Andreas I. Nicolaou

Perceived Information Quality in Data Exchanges: Effects on Risk, Trust, and Intention to Use

This study examines the role of information quality in the success of initial phase interorganizational (I-O) data exchanges. We propose perceived information quality (PIQ) as a factor of perceived risk and trusting beliefs, which will directly affect intention to use the exchange. The study also proposes that two important system design factors---control transparency and outcome feedback---will incrementally influence PIQ. An empirical test of the model demonstrated that PIQ predicts trusting beliefs and perceived risk, which mediate the effects of PIQ on intention to use the exchange. Thus, PIQ constitutes an important indirect factor influencing exchange adoption. Furthermore, control transparency had a significant influence on PIQ, while outcome feedback had no significant incremental effect over that of control transparency. The study contributes to the literature by demonstrating the important role of PIQ in I-O systems adoption and by showing that information cues available to a user during an initial exchange session can help build trusting beliefs and mitigate perceived exchange risk. For managers of I-O exchanges, the study implies that building into the system appropriate control transparency mechanisms can increase the likelihood of exchange success.

Firm Performance Effects in Relation to the Implementation and Use of Enterprise Resource Planning Systems

Research indicates that successful adoption of information technology to support business strategy can help organizations gain superior financial performance. The recent wave of enterprise‐wide resource planning systems adoptions is a significant commitment of resources and may affect almost all business processes. This study examines the effect of adoption of enterprise systems on a firms long‐term financial performance. A large‐scale data identification and collection method compared the financial data of 247 firms adopting enterprise wide systems with a matched control group of firms cross‐sectionally and longitudinally before and after adoption. A number of implementation characteristics were also measured and their effects assessed. The results show that firms adopting enterprise systems exhibit higher differential performance only after two years of continued use. Furthermore, controlling for implementation characteristics as vendor choice, implementation goal, modules implemented, and implementati...

Quality of postimplementation review for enterprise resource planning systems

This paper examines the process of system review during the postimplementation stage of an enterprise resource planning (ERP) system, or postimplementation review (PIR), and identifies factors that contribute to high-quality PIRs. The present study utilizes an exploratory, qualitative research approach in examining the concept of PIR and its potential importance in successful ERP system implementations. A case study methodology was employed that allowed detailed examination of significant events after the implementation of ERP systems in two different organizations. Insights from the case studies were subsequently used to conceptually define the construct of PIR quality, distinguish the construct from antecedent conditions during the implementation process and from potential outcomes, and propose a research model that could be useful in future empirical investigations. Past research efforts that addressed the extent to which organizations realize expected benefits from ERP system implementations could use this construct to reexamine performance relationships and more completely interpret their results (or lack of results) according to the extent to which organizations engage in high-quality PIRs. This study, therefore, presents contributions for both the practice and research on ERP system implementation effectiveness.

Sustainability of ERPS performance outcomes: The role of post-implementation review quality

This paper examines the nature and timing of post-implementation activities for ERPS adopting firms. We extend both the scope and granularity of prior literature to use seven categories of post-implementation activities theorized in the Nicolaou [Nicolaou, A.I. (2004b), “Quality of post-implementation review for enterprise resource planning systems” Int J Account Inf Syst 5 (May): pp. 25–49.] framework as our unit of analysis. We also examine the timing of those post-implementation events and classify firms in clusters characterizing the timing of such activities. We find that both the nature of post-implementation events and their timing are important for post-implementation change making firms. Specifically, ERPS change firms demonstrate improved differential performance as a result of their use of post-implementation activities that contribute to better system implementation planning and business process effectiveness when undertaken shortly after the initial system implementation. On the other hand, system deployment-related post-implementation activities that typically occur at later stages of system operation appear to have a negative impact on a firms short-run profitability. Our results should be of interest to ERPS adopting firms considering post-implementation changes. We find that no post-implementation change is universally good just as no timing is universally efficacious. Therefore, firms that match their post-implementation changes appropriately with the best timing for such changes stand to derive differential performance gains over peers that do not. However, some changes are inherently more risky.

Information quality, trust, and risk perceptions in electronic data exchanges

This study investigates the influence of information quality, trust and risk perceptions on the expected transaction performance of inter-organizational data exchanges and on the user intent to continue using the exchange. This study provides empirical evidence on the distinctive influences of information quality on competence-trust, goodwill-trust, exchange-risk and relationship-risk and how these different dimensions influence the intent to use inter-organizational data exchanges. As the performance of a data exchange may vary according to degree of successful completion of a specific transaction on the spot, this study also examines the extent to which expected transaction performance affects the model relationships. A survey is conducted to collect data from 221 business professionals. The studys hypothesized relationships are in general supported by the data and the resulting structural model proved to adequately represent the construct relationships. While these findings contribute to information system design theory, they also benefit professionals by providing insights as to how organizations can deal with the different types of uncertainties related to participating in electronic data exchanges. In addition, these findings help demonstrate the importance of interventions in the design of electronic data exchanges and the benefits expected by enhancing information quality in those settings. Highlights? Influence of information quality on the intent to use inter-organizational exchanges ? Evidence on how information quality affects trust and risk in I-O exchanges ? We examine mechanisms of competence-trust and goodwill-trust. ? We examine mechanisms of performance-risk and exchange-risk in data exchanges. ? We examine mediation influence of transaction performance, novel in the model.

Adoption of just-in-time and electronic data interchange systems and perceptions of cost management systems effectiveness ☆

Abstract The adoption of just-in-time (JIT) manufacturing techniques and electronic data interchange (EDI) systems that allow for the electronic exchange of data in the accounting and production processes, represent two significant dimensions of manufacturing strategy that might assist a firms operational ability to respond to demands of the new manufacturing environments. The specific manufacturing strategy of a firm influences the effective management of costs and the design of cost management systems (CMS). The primary motivation for this study is driven by the assumption that information needs for the support of strategic and operational decisions are influenced by the internal production and external environment of a manufacturing organization. The effective design and use of CMS should therefore assist in the successful implementation of manufacturing strategy. This study examines a number of research hypotheses that address these issues. The concepts and relationships involved with regard to cost management have not been considered in past research. An extensive sample selection process was carried out in order to identify organizations that had adopted JIT manufacturing techniques as well as EDI systems. The results of the empirical study were, in general, supportive of the hypothesized relationships. These results offer significant contributions to professionals and researchers. Suggestions for future research could extent the concepts and relationships presented.

Research issues on the use of ERPS in interorganizational relationships

The use of enterprise resource planning systems (ERPS) is a critical component of a firms strategy for the proper management and control of inter-organizational relationships. This research note utilizes recent research findings that bear on the effectiveness of the implementation and use of ERPS in business organizations and extends these findings in the inter-organizational context. The major purpose of this essay is to present theoretical bases on which future research could justify theoretical models and present theoretically-sound arguments for the examination of the use of ERPS in the management and control of inter-organizational relationships. The implications of a number of theories are examined, including: (a) the theory of co-opetition from organizational strategy, as it relates to the necessity for carrying out simultaneous activities in inter-organizational cooperation and competition, (b) the economic theory of complementarity, as it emphasizes interactions in different elements of organizational design and explains how different elements of organizational strategy and management process relate to one another, and (c) the real options theory from finance as it relates to the degree of managerial flexibility in making infrastructure investment decisions. Each of these theories offers important implications for the examination of use of ERPS in inter-organizational relationships. This essay develops a number of research propositions in order to motivate research in this area. Future research not only could benefit from these theoretical bases but also could make contributions for the extension of these theories in the use of ERPS for the management and control of inter-organizational relationships.

Manufacturing strategy implementation and cost management systems effectiveness

The fit between manufacturing strategy and the use of cost management systems that could effectively support a firms information needs in strategic and operational decision-making is prerequisite for a firms ability to attain desired objectives in its value chain. The primary purpose of this study is to examine the relationship between the use of just-in-time and electronic data interchange systems, as an important dimension of a firms manufacturing strategy, and the perceptions of top financial officers about the effectiveness of cost management systems in supporting strategic and operational decision needs. The results for the research hypothesis, which was examined using a sample of 604 manufacturing organizations in the USA, provided some support for the argument that perceptions of effectiveness of a firms CMS can be a valid indicator of how well is the CMS designed to support strategic and operational decision needs that are necessary for the implementation of a firms manufacturing strategy.

A Longitudinal Examination of Enterprise Resource Planning System Post-Implementation Enhancements

ABSTRACT:  Past information systems research on real options suggests that large-scale information technology projects, such as enterprise resource planning systems (ERPS), create various future options for system reconfiguration and extension. Management would decide whether to exercise an option according to future conditions. From the real options lens, we conduct a longitudinal examination of the determinants of post-implementation enhancement decisions for firms that have previously reported ERPS adoptions. We find that proactive ERPS adopters that employ performance-enhancing post-implementation review (PIR) practices and obtain favorable performance outcomes are more likely to make system enhancements. Evidence also shows that management likely makes joint decisions on PIR uses and ERPS enhancements, consistent with the view that managers perform gateway reviews at points where potential enhancement opportunities are present. Moreover, management tends to delay the enhancing decision until after th...

System Design Features and Repeated Use of Electronic Data Exchanges

Oftentimes researchers may not only generalize across a population, but may also extrapolate research findings across time. While either assumption can introduce difficulties, generalizing results in one time frame to another time frame may be especially perilous. We study a data exchange, and find that interventions designed to improve exchange features at two points in time have markedly varying effects, from an initial transaction use (time one) to a second transaction occurring two weeks later (time two). Our research objective is to test whether two system design features have the same effects on the intent to continue using an exchange in time two as they had in time one. The two features are control transparency (the availability of information cues) and interim shipping outcome feedback. These effects are mediated, in varying degrees, by perceived information quality. We use social exchange theory and social cognition theory to develop hypotheses regarding changes between time one (the first user transaction) and time two (the second transaction). These are tested using a combined experiment and survey. Supporting the theory, outcome feedback matters at time two even though it did not matter at time one. While control transparency has direct effects on a users intent to continue use of the exchange in time one, its effects are reduced in time two if negative outcome feedback is communicated to the user. Outcome feedbacks effects grow stronger from time one to time two vis-à-vis control transparencys effects. This underscores how critical it is to examine such phenomena at more than one period of time. The study also suggests different strategies for managing data exchanges based on the time frame of use. At the initial transaction use, the exchange should make transparent high-quality information cues to its user. At the next transaction, it should provide feedback showing properly fulfilled orders. These findings have implications for both future research examining effective data exchange design and for professionals who wish to enrich electronic data exchange interactions.