scholarly journals The relationship between enterprise resource planning (ERP) implementation and intellectual capital under the moderating effect of organizational learning capability

2021 ◽  
Author(s):  
◽  
Quang Nguyen
Keyword(s):  
Organizational Learning ◽  
Enterprise Resource Planning ◽  
Intellectual Capital ◽  
Resource Planning ◽  
Three Dimensions ◽  
Erp Systems ◽  
Erp Implementation ◽  
Learning Capability ◽  
Product Term ◽  
Positive Effect

<p>Although Enterprise Resource Planning (ERP) systems alone are not the source of competitive advantage, they may do this indirectly through enhancing or supplementing the organization’s other strategic resources. Studies on ERP have not explicitly examined the interactions of ERP systems with other organizational capabilities to determine how investment in ERP systems can be leveraged into the creation of strategic resources of organizations.  Further, ERP systems are large and complex, and the degree to which they are implemented throughout an organization can vary – this is described as the ERP scope. The scope of ERP implementation is believed to influence the degree of its effects on an organization. Relying on the literature on ERP effects, business value of information technology (IT) and the notion that organizations are learning systems which utilize their knowledge to create value and to accumulate further knowledge, this study examines the influence of the scope of ERP implementation on a strategic resource of organizations, namely intellectual capital, under the moderating effect of organizational learning capability.  This study develops a research model to show the influence of the three dimensions of ERP implementation scope (breadth, depth, and magnitude) on intellectual capital and simultaneously the influence of organizational learning capability on these base relationships. The hypothesized relationships among variables are evaluated by a data set of 226 responses collected from manufacturing firms in Vietnam. With the support of SmartPLS version 2.0, the structural equation model is evaluated using the techniques of multiple regression analysis, and the moderation effects are analyzed using group comparison and product term approaches.  The findings provide support for the hypotheses. The three dimensions of ERP implementation show a positive impact on intellectual capital. Organizational learning capability more or less moderates the relationship between ERP implementation scope and intellectual capital. As a result of the group comparison approach for moderation analysis, firms with a low level of learning capability are likely to have no effect of ERP implementation on intellectual capital. However, in the group with a high level of learning capability the breadth and magnitude of ERP implementation have a positive effect on intellectual capital. By using the product term approach, only the magnitude of ERP implementation shows an interaction effect with organizational learning capability on intellectual capital. The breadth and depth of ERP implementation appear to have minimal interaction with organizational learning capability.  The results inform the literature on the business value of IT by demonstrating that an ERP system can become a strategic asset as its implementation has a positive effect on intellectual capital especially with the presence of a firm’s learning capability. Additionally, the research reveals another ERP effect (e.g. the effect on the intellectual capital of organizations) that complements the understanding of ERP effects that have been identified in prior studies. The findings practically contribute to managerial knowledge by showing that ERP implementation should not be considered in isolation, but rather organizations should build a substantial level of learning capability to fully obtain the positive effect of ERP implementation on intellectual capital.</p>

scholarly journals The relationship between enterprise resource planning (ERP) implementation and intellectual capital under the moderating effect of organizational learning capability

2021 ◽  
Author(s):  
◽  
Quang Nguyen
Keyword(s):  
Organizational Learning ◽  
Enterprise Resource Planning ◽  
Intellectual Capital ◽  
Resource Planning ◽  
Three Dimensions ◽  
Erp Systems ◽  
Erp Implementation ◽  
Learning Capability ◽  
Product Term ◽  
Positive Effect

<p>Although Enterprise Resource Planning (ERP) systems alone are not the source of competitive advantage, they may do this indirectly through enhancing or supplementing the organization’s other strategic resources. Studies on ERP have not explicitly examined the interactions of ERP systems with other organizational capabilities to determine how investment in ERP systems can be leveraged into the creation of strategic resources of organizations.  Further, ERP systems are large and complex, and the degree to which they are implemented throughout an organization can vary – this is described as the ERP scope. The scope of ERP implementation is believed to influence the degree of its effects on an organization. Relying on the literature on ERP effects, business value of information technology (IT) and the notion that organizations are learning systems which utilize their knowledge to create value and to accumulate further knowledge, this study examines the influence of the scope of ERP implementation on a strategic resource of organizations, namely intellectual capital, under the moderating effect of organizational learning capability.  This study develops a research model to show the influence of the three dimensions of ERP implementation scope (breadth, depth, and magnitude) on intellectual capital and simultaneously the influence of organizational learning capability on these base relationships. The hypothesized relationships among variables are evaluated by a data set of 226 responses collected from manufacturing firms in Vietnam. With the support of SmartPLS version 2.0, the structural equation model is evaluated using the techniques of multiple regression analysis, and the moderation effects are analyzed using group comparison and product term approaches.  The findings provide support for the hypotheses. The three dimensions of ERP implementation show a positive impact on intellectual capital. Organizational learning capability more or less moderates the relationship between ERP implementation scope and intellectual capital. As a result of the group comparison approach for moderation analysis, firms with a low level of learning capability are likely to have no effect of ERP implementation on intellectual capital. However, in the group with a high level of learning capability the breadth and magnitude of ERP implementation have a positive effect on intellectual capital. By using the product term approach, only the magnitude of ERP implementation shows an interaction effect with organizational learning capability on intellectual capital. The breadth and depth of ERP implementation appear to have minimal interaction with organizational learning capability.  The results inform the literature on the business value of IT by demonstrating that an ERP system can become a strategic asset as its implementation has a positive effect on intellectual capital especially with the presence of a firm’s learning capability. Additionally, the research reveals another ERP effect (e.g. the effect on the intellectual capital of organizations) that complements the understanding of ERP effects that have been identified in prior studies. The findings practically contribute to managerial knowledge by showing that ERP implementation should not be considered in isolation, but rather organizations should build a substantial level of learning capability to fully obtain the positive effect of ERP implementation on intellectual capital.</p>

Socio-Technical Change Perspective for ERP Implementation in Large Scale Organizations

2018 ◽  
pp. 2975-2987 ◽  
Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel
Keyword(s):  
Organizational Change ◽  
Enterprise Resource Planning ◽  
Large Scale ◽  
Resource Planning ◽  
Business Environment ◽  
Erp Systems ◽  
Erp Implementation ◽  
Firm Level ◽  
Erp System ◽  
Technical Theory

Organizations require to enhance their firm level resources to compete in turbulent business environment. Strategic application systems, such as an Enterprise Resource Planning (ERP) System is one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large scale organizational change and hence it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence this chapter applies a General Morphological Analysis(GMA) to identify the most suitable theory to analyse ERP implementation. Socio technical theory with Leavitt's diamond model was analysed as most appropriate since they are based on the of premises organizational change at firm level. Socio technical organizational change model will enable stakeholders to analyse resources required for core dimensions of the organization for ERP implementation.

An Investigation of Enterprise Resource Planning Implementation in a Small Firm

2013 ◽  
pp. 57-80
Author(s):  
Magdy Abdel-Kader ◽  
Thu Phuong Nguyen
Keyword(s):  
Decision Making ◽  
Small Firm ◽  
Enterprise Resource Planning ◽  
Implementation Process ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp Implementation ◽  
Erp System ◽  
Small Organizations ◽  
Selection Processes

Enterprise Resource Planning (ERP) systems have been recognized as complex and costly, which limited their implementation in large organizations. However, an increasing number of small organizations have recently gained interest in this system. This paper investigates the implementation process of ERP in a small firm. The investigation focused on two perspectives of ERP implementation: successes achieved and problems encountered. Despite many problems encountered in the firm, the ERP system still exists. This gives evidence that small organizations are more flexible and motivated to adapt to change and implement an ERP system. Most problems were encountered at early stages of implementation, which can be minimized if deliberate decision making of ERP implementation and proper selection processes were in place. Further, ERP is a good solution for small organizations if they are able to build a relevant in-house system.

An integrated framework for ERP system implementation

2017 ◽  
Vol 25 (1) ◽  
pp. 91-109 ◽  
Author(s):  
Kalinga Jagoda ◽  
Premaratne Samaranayake
Keyword(s):  
Enterprise Resource Planning ◽  
Critical Success Factors ◽  
Success Factors ◽  
Resource Planning ◽  
System Implementation ◽  
Erp Systems ◽  
Erp Implementation ◽  
Content Type ◽  
Erp System ◽  
Critical Success

Purpose The purpose of this paper is to propose an alternative integrated approach based on the stage-gate method to implement enterprise resource planning (ERP) systems which will enhance the effectiveness of ERP projects. Design/methodology/approach A literature review was conducted on ERP system implementation and its effectiveness. The need for improving implementation approaches and methodologies was examined. Based on the insights gained, a conceptual framework for ERP system implementation is presented by combining the state-gate approach with the pre-implementation roadmap. Findings The proposed framework aims to enhance the overall ERP implementation outcomes, ensuring critical success factors and eliminating common causes of failures. A pre-implementation roadmap is identified as a key element for eliminating many causes of failure including lack of organisations’ readiness for ERP. The post-implementation stage can be used for further improvements to the system through internal research and development. Research limitations/implications The development of the framework is an attempt to contribute to improving ERP implementation. This research is expected to motivate researchers to work in this area, and it will be beneficial to practicing managers in the identification of opportunities for improvements in ERP systems. Case studies will be valuable to refine and validate the proposed model. Originality/value This paper explores research in a needy area and offers a framework to help researchers and practitioners in improving ERP implementation. This framework is expected to reduce the implementation project duration, strengthen critical success factors and minimise common problems of ERP implementation projects.

Market Reaction to ERP Implementation Announcements

2001 ◽  
Vol 15 (1) ◽  
pp. 3-18 ◽  
Author(s):  
David C. Hayes ◽  
James E. Hunton ◽  
Jacqueline L. Reck
Keyword(s):  
Positive Reaction ◽  
Enterprise Resource Planning ◽  
Capital Market ◽  
Market Value ◽  
Resource Planning ◽  
Market Response ◽  
Business Organizations ◽  
Erp Systems ◽  
Erp Implementation ◽  
Erp System

The objective of this research is to examine how the capital market responds when a firm announces that it plans to implement an enterprise resource planning (ERP) system. This is the first study to investigate the extent to which ERP systems are deemed to add market value to business organizations. Study findings indicate an overall positive reaction to initial ERP announcements. Further analyses suggest that the reaction is most positive for small/healthy firms. Finally, the market response to larger ERP vendors, as reflected by PeopleSoft and SAP, is significantly more positive than to smaller ERP vendors.

ERP Implementation in Higher Education

2012 ◽  
pp. 128-156
Author(s):  
Adekunle Okunoye ◽  
Mark Frolick ◽  
Elaine Crable
Keyword(s):  
Higher Education ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Organizational Dynamics ◽  
Erp Systems ◽  
Erp Implementation ◽  
Erp System ◽  
Organizational Issues ◽  
Standard Information ◽  
System Selection

Enterprise Resource Planning (ERP) systems long have been known as systems that bring integration to numerous business activities within complex organizations. However, in today’s contemporary organizations, ERP systems are becoming a standard information system, irrespective of size and nature of the business. This case focuses on the implementation of an ERP system in higher education. The case covers the key stages of implementation. Particular emphasis is placed on the selection of the ERP system and the organizational dynamics involved. The implementation of the first two modules and the views of users are discussed. The depth of the case can enable managers to understand the complexity of an ERP system selection and the organizational issues involved. The analysis of the case sheds light on the activities involved in ERP projects and what to expect during the implementation stage.

ERP Adoption

2013 ◽  
pp. 146-154
Author(s):  
Jorge A. Romero
Keyword(s):  
Empirical Evidence ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Integrated Approach ◽  
Company Performance ◽  
Erp Systems ◽  
Erp Implementation ◽  
Strategic Investment ◽  
Functional Systems

Enterprise Resource Planning (ERP) has been a major investment for most companies since the early nineties. ERP is a type of investment that has an integrated approach, and has been widely adopted, but there is little empirical evidence about how ERP implementation affects company performance. This chapter begins with the discussion of ERP investment and its role as a commodity or as a strategic investment. Then follows a discussion of an industry in which companies have invested enormous amounts of money on ERP. Finally, in spite of the growing dominance of ERP systems, there is still little empirical evidence on the type of benefits that companies get from an ERP implementation. Therefore, it is important to understand the effects of ERP in cross-functional systems.

KESUKSESAN DAN KEGAGALAN IMPLEMENTASI SISTEM ERP: APAKAH KESALAHAN PERANTI LUNAK?

2015 ◽  
Vol 8 (1) ◽  
pp. 36
Author(s):  
Wahyu Agus Winarno
Keyword(s):  
Enterprise Resource Planning ◽  
Critical Success Factors ◽  
Success Factors ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp Implementation ◽  
Critical Success ◽  
Use Of Resources ◽  
Production And Distribution ◽  
Effective Use

Enterprise Resource Planning (ERP) are information systems that destined for firm manufacturing and also service that gets role to integrate and automates business process that is engaged operation aspect, production, and distribution at firm. ERP systems is a packaged business software system that enables a company to manage the efficient and effective use of resources and providing a total integrated solution for the organization's information-processing needs. But, ERP systems success own is not easily to be reached, because ERP software is not something that while is assembled/ implementation gets to walk success by itself. In this article tries to identify critical success factors (CSFs) ERP implementation. There are 14 CSFs and 10 failure factors that shall be regarded in the ERP Implementation. Keywords: ERP; ERP Implementation; critical success factors.

The Impact of Enterprise Resource Planning (ERP) Systems on the Audit Report Lag

2013 ◽  
Vol 10 (1) ◽  
pp. 63-88 ◽  
Author(s):  
Jongkyum Kim ◽  
Andreas I. Nicolaou ◽  
Miklos A. Vasarhelyi
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Test Results ◽  
Audit Report ◽  
Erp Systems ◽  
Erp Implementation ◽  
Accounting Systems ◽  
Business Operations ◽  
The Impact ◽  
The Relationship

ABSTRACT Prior research has shown that the implementation of ERP systems can significantly affect a firm's business operations and processes. However, scant research has been conducted on the relationship between ERP implementation and the timeliness of external audits, such as audit report lags. While some of the alleged benefits of ERP are closely related to removing impediments contributing to audit report lags, others argue that the complex mechanisms of ERP systems create greater complexity for control and audit. In this paper, we examine the relationship between ERP implementations and audit report lags. The test results indicate that overall, a firm's ERP implementation is negatively associated with audit report lag. However, this negative association is significant only at the fourth and fifth years after initial ERP implementation. These results imply that the use of ERP systems by client firms may help decrease the audit report lag, but it takes time for the full impact of the firms' accounting systems to be realized.

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