Journal of Enterprise Information Management

The impact of enterprise application integration on stock prices : Table of Contents

Narcyz Roztocki, Heinz Roland Weistroffer — Sat Oct 31 08:00:32 GMT 2009

Abstract:
Purpose – Enterprise application integration (EAI) technologies are critical to functionally integrate diverse corporate computer systems, and as such may be expected to have a positive effect on business value. The purpose of this paper is to examine the market reaction to announcements of EAI investments as a surrogate for investor perceived business value of such technology. Design/methodology/approach – An event study approach is used with 81 announcements of EAI investments between 1998 and 2005, taken from Lexis-Nexis database. Findings – The results suggest that investors do not always receive EAI investments positively, especially if the announcements are from financially distressed companies and if market conditions are unfavorable. Research limitations/implications – Limitations include the possibility of confounding events, possible bias in the identified announcements, and our focus on EAI technology only. Future research may try to better account for confounding events, identify a more comprehensive list of relevant announcements, and also look at other technologies. Practical implications – Managers should not view EAI technology as a panacea for organizational problems. Financial markets mostly respond negatively to EAI announcements when the announcing company is perceived as an investment risk or the announcement is released during bear market conditions. Originality/value – This study expands the existing body of knowledge on IT contribution to market value. The focus on EAI technology allows for better comparison of results and testing of hypotheses. Also new is the finding that perceived company risk as well as market conditions play an important role in the reaction to IT investment announcements.

Consolidation of performance measures in a supply chain environment : Table of Contents

Murali Sambasivan, Tamizarasu Nandan, Zainal Abidin Mohamed — Sat Oct 31 08:00:32 GMT 2009

Abstract:
Purpose – Many researchers have stressed the importance of using the right measures and metrics to manage a supply chain efficiently and effectively and have developed them from different perspectives. The basic purpose of this paper is to consolidate the measures and metrics that have been developed so far, verify the relevance of these measures from the practitioners, produce a usable list with proper classification (database), and demonstrate the use of this database through a case study. Design/methodology/approach – An initial list of metrics and measures is consolidated after analyzing the literature (journals and books) and web sites that deal with supply chains and conducting interviews with industry practitioners. A questionnaire is designed with these measures and metrics and is sent to 300 companies within the electronics industry in Malaysia to obtain feedback from the industry practitioners about the relevance of these measures. A case study is conducted with an electronics manufacturing company to demonstrate the use of the database to identify relevant measures and metrics. Findings – About 838 performance measures form the initial list. From these, the practitioners consider 159 important and very important measures and 135 are in use in the industry. The entire list of measures is classified into the following metrics: Fund flow, Internal process flow, Material flow, Sales and services flow, Information flow, and Partner evaluation. These metrics are further classified into different groups of measures using confirmatory factor analysis. Research limitations/implications – Only the industry practitioners from electronics industry in Malaysia participate in the study to identify the relevant measures and metrics. Originality/value – The paper will be valuable to the academicians and practitioners working to develop measures and metrics for manufacturing supply chains.

What determines user satisfaction in ERP projects: benefits, barriers or risks? : Table of Contents

Ömür Y. Saatçioglu — Sat Oct 31 08:00:32 GMT 2009

Abstract:
Purpose – The purpose of this paper is to identify the effects of benefits, barriers and risks on user satisfaction in ERP projects. Design/methodology/approach – ERP systems are costly and complex systems. They require heavy investments. ERP systems provide a lot of benefits. However, there are some barriers that need to be solved during implementation if maximum of benefits is aimed. If barriers are not solved adequately, they become drivers of risks. Benefits, barriers and risks have important effects on user satisfaction. Post implementation reviews are important tools to gain insights about the effect of benefits, barriers and risks on user satisfaction. However, post implementation reviews of ERP projects are not commonly realized. First, a literature review on ERP benefits, barriers and risks is conducted. Second, benefits, barriers and risks are checked with their effects on user satisfaction in ERP projects. The research is conducted in a branch of a multinational firm. A questionnaire consisting of statements related with benefits, barriers, risks and user satisfaction is used. The questionnaire is given to 32 individuals; 25 of whom respond to the questionnaire. Findings – The findings suggest that in this case study benefits are more effective on user satisfaction in ERP projects. Originality/value – This research puts forward an example for a post implementation review. However, the results show that firms aiming to succeed in ERP projects should emphasize benefits.

A planned-oriented approach for EPR implementation strategy selection : Table of Contents

Guido Capaldo, Pierluigi Rippa — Sat Oct 31 08:00:32 GMT 2009

Abstract:
Purpose – The purpose of this paper is to propose a methodological approach aimed at identifying technical and organizational capabilities firms should have before the ERP implementation process starts, in order to select the more appropriate implementation strategy and the change management interventions to support the selected strategy. Design/methodology/approach – Capabilities to implement ERP system are selected on the basis of a literature review and through focus group session in collaboration with the company partner of the project. Then, a methodological approach is proposed on the basis of such capabilities. Scales of the capabilities are built, and an algorithm to analyze and evaluate firms' capabilities is proposed. Findings – The methodological approach has been tested through a validation experiment with the company partner of the research project. Results reveal the usefulness of the methodology in estimating the capabilities that firms should have in order to select the more appropriate implementation strategy. Research limitations/implications – Further research is under development in order to validate the methodological approach through a case study. Practical implications – Starting from the methodological approach a useful tool could be developed to analyze technical and organizational capabilities of the firm, and to select the more appropriate ERP implementation strategy. Originality/value – The methodological approach is the result of a research project based on tight collaboration between academic researchers and IT managers involved in ERP implementation processes. Thanks to such collaboration, tacit knowledge and expertise accumulated by IT managers during ERP implementation processes was explicated and evaluated in the proposed methodology. The result is a model that goes beyond descriptive analysis and offers prescriptive advice on how to address the potential challenges prior to and during the implementation processes.

The relationship between benefits of ERP systems implementation and its impacts on firm performance of SCM : Table of Contents

Chyan Yang, Yi-fen Su — Sat Oct 31 08:00:32 GMT 2009

Abstract:
Purpose – The purpose of this paper is to provide managers with a critical insight into the relationship between the benefits of enterprise resource planning (ERP) systems implementation and the impacts on firm performance of supply chain management (SCM). Design/methodology/approach – This study proposes a structural equation modeling (SEM) to analyze the relationship between ERP benefits and SCM performance. Hypotheses derived from the key benefits of adopting ERP system and related SCM practices presented by previous authors. An empirical survey is conducted to collect data from Taiwanese IT companies listed in the Taiwan Stock Exchanges on several aspects of firm competences and supply chain performance that adopted ERP systems and/or SCM systems. Findings – The results confirm the operational, tactical, and strategic benefits of ERP for the firm performance of SCM in the internal and external business processes, customer service, and cost management, except for the strategic benefits of ERP are not significant predictors of SCM performance in the external business process. Furthermore, responses show that ERP implementations in these Taiwanese companies have a significant impact on other companies, both small and medium-size enterprise (SME), within the global supply chain. Originality/value – This study extends research efforts concerning the relationship between ERP benefits and SCM performance, which the unequivocally positive results are not surprising, yet differ from most of other studies. This fundamental framework is expected not only to aid managers to make better decisions on how they cultivate specific SCM competences but also to conclude that future research can extend the focus to the impact on SCM competences of the aid of external tools such as supplier/customer relationship management, and internet-based collaborative commerce systems.