IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxy2017i2ap3-15.html
   My bibliography  Save this article

The Moderating Effect of Industry Environments on the Relationship between IT Asset Portfolios, Efficiency and Innovation in the ERP Context

Author

Listed:
  • Wahyu Agus Winarno
  • Bambang Tjahjadi

Abstract

Technology investments in the form of ERP systems tend to align the company's information technology (IT) asset portfolio with two main performance results are efficiency and innovation. This study examines the influence of industrial environment on the relationship between IT asset portfolio with efficiency and innovation. The research model is tested using data from 104 observations gathered from 26 companies for 4 years (2009-2012), and data analysis is conducted using a moderated regression analysis.The results show that increase in value of IT assets portfolio will improve operational efficiency, and innovation companies. Furthermore, we find that the industry environment is not moderate the relationship between the of IT asset's portfolio with operational efficiency.On the other hand, industrial environments statistically significant affect the relationship between the IT asset portfolios with innovations. The results imply that the company has implemented an ERP system, investment in IT is not oriented towards the exploitation of IT, but tends to increase the exploration process to the form of innovation.

Suggested Citation

  • Wahyu Agus Winarno & Bambang Tjahjadi, 2017. "The Moderating Effect of Industry Environments on the Relationship between IT Asset Portfolios, Efficiency and Innovation in the ERP Context," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 3-15.
    • Handle: RePEc:ers:journl:v:xx:y:2017:i:2a:p:3-15
    as

    Download full text from publisher

    File URL: http://www.ersj.eu/repec/ers/papers/17_2_A_p1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Karel HavlÃ­Ä ek & Eleftherios Thalassinos & Liliana Berezkinova, 2013. "Innovation Management and Controlling in SMEs," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 57-70.
    2. Nirup M. Menon & Byungtae Lee & Leslie Eldenburg, 2000. "Productivity of Information Systems in the Healthcare Industry," Information Systems Research, INFORMS, vol. 11(1), pages 83-92, March.
    3. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    4. N.N. Kosinova & M.S. Tolstel & S.P. Sazonov & K.D. Vaysbeyn, 2016. "Development of Methodological Approach to Enterprise’s Financial Strategy Based on Comprehensive Evaluation of Its Strategic Potential," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 21-33.
    5. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    6. Byungtae Lee & Anitesh Barua, 1999. "An Integrated Assessment of Productivity and Efficiency Impacts of Information Technology Investments: Old Data, New Analysis and Evidence," Journal of Productivity Analysis, Springer, vol. 12(1), pages 21-43, August.
    7. Nikolaos Theriou & Vassilis Aggelidis, 2014. "Management Accounting Systems, Top Management Team’s Risk Characteristics and Their Effect on Strategic Change," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 3-38.
    8. Landon Kleis & Paul Chwelos & Ronald V. Ramirez & Iain Cockburn, 2012. "Information Technology and Intangible Output: The Impact of IT Investment on Innovation Productivity," Information Systems Research, INFORMS, vol. 23(1), pages 42-59, March.
    9. Anna Kolchanova & Polina Kolchanova, 2015. "Solving Enterprise Management Problem with Cluster Technologies and ERP – Systems (in the Context of Capital CSE System)," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 299-306.
    10. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    11. V.A. Bondarenko & T.V. Parkhomenko & T.B. Erokhina & N.V. Guzenko, 2017. "Marketing and Logistic Instrumentarium of Activation of Inter-Country Cooperation of Russia and Solving the Issue of Import Substitution," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 105-116.
    12. Norbert Lebrument & Catherine de La Robertie, 2016. "Top Managers Networking Influence on Competitive Intelligence Practices: the Case of Hi-Tech SMBs," Post-Print halshs-03219129, HAL.
    13. repec:ers:journl:v:xvi:y:2013:i:sisme:p:57-70 is not listed on IDEAS
    14. Jiri Mihola & Jana Kotesovcova & Petr Wawrosz, 2016. "Intensity and Extensity of Firm Development and Dynamic Dupont Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 53-63.
    15. Olesya Stroeva & Innara R. Lyapina & Elena E. Konobeeva & Oksana E. Konobeeva, 2015. "Effectiveness of Management of Innovative Activities in Regional Socio-Economic Systems," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 63-76.
    16. Catherine De La Robertie, 2016. "Top Managers Networking Influence on Competitive Intelligence Practices: the Case of Hi-Tech SMBs," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 158-169.
    17. Sarath W.S.B. Dasanayaka & G D Sardana, 2015. "Development of Small and Medium Enterprises through Clusters and Networking: A Comparative Study of India, Pakistan and Sri Lanka," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 84-108.
    18. Sinan Aral & Peter Weill, 2007. "IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation," Organization Science, INFORMS, vol. 18(5), pages 763-780, October.
    19. Paul Chwelos & Ronald Ramirez & Kenneth L. Kraemer & Nigel P. Melville, 2010. "Research Note ---Does Technological Progress Alter the Nature of Information Technology as a Production Input? New Evidence and New Results," Information Systems Research, INFORMS, vol. 21(2), pages 392-408, June.
    20. Erik Brynjolfsson & Lorin Hitt, 1996. "Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending," Management Science, INFORMS, vol. 42(4), pages 541-558, April.
    21. Rai, A. & Patnayakuni, R. & Patnayakuni, N., 1996. "Refocusing where and how IT value is realized: An empirical investigation," Omega, Elsevier, vol. 24(4), pages 399-412, August.
    22. E.S. Akopova & N.V. Przhedetskaya & P.V. Taranov & L.N. Roshchina, 2017. "Marketing Mechanisms for the Development of Transport Infrastructure of Russia and the EU," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 188-197.
    23. Tatiana Epifanova & Nikolay Romanenko & Tatiana Mosienko & Tatyana Skvortsova & Alexandr Kupchinskiy, 2015. "Modernization of Institutional Environment of Entrepreneurship in Russia for Development of Innovation Initiative in Small Business Structures," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 137-148.
    24. Nikolaos Theriou & Vassilis Aggelidis & Georgios Theriou, 2014. "The Mediating Effect of the Knowledge Management Process to the Firm’s Performance: A Resource-Based View," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 87-114.
    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. Ngatno & Apriatni, Endang P, 2020. "Moderation Effects of Organisational Environment on the Relationship between Capital Structure and Financial Performance of Central Java Rural Banks, Indonesia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(1), pages 78-93, January.
    2. Alexandra Christopoulou & Panos Gialelis, 2021. "Addressing the Challenge of Customer Management for SMEs," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 71(3-4), pages 68-85, July-Dece.
    3. Winarno, Wahyu Agus & Tjahjadi, Bambang & Irwanto, Andry, 2021. "Time Lag Effects of IT Investment on Firm Performance: Evidence from Indonesia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(3), pages 89-101.

    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. Valeriy Vladimirovich Shlychkov & Ilgam Kiyamovich Kiyamov & Asya Shamilevna Khasanova & Sergey Mikhaylovich Kulish & Diana Rustamovna Nestulaeva, 2017. "Hands-on Management: Theoretical and Methodological Approaches and Russian Practice of State and Municipal Management," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 200-223.
    2. Stefan Schweikl & Robert Obermaier, 2020. "Lessons from three decades of IT productivity research: towards a better understanding of IT-induced productivity effects," Management Review Quarterly, Springer, vol. 70(4), pages 461-507, November.
    3. Eva Maria Lado Gonzalez & Domingo Calvo Dopico, 2017. "The Importance of Intangible Assets in the Strategic Management of the Firm: An Empirical Application for Banco Santander," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 177-196.
    4. Kamil R. Bibarsov & Natalia V. Kretova & Elena Yu. Popova, 2017. "Improvement of Innovative Forms as a Tool for Effective Development of Small Business," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 98-110.
    5. Guzelbaeva Gulshat Talgatovna & Novikov Dmitry Sergeevich & Astafieva Liliya Kabirovna, 2017. "Correlation of Logistics and Marketing Functions in Modern Russia," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 140-149.
    6. O.V. Andreeva & E.V. Shevchik, 2017. "Organizational and Financial Modeling of Transnational Industrial Clusters Sustainable Development: Experience, Risks, Management Innovation," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 137-147.
    7. Dennis O. Kundisch & Neeraj Mittal & Barrie R. Nault, 2014. "Research Commentary —Using Income Accounting as the Theoretical Basis for Measuring IT Productivity," Information Systems Research, INFORMS, vol. 25(3), pages 449-467, September.
    8. Farichah Farichah, 2017. "Management Compensation and Auditor Reputation on Earnings Management and on Share Returns," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 196-208.
    9. Sunil Mithas & M. S. Krishnan & Claes Fornell, 2016. "Research Note—Information Technology, Customer Satisfaction, and Profit: Theory and Evidence," Information Systems Research, INFORMS, vol. 27(1), pages 166-181, March.
    10. Sunghun Chung & Animesh Animesh & Kunsoo Han & Alain Pinsonneault, 2019. "Software Patents and Firm Value: A Real Options Perspective on the Role of Innovation Orientation and Environmental Uncertainty," Information Systems Research, INFORMS, vol. 30(3), pages 1073-1097, September.
    11. V.A. Bondarenko & N.V. Demyanchenko & O.V. Ivanchenko & O.N. Mirgorodskaya, 2017. "Role of Staff Marketing in Increasing Business Performance," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 320-325.
    12. T.O. Grafova & M.M. Skorev & L.Yu. Andreeva & I.R. Kirischeeva, 2017. "Tools of Financial Management of Reputational Risks," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 280-299.
    13. Sunil Mithas & Jonathan Whitaker & Ali Tafti, 2017. "Information Technology, Revenues, and Profits: Exploring the Role of Foreign and Domestic Operations," Information Systems Research, INFORMS, vol. 28(2), pages 430-444, June.
    14. Carolina Rojas-Córdova & Amanda J. Williamson & Julio A. Pertuze & Gustavo Calvo, 2023. "Why one strategy does not fit all: a systematic review on exploration–exploitation in different organizational archetypes," Review of Managerial Science, Springer, vol. 17(7), pages 2251-2295, October.
    15. Orsatti, Gianluca & Pezzoni, Michele & Quatraro, Francesco, 2017. "Where Do Green Technologies Come From? Inventor Teams’ Recombinant Capabilities and the Creation of New Knowledge," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201711, University of Turin.
    16. Yuk, Hyeyeon & Garrett, Tony C., 2023. "Does customer participation moderate the effects of innovation on cost-based financial performance? An examination of different forms of customer participation," Journal of Business Research, Elsevier, vol. 156(C).
    17. Al-Atwi, Amer Ali & Amankwah-Amoah, Joseph & Khan, Zaheer, 2021. "Micro-foundations of organizational design and sustainability: The mediating role of learning ambidexterity," International Business Review, Elsevier, vol. 30(1).
    18. Jatinder S. Sidhu & Harry R. Commandeur & Henk W. Volberda, 2007. "The Multifaceted Nature of Exploration and Exploitation: Value of Supply, Demand, and Spatial Search for Innovation," Organization Science, INFORMS, vol. 18(1), pages 20-38, February.
    19. Christina Fang & Jeho Lee & Melissa A. Schilling, 2010. "Balancing Exploration and Exploitation Through Structural Design: The Isolation of Subgroups and Organizational Learning," Organization Science, INFORMS, vol. 21(3), pages 625-642, June.
    20. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.

    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:ers:journl:v:xx:y:2017:i:2a:p:3-15. 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: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    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.