IDEAS home Printed from https://ideas.repec.org/a/eee/ijoais/v15y2014i2p166-184.html
   My bibliography  Save this article

Examine ERP post-implementation stages of use and value: Empirical evidence from Portuguese SMEs

Author

Listed:
  • Ruivo, Pedro
  • Oliveira, Tiago
  • Neto, Miguel

Abstract

There is a great interest among researchers and practitioners in accounting information systems (AIS) value. This is particularly important in cases of systems such as enterprise resource planning (ERP). This paper empirically measures and analyses the determinants of ERP use and value in a single framework, as well as provides empirical evidence from Portuguese small and medium enterprises (SMEs). Drawing upon theories on the process and contexts of information technology (IT) we postulate nine hypotheses. Used the technology–organization–environment (TOE) framework to hypothesize how compatibility, complexity, efficiency, best-practices, training, and competitive pressure explain ERP use. Based on the resource-based view (RBV) theory we hypothesize how ERP use, collaboration and analytics explain ERP value, and its potential contribution for the nature of management control and accounting information systems on Portuguese SMEs. Through structural equation modeling, a data set of 134 web-surveyed firms is used to test the hypotheses. Our empirical analysis leads to six main findings: 1) compatibility, complexity, best-practices, and efficiency are more important determinants for ERP use as well as training and competitive pressure, suggesting that technological, organizational and environmental characteristics are the main drivers of ERP use among Portuguese SMEs. 2) Similarly, collaboration and analytics are more important for ERP value upon use, suggesting that system capability characteristics are the main drivers of ERP value. 3) ERP value benefits from system enhancements to firms' business processes in the post-implementation phases. 4) For Portuguese SMEs the mostly valued metric attained through ERP is management control. 5) Impelled by legislation, Portuguese SMEs are using ERP as the accounting system for management, financial and tax accounting. 6) Portuguese SMEs invest more than 70% of their annual IT budget to ERP use. Together, these findings offer insights into how Portuguese SMEs use and extract value from ERP, and how enhancements positively impact the system's value. Unlike the typical focus on ERP adoption described in the literature, this research focuses on the post-implementation phase, linking actual use with value creation, adding an empirical study to the AIS literature.

Suggested Citation

  • Ruivo, Pedro & Oliveira, Tiago & Neto, Miguel, 2014. "Examine ERP post-implementation stages of use and value: Empirical evidence from Portuguese SMEs," International Journal of Accounting Information Systems, Elsevier, vol. 15(2), pages 166-184.
    • Handle: RePEc:eee:ijoais:v:15:y:2014:i:2:p:166-184
    DOI: 10.1016/j.accinf.2014.01.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1467089514000037
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.accinf.2014.01.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Granlund, Markus, 2011. "Extending AIS research to management accounting and control issues: A research note," International Journal of Accounting Information Systems, Elsevier, vol. 12(1), pages 3-19.
    2. Nicolaou, A. & Bhattacharya, S., 2008. "Sustainability of ERPS performance outcomes: The role of post-implementation review quality," International Journal of Accounting Information Systems, Elsevier, vol. 9(1), pages 43-60.
    3. Kristi Wenrich & Norita Ahmad, 2009. "Lessons Learned During a Decade of ERP Experience: A Case Study," International Journal of Enterprise Information Systems (IJEIS), IGI Global, vol. 5(1), pages 55-73, January.
    4. Kallunki, Juha-Pekka & Laitinen, Erkki K. & Silvola, Hanna, 2011. "Impact of enterprise resource planning systems on management control systems and firm performance," International Journal of Accounting Information Systems, Elsevier, vol. 12(1), pages 20-39.
    5. Kevin Zhu & Kenneth L. Kraemer, 2005. "Post-Adoption Variations in Usage and Value of E-Business by Organizations: Cross-Country Evidence from the Retail Industry," Information Systems Research, INFORMS, vol. 16(1), pages 61-84, March.
    6. Robert Scapens & Mostafa Jazayeri, 2003. "ERP systems and management accounting change: opportunities or impacts? A research note," European Accounting Review, Taylor & Francis Journals, vol. 12(1), pages 201-233.
    7. Zhang, Zhe & Lee, Matthew K.O. & Huang, Pei & Zhang, Liang & Huang, Xiaoyuan, 2005. "A framework of ERP systems implementation success in China: An empirical study," International Journal of Production Economics, Elsevier, vol. 98(1), pages 56-80, October.
    8. Quattrone, Paolo & Hopper, Trevor, 2005. "A 'time-space odyssey': management control systems in two multinational organisations," Accounting, Organizations and Society, Elsevier, vol. 30(7-8), pages 735-764.
    9. Bendoly, Elliot & Kaefer, Frederick, 2004. "Business technology complementarities: impacts of the presence and strategic timing of ERP on B2B e-commerce technology efficiencies," Omega, Elsevier, vol. 32(5), pages 395-405, October.
    10. Chapman, Christopher S., 2005. "Not because they are new: Developing the contribution of enterprise resource planning systems to management control research," Accounting, Organizations and Society, Elsevier, vol. 30(7-8), pages 685-689.
    11. Sarv Devaraj & Rajiv Kohli, 2003. "Performance Impacts of Information Technology: Is Actual Usage the Missing Link?," Management Science, INFORMS, vol. 49(3), pages 273-289, March.
    12. Randolph B. Cooper & Robert W. Zmud, 1990. "Information Technology Implementation Research: A Technological Diffusion Approach," Management Science, INFORMS, vol. 36(2), pages 123-139, February.
    13. Helmut Klaus & Michael Rosemann & Guy G. Gable, 2000. "What is ERP?," Information Systems Frontiers, Springer, vol. 2(2), pages 141-162, August.
    14. O'Leary,Daniel E., 2000. "Enterprise Resource Planning Systems," Cambridge Books, Cambridge University Press, number 9780521791526, October.
    15. Michelle Antero & Philip Holst Riis, 2011. "Strategic Management of Network Resources: A Case Study of an ERP Ecosystem," International Journal of Enterprise Information Systems (IJEIS), IGI Global, vol. 7(2), pages 18-33, April.
    16. Dechow, Niels & Mouritsen, Jan, 2005. "Enterprise resource planning systems, management control and the quest for integration," Accounting, Organizations and Society, Elsevier, vol. 30(7-8), pages 691-733.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haberli, Caetano, Jr. & Oliveira, Tiago & Yanaze, Mitsuru, 2017. "Understanding the determinants of adoption of enterprise resource planning (ERP) technology within the agri- food context: the case of the Midwest of Brazil," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(5).
    2. Fábio Albuquerque & Paula Gomes Dos Santos, 2023. "Recent Trends in Accounting and Information System Research: A Literature Review Using Textual Analysis Tools," FinTech, MDPI, vol. 2(2), pages 1-27, April.
    3. Maria C. Solano & Juan C. Cruz, 2024. "Integrating Analytics in Enterprise Systems: A Systematic Literature Review of Impacts and Innovations," Administrative Sciences, MDPI, vol. 14(7), pages 1-26, June.
    4. Prasad, Acklesh & Green, Peter, 2015. "Governing cloud computing services: Reconsideration of IT governance structures," International Journal of Accounting Information Systems, Elsevier, vol. 19(C), pages 45-58.
    5. Maduku, Daniel K. & Mpinganjira, Mercy & Duh, Helen, 2016. "Understanding mobile marketing adoption intention by South African SMEs: A multi-perspective framework," International Journal of Information Management, Elsevier, vol. 36(5), pages 711-723.
    6. Sunday C. Eze & Vera C. A. Chinedu-Eze & Clinton K. Okike & Adenike O. Bello, 2020. "Critical factors influencing the adoption of digital marketing devices by service-oriented micro-businesses in Nigeria: A thematic analysis approach," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-14, December.
    7. Sunday C. Eze & Vera C. A. Chinedu-Eze & Clinton K. Okike & Adenike O. Bello, 2020. "Factors influencing the use of e-learning facilities by students in a private Higher Education Institution (HEI) in a developing economy," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-15, December.
    8. Sangho Lee & Cheolho Yoon, 2022. "Factors of the Adoption of O2O Service Platforms: Evidence from Small Businesses in Korea," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    9. Abdalwali Lutfi & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Manaf Al-Okaily & Hamza Alqudah & Mohamed Saad & Nahla Ibrahim & Osama Abdelmaksoud, 2022. "Antecedents and Impacts of Enterprise Resource Planning System Adoption among Jordanian SMEs," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    10. Côrte-Real, Nadine & Oliveira, Tiago & Ruivo, Pedro, 2017. "Assessing business value of Big Data Analytics in European firms," Journal of Business Research, Elsevier, vol. 70(C), pages 379-390.
    11. Habib Saragih, Arfah & Ali, Syaiful & Suwardi, Eko & Utomo, Hargo, 2024. "Finding the missing pieces to an optimal corporate tax savings: Information technology governance and internal information quality," International Journal of Accounting Information Systems, Elsevier, vol. 52(C).
    12. Fildes, Robert & Goodwin, Paul, 2021. "Stability in the inefficient use of forecasting systems: A case study in a supply chain company," International Journal of Forecasting, Elsevier, vol. 37(2), pages 1031-1046.
    13. Banafo Akrong, Godwin & Yunfei, Shao & Owusu, Ebenezer, 2022. "Development and validation of an improved DeLone-McLean IS success model - application to the evaluation of a tax administration ERP," International Journal of Accounting Information Systems, Elsevier, vol. 47(C).
    14. Agata Mesjasz-Lech, 2016. "Changes in the Use of ERP Systems Supporting Enterprise Logistics in Poland – Sectoral Analysis," Proceedings- 11th International Conference on Mangement, Enterprise and Benchmarking (MEB 2016),, Óbuda University, Keleti Faculty of Business and Management.
    15. Sayeed Salih & Samah Abdelsalam & Mosab Hamdan & Ashraf Osman Ibrahim & Anas W. Abulfaraj & Faisal Binzagr & Omayma Husain & Abdallah Elhigazi Abdallah, 2022. "The CSFs from the Perspective of Users in Achieving ERP System Implementation and Post-Implementation Success: A Case of Saudi Arabian Food Industry," Sustainability, MDPI, vol. 14(23), pages 1-24, November.
    16. Raquel Pérez Estébanez, 2024. "An Approach to Sustainable Enterprise Resource Planning System Implementation in Small- and Medium-Sized Enterprises," Administrative Sciences, MDPI, vol. 14(5), pages 1-12, April.
    17. Shen, Ching-Cheng & Yeh, Chien-Chi & Lin, Chun-Nan, 2022. "Using the perspective of business information technology technicians to explore how information technology affects business competitive advantage," Technological Forecasting and Social Change, Elsevier, vol. 184(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kallunki, Juha-Pekka & Laitinen, Erkki K. & Silvola, Hanna, 2011. "Impact of enterprise resource planning systems on management control systems and firm performance," International Journal of Accounting Information Systems, Elsevier, vol. 12(1), pages 20-39.
    2. Lauri Lepistö, 2014. "Taking information technology seriously: on the legitimating discourses of enterprise resource planning system adoption," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 25(3), pages 193-219, December.
    3. Taipaleenmäki, Jani & Ikäheimo, Seppo, 2013. "On the convergence of management accounting and financial accounting – the role of information technology in accounting change," International Journal of Accounting Information Systems, Elsevier, vol. 14(4), pages 321-348.
    4. Teittinen, Henri & Pellinen, Jukka & Järvenpää, Marko, 2013. "ERP in action — Challenges and benefits for management control in SME context," International Journal of Accounting Information Systems, Elsevier, vol. 14(4), pages 278-296.
    5. Kanellou, Alexandra & Spathis, Charalambos, 2013. "Accounting benefits and satisfaction in an ERP environment," International Journal of Accounting Information Systems, Elsevier, vol. 14(3), pages 209-234.
    6. Rikhardsson, Pall & Yigitbasioglu, Ogan, 2018. "Business intelligence & analytics in management accounting research: Status and future focus," International Journal of Accounting Information Systems, Elsevier, vol. 29(C), pages 37-58.
    7. How, Shi-Min & Alawattage, Chandana, 2012. "Accounting decoupled: A case study of accounting regime change in a Malaysian company," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(6), pages 403-419.
    8. Daniela Ruggeri & Carmela Rizza, 2017. "Accounting information system innovation in interfirm relationships," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(2), pages 203-225, May.
    9. Knudsen, Dan-Richard, 2020. "Elusive boundaries, power relations, and knowledge production: A systematic review of the literature on digitalization in accounting," International Journal of Accounting Information Systems, Elsevier, vol. 36(C).
    10. Berry, A.J. & Coad, A.F. & Harris, E.P. & Otley, D.T. & Stringer, C., 2009. "Emerging themes in management control: A review of recent literature," The British Accounting Review, Elsevier, vol. 41(1), pages 2-20.
    11. Escobar-Rodríguez, Tomás & Bartual-Sopena, Lourdes, 2015. "Impact of cultural factors on attitude toward using ERP systems in public hospitals," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 18(2), pages 127-137.
    12. Liew, Angela, 2015. "The use of technology-structured management controls: changes in senior management’s decision-making behaviours," International Journal of Accounting Information Systems, Elsevier, vol. 17(C), pages 37-64.
    13. Huh, Young Eun & Kim, Sang-Hoon, 2008. "Do early adopters upgrade early? Role of post-adoption behavior in the purchase of next-generation products," Journal of Business Research, Elsevier, vol. 61(1), pages 40-46, January.
    14. Jack, Lisa & Kholeif, Ahmed, 2008. "Enterprise Resource Planning and a contest to limit the role of management accountants: A strong structuration perspective," Accounting forum, Elsevier, vol. 32(1), pages 30-45.
    15. Francesca Maria Cesaroni & Domenico Consoli, 2015. "ICT e piccole imprese. Il Cubo della Predisposizione Tecnologica Aziendale," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2015(1), pages 73-100.
    16. Sameh Ammar & Ghassan H. Mardini, 2021. "Enterprise resource planning enabling segmental information reporting practices of UK‐FTSE 100," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(1), pages 1205-1237, March.
    17. A. Beldi & Walid Cheffi, 2008. "Etat De La Recherche Anglophone Et Francophone En Systemes D'Information Comptables Sur La Periode 1990 - 2007," Post-Print halshs-00522339, HAL.
    18. Thorsten Knauer & Nicole Nikiforow & Sebastian Wagener, 2020. "Determinants of information system quality and data quality in management accounting," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(1), pages 97-121, April.
    19. Abhay Nath Mishra & Prabhudev Konana & Anitesh Barua, 2007. "Antecedents and Consequences of Internet Use in Procurement: An Empirical Investigation of U.S. Manufacturing Firms," Information Systems Research, INFORMS, vol. 18(1), pages 103-120, March.
    20. Andreas G. Georgantopoulos & Evangelos I. Poutos & Nikolaos Eriotis, 2018. "Recent Developments and Trends in Accounting Information Systems," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 3(1), pages 1-9.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ijoais:v:15:y:2014:i:2:p:166-184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-accounting-information-systems/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.