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ERIC Number: ED534927
Record Type: Non-Journal
Publication Date: 2011
Pages: 302
Abstractor: As Provided
Reference Count: N/A
ISBN: ISBN-978-1-1249-1657-6
The Drivers of ERP Implementation and Its Impact on Organizational Capabilities and Performance and Customer Value
Hwang, Woosang
ProQuest LLC, Ph.D. Dissertation, The University of Toledo
In a constantly changing global business environment, firms have no other choice but to continually expand their capabilities and sharpen their competitive edge. Toward this goal, an increasing number of organizations are turning to Enterprise Resource Planning (ERP) systems. An ERP system utilizes various kinds of information processing capabilities and places the gathered data into a single database. Thus, an ERP system is often considered to be a vital element in organizational infrastructure for enhanced visibility and improved performance. ERP implementation, however, brings not only gain but also pain. A growing amount of evidence suggests that ERP system implementation does not always result in enhanced organizational performance. Implementing an ERP system is expensive and time consuming, and firms often fail to obtain the benefits of ERP investments within the anticipated timeframe. Because of its impact on the organization, ERP implementation must be viewed and undertaken from the perspective of the entire organization and environment, not just as a software installation. Until now, many researchers have only focused on studying the critical success factors in ERP implementation; little attention has been given to the impact of external and internal factors upon ERP implementation. Moreover, researchers have paid little attention to the impact of ERP implementation on suppliers' capabilities, organizational capabilities, and customer value. In addition, not many researchers emphasize the importance of integration, configuration, adaptation, and user training in the course of implementing an ERP system. Drawing from the contingency theory, a resource-based perspective, and dynamic capabilities theory, this study develops a conceptual model and empirically examines the impact of external and internal environments upon successful ERP implementation. This research makes a contribution to the literature by proposing a conceptual model that investigates the causal relationships among eight variables: (1) the internal and (2) external factors that influence ERP implementation, (3) actual ERP implementation, (4) supplier capabilities, (5) organizational capabilities, (6) supplier performance, (7) organizational performance, and (8) customer value. Through the literature review, 37 sub-constructs for external and internal environment, ERP implementation, supplier/organizational capabilities, supplier/organizational performance, and customer value were identified. Potential measurement items were generated through a literature review and from construct definitions. The measurement items developed for these 37 sub-constructs were tested through structured interviews and Q-sort. Final testing of the instruments was performed through responses from 205 Korean manufacturing firms. Structural equations modeling (PLS) methodology were used for the testing of relationships among constructs. Research findings support the notion that organizational readiness and resources led by external environment would affect ERP implementation and further organizational capabilities and performance. It also supports the relationship between ERP implementation and organizational capabilities as well as between ERP implementation and supplier capabilities. Organizational capabilities were highlighted as the mediating variable between ERP implementation and organizational performance. This research found out that customer value is the ultimate outcome of ERP implementation. It also identified the key dimensions that firms should consider in the course of implementing ERP systems. It did not support, however, the relationship between external environment and ERP implementation. The nature of this relationship appears to be indirect rather than direct, being mediated through internal environment. Recommendations for future research and implications for academics and practitioners are provided. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page:]
ProQuest LLC. 789 East Eisenhower Parkway, P.O. Box 1346, Ann Arbor, MI 48106. Tel: 800-521-0600; Web site:
Publication Type: Dissertations/Theses - Doctoral Dissertations
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: South Korea