ERP use: exclusive or complemented?
| Date | 01 July 2006 |
| DOI | https://doi.org/10.1108/02635570610671498 |
| Published date | 01 July 2006 |
| Pages | 811-824 |
| Author | Liane Elbertsen,Jos Benders,Ed Nijssen |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
ERP use: exclusive or
complemented?
Liane Elbertsen, Jos Benders and Ed Nijssen
Nijmegen School of Management, Radboud University, Nijmegen,
The Netherlands
Abstract
Purpose – The purpose of this paper is to provide insight into the antecedents of ERP use and use of
alternative software packages simultaneously.
Design/methodology/approach – An exploratory model was composed based on literature on
adoption and diffusion of innovations in general and ERP in specific. The model was tested using a
sample of 486 Dutch midsized enterprises of the electrical, engineering and metal industries. Using two
regression analyses we identify the effect of ERP related factors on ERP adoption and the
simultaneous use of alternative software solutions.
Findings – ERP adoption is significantly related to ERP complexity (positive), ERP compatibility
(negative), IT competence (negative), and ERP sellers’ marketing efforts (positive). For the ERP
adopters that also use other software packages the following relationships were significant: ERP’s
additional flexibility, ERP compatibility (positive), IT competence (positive), ERP sellers’ marketing
efforts (negative), and company size.
Research limitations/implications – As any sample, ours is limited and the findings may be
validated among other populations. In-depth qualitative research may help gaining deeper insights
into actual decision processes.
Practical implications – Companiesconsidering investing in ERP are aware of the influence sellers
might have; companies should consider alternatives to ERP systems to overcome flexibility problems
emanating from ERP use. This will most likely help to maintain their competitive advantage in the
marketplace. It will require some internal IT competence to help make the right decisions, i.e. balance
need for integration of software and product/service differentiation towards customers.
Originality/value – This is the first paper on the issue of the exclusive use of ERP systems versus
the simultaneous use of alternative packages.
Keywords Manufacturingresource planning, Computer software,Innovation, Competences,
Communicationtechnologies, The Netherlands
Paper type Research paper
Introduction
Despite the substantial investments involved and the often far-reaching economic,
organizational, and social consequences, the use of ERP systems shows continuous
growth (Al-Mashari, 2003; Huang et al., 2004a, b). The magnitude of ERP’s managerial
implications has resulted in many publications on purchasing motivations and
implementation problems encountered (McAdam and Galloway, 2005). These include
many reports about disappointing results of ERP system implementation and
performance (Ho et al., 2004; Howcroft et al., 2004; Trimi et al., 2005). The apparent
contrast between widespread use on the one hand, and frequently occurring
disappointments on the other hand, leads one to wonder what drives ERP system
adoption. Organizations can also choose for less encompassing and thus less complex
and cheaper information system alternatives. Compared to ERP systems, these are
often custom-built with a better fit to local situations. Moreover, the latter may help to
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ERP use:
exclusive or
complemented?
811
Industrial Management & Data
Systems
Vol. 106 No. 6, 2006
pp. 811-824
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635570610671498
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