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ERP Competence-Building Mechanisms: An Exploratory Investigation of Configurations of ERP Adopters in the European and U.S. Manufacturing Sectors

Author

Listed:
  • Andrea Masini

    (Department of Management Science and Operations - London Business School)

  • Luk van Wassenhove

    (INSEAD - Institut Européen d'administration des Affaires)

Abstract

This paper contributes to the literature on enterprise resource planning (ERP) by pursuing two objectives. First, it identifies configurations of ERP adopters that have similar needs and develop similar competencies. Second, it tests the hypothesis that, to maximize benefits from their ERP projects, organizations should align their ERP competence-building mechanisms with the ERP needs that arise from their operational environment. The analysis of a sample of manufacturing companies that implemented ERP between 1995 and 2001 uncovers four distinct configurations representing different degrees of fit between needs and competence-building mechanisms: the frugal ERP, the extensive business process reengineering (BPR), the adaptive ERP, and the straitjacket. The results support our hypothesis and suggest that the consequences of a misfit between needs and competence-building mechanisms are more severe for companies that operate in complex and dynamic environments and have informal organizational structures than for firms with rigid structures that operate in simple and stable environments.

Suggested Citation

  • Andrea Masini & Luk van Wassenhove, 2009. "ERP Competence-Building Mechanisms: An Exploratory Investigation of Configurations of ERP Adopters in the European and U.S. Manufacturing Sectors," Post-Print hal-00516135, HAL.
    • Handle: RePEc:hal:journl:hal-00516135
    DOI: 10.1287/msom.1080.0215
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    Citations

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    Cited by:

    1. Hsin Chang & Chung-Jye Hung & Kit Wong & Chin-Ho Lee, 2013. "Using the balanced scorecard on supply chain integration performance—a case study of service businesses," Service Business, Springer;Pan-Pacific Business Association, vol. 7(4), pages 539-561, December.
    2. Neirotti, Paolo & Pesce, Danilo & Battaglia, Daniele, 2021. "Algorithms for operational decision-making: An absorptive capacity perspective on the process of converting data into relevant knowledge," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    3. Rita Di Mascio, 2016. "Firms’ adoption of self-service technology: how managerial beliefs shape co-production decisions," AMS Review, Springer;Academy of Marketing Science, vol. 6(1), pages 79-97, June.
    4. Melek Akın Ateş & Robert Suurmond & Davide Luzzini & Daniel Krause, 2022. "Order from chaos: A meta‐analysis of supply chain complexity and firm performance," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(1), pages 3-30, January.
    5. Aleda Roth & Eve Rosenzweig, 2020. "Advancing Empirical Science in Operations Management Research: A Clarion Call to Action," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 179-190, January.

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