Understanding the Link Between Initial ERP Systems and ERP-Enabled Adoption

Understanding the Link Between Initial ERP Systems and ERP-Enabled Adoption

Joseph K. Nwankpa (The University of Texas Pan American, Edinburg, TX, USA), Yaman Roumani (Eastern Michigan University, Ypsilanti, MI, USA), Alan Brandyberry (Kent State University, Kent, OH, USA), Alfred Guiffrida (Kent State University, Kent, OH, USA), Michael Hu (Kent State University, Kent, OH, USA) and Murali Shanker (Kent State University, Kent, OH, USA)
Copyright: © 2013 |Pages: 22
DOI: 10.4018/irmj.2013100102
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Abstract

ERP systems have been identified as platform technologies that permit the adoption of subsequent technologies that leverage the information integration created by an ERP system. Although significant research attention has been directed at ERP system adoption, very little attention has been paid to understanding ERP-enabled adoption, that is, adoptions that occur and are facilitated after the initial ERP system. This paper seeks to fill this void. Synthesizing existing works, the authors construct a model that examines the link between initial ERP system and ERP-enabled adoption. The results indicate that initial ERP system factors (Extent of ERP Implementation and Current System Performance) act as antecedences to organizational ease of use and relative advantage of subsequent technologies. Moreover, the authors’ findings implicate that organizational ease of use and relative advantage of subsequent technologies have a positive impact on ERP-enabled adoption. These results have important implications for ERP system evaluation and justification. First, the findings highlight the importance of recognizing the potential additions and inherent benefits created by an initial ERP system. Second, the findings also underscore the importance of considering ERP-enabled adoption of subsequent technologies.
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2. Erp-Enabled Adoption

Technology enabled adoption allows firms to make strategic and positioning investment that supports and enhances initial adopted technologies (Fichman, 2004; Karimi et al., 2007; Karimi et al., 2009). In this paper, we define ERP-enabled adoption as adoptions that occur after the initial deployment of an ERP system which allows for the integration of subsequent technologies. These technologies include modules such as customer relationship management (CRM), supply chain planning, sales form automation and integrated e-commerce (McKie, 2001). ERP-enabled adoption attempts to leverage on the information superiority of an ERP system with additional software applications. Such adoption may include external systems that can extend functionalities such as connecting a website to an ERP system as well as improving visibility of information across a firms’ value chain.

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