Skip to Main Content
 

Global Search Box

 
 
 
 

Files

File List


toledo1310159208.pdf (2.09 MB)

ETD Abstract Container

Abstract Header

The Drivers of ERP Implementation and Its Impact on Organizational Capabilities and Performance and Customer Value

Hwang, Woosang
http://rave.ohiolink.edu/etdc/view?acc_num=toledo1310159208

Abstract Details

2011, Doctor of Philosophy, University of Toledo, Manufacturing and Technology Management.
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.
Mark Vonderembse (Committee Co-Chair)
T.S. Ragu-Nathan (Committee Co-Chair)
Jenell Wittmer (Committee Member)
Iryna Pentina (Committee Member)
Peter Lindquist (Committee Member)
Abraham Nahm (Committee Member)
301 p.
Information Systems; Information Technology; Management
Enterprise Resource Planning; Organizational Capabilities; Organizational Performance; Customer Value; Supplier Capabilities; External and Internal Environment

Recommended Citations

Citations

  • Hwang, W. (2011). The Drivers of ERP Implementation and Its Impact on Organizational Capabilities and Performance and Customer Value [Doctoral dissertation, University of Toledo]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=toledo1310159208

    APA Style (7th edition)

  • Hwang, Woosang. The Drivers of ERP Implementation and Its Impact on Organizational Capabilities and Performance and Customer Value. 2011. University of Toledo, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=toledo1310159208.

    MLA Style (8th edition)

  • Hwang, Woosang. "The Drivers of ERP Implementation and Its Impact on Organizational Capabilities and Performance and Customer Value." Doctoral dissertation, University of Toledo, 2011. http://rave.ohiolink.edu/etdc/view?acc_num=toledo1310159208

    Chicago Manual of Style (17th edition)

toledo1310159208
15,492
© 2011, all rights reserved.
This open access ETD is published by University of Toledo and OhioLINK.