration

“…However our study found only a moderate support for this notion. Similarly enterprise-wide computer systems (ERP) are also commonly accepted as a tool to achieve enterprise-wide integration (Gattiker, 2007;Davenport, 2000). Our study however, did not find any significant effect of ERP systems on internal supply chain integration.…”

Supply chain technology: the role of environment in predicting performance

“…From one perspective, supply chain IT has the capability, along with enterprise resource planning systems (Gattiker 2007), to bridge functional silos existent among marketing, production, and distribution. From another perspective, long-term buyer-seller relationships (e.g., Dwyer et al 1987;Morgan and Hunt 1994) are strongly facilitated by supply chain IT.…”