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Conceptualising ERP systems' value as a multidimensional formative construct

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  • Vikas Jain

Abstract

More than two decades of research on information technology (IT) value still leaves us with limited understanding of IT value and how to measure it in an organisation. In particular, for systems such as enterprise resource planning (ERP) systems where value can be realised across different dimensions at different points in time, the issue of measuring IT value becomes even more complicated. ERP systems have the potential to provide value across multiple dimensions from operational to managerial to strategic level. As with any other information technology, the value of ERP systems can be assessed using different metrics. The available methods of ERP value assessment such as financial performance indicators for the organisation do not provide multidimensional contribution of ERP systems. Very few studies in ERP value literature have quantitatively measured and validated ERP value across multiple dimensions. Using the balanced scorecard (BSC) approach, this study conceptualises and validates measures of ERP value across four dimensions of BSC: internal business oriented ERP value, customer-oriented ERP value, learning and growth-oriented ERP value, strategic and financial-oriented ERP value. The measurement model for ERP value indicates the robustness of measures used in the study.

Suggested Citation

  • Vikas Jain, 2016. "Conceptualising ERP systems' value as a multidimensional formative construct," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 21(4), pages 439-461.
    • Handle: RePEc:ids:ijbisy:v:21:y:2016:i:4:p:439-461
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