Pedro Ruivo

ERP use and value: Portuguese and Spanish SMEs

Purpose – Consistent with the diffusion of innovation (DOI) model and resource‐based view (RBV) theory, the purpose of this paper is to develop a research model for measuring enterprise resource planning (ERP) post‐adoption and its consequence on small and medium enterprise (SME) performance.Design/methodology/approach – The model links six determinants based on DOI to explain “ERP use” and three on RBV to explain the “ERP value”, on which nine hypotheses are postulated. Testing was conducted through structural equation modelling, utilizing data from 558 web‐surveyed firms in Portugal and Spain.Findings – Full sample analysis finds that competitive pressure, training, best‐practices, compatibility, and efficiency are important antecedents of “ERP use”. Together with usage, collaboration and analytics capabilities contribute to “ERP value”. Cross‐country analysis reveals that complexity is an important inhibitor for “ERP use” in Portuguese firms whereas it is a facilitator for Spanish firms. In addition, w...

Using resource-based view theory to assess the value of ERP commercial-packages in SMEs

Theoretically grounded on RBV, this study assesses ERP value amongst European SMEs.Large scale survey from 883 SMEs from Denmark, Portugal, Spain and Sweden.Differences and similarities in ERP value across four commercial-packages are examined.Variations in ERP value across Microsoft, Oracle, SAP and SAGE are found in regards to system use, collaboration and analytics capabilities. This study explores the enterprise resource planning (ERP) variations in value on small and medium enterprises (SMEs) across four commercial-packages (Microsoft NAV, SAP All-in-one, ORACLE JDE, and SAGE X3). Grounded on the resource-based view (RBV) theory of the firm, we assess a research model linking three determinants; ERP use, collaboration, and analytics to explain the ERP value in three effects (individual productivity, management control, and customer satisfaction). Using a survey data set of 883 firms across European SMEs we test the theoretical model through structural equation modelling. This study provides empirical evidence on how European SMEs find value from the top four commercial-packaged ERPs. Whereas for Dynamics and ORACLE the most important factor is analytics system capability, for SAP and SAGE it is greater collaboration system capability. Furthermore, for SAP and ORACLE greater ERP use is perceived as an important factor, but not for Dynamics and SAGE. In addition, the study finds that both collaboration and analytics capabilities are the greatest differentiators to ERP value, which is consistent with the RBV. The finding provide guidance to business implementation strategies and to software development. The limitations and future work of the study are noted.

ERP Post-adoption: Use and Value – An Empirical Study on Portuguese SMEs

Both academics and practitioners have a growing interest in information technology (IT) value. This is particularly important in cases of systems such as enterprise resource planning (ERP), as the use of these systems involves significant investment. In this study we seek to measure and examine determinants of ERP use and value. Based on the diffusion of innovation (DOI) literature to explain ERP use and resource-based view (RBV) theory to explain ERP value, we develop a research model, on which nine hypotheses are postulated for measuring ERP in post-adoption stages and its consequences on Portuguese small and medium enterprise (SME) performance. The model was tested through structural equation modelling (SEM) on a dataset of 134 firms web-surveyed. We find that compatibility, best practices, complexity, efficiency, training, and competitive pressure are important determinants of ERP use. Together with use, collaboration and analytics capabilities will contribute to ‘ERP value’. Even though this study provides insight into how SMEs use and extract value from ERP, unlike the typical focus on ERP adoption reported in the literature, this study focuses on post-adoption stages, linking actual usage with value creation.

Enterprise resource planning and customer relationship management value

Purpose The purpose of this paper is to develop and test a theoretical model to measure the impact of enterprise resource planning (ERP) and customer relationship management (CRM) systems and moderating relationships of system and process integration on business value. Design/methodology/approach ERP and CRM systems are analysed with the resource-based view theory and measured by their impact on business value, having in consideration the moderation of system and process integration. The model was tested and analysed with data collected by Microsoft, from firms that have adopted both ERP and CRM systems in their organisation. Findings ERP system is found to be an important asset to business value, but CRM systems’ impact on business value is found to be not significant. System integration as moderator of ERP or CRM system is found to be not significant but has a positive and significant impact on business value. For process integration, the study finds that it is significant only when moderating the CRM system variable. Research limitations/implications The model shows that the moderating effects of system and process integration are important variables for understanding the joint business value of ERP and CRM. Practical implications Adopting an ERP system and ensuring system integration provides a direct impact on business value. In order for a CRM system to have a positive impact on business value, process integration with ERP system must be ensured. Originality/value This study provides new knowledge on how ERP and CRM systems used together may positively influence value from IT investments, and how systems integration and process integration provide business value.

Empirical Study on Differences and Similarities in ERP Usage Amongst European SMEs

This chapter evaluates the determinants of enterprise resource planning (ERP) usage among small and medium-sized enterprises (SMEs). We empirically test six determinants (compatibility, complexity, efficiency, best-practices, training and competitive pressure) based on the diffusion of innovation (DOI) model to explain ERP actual usage across four European countries. Through structural equation modelling (SEM) on a dataset of 883 web-surveyed firms, we explore the differences and similarities in usage across Denmark, Portugal, Sweden, and Spain. The cross-country analysis reveals that while for Portuguese and Swedish firms, SMEs system compatibility is an important facilitator for ERP usage; it is an inhibitor for Danish firms. Moreover, whereas system complexity is an important inhibitor for ERP usage in Portuguese and Danish firms, it is a facilitator for Spanish firms. Additionally, while for Portuguese, Danish, and Swedish firms, transactional efficiency is significant, it is not so for Spanish firms. In addition, best-practices and competitive pressure are important determinants of ERP usage for all SMEs across all countries. Training is an important facilitator for Portuguese and Spanish SMEs. The main finding is that Portuguese and Spanish SMEs show different results despite the fact that they seem to be so similar and the same prevails among Danish and Swedish SMEs. The fact that this research is based on a large-scale survey across countries makes it important to understand the actual ERP usage among SMEs, alongside its value in adding an international dimension to the DOI literature.