Abstract:For decades, practitioners and scholars have focused on achieving optimal values in and benefits from enterprise resource planning (ERP) systems. Given that scholars have identified ERP systems as having option-like characteristics such as the capacity to create an information technology (IT) platform that enables the adoption of subsequent function-specific applications, we face a need to explore the linkage between post-ERP systems implementation and subsequent ERP-enabled technology adoption. We used real options theory to explore the underlying relationship between the initial ERP system implementation and subsequent technology adoptions. We surveyed 519 IT executives in the United States and found that the level of technology uncertainty, managerial flexibility, and formal real option analysis in ERP adoption decisions influenced the organizational relative advantage of subsequent non-ERP technologies. Our results also reveal that the level of uncertainty had a negative relationship with ERP-enabled technology adoption, while formal real option analysis in ERP adoption decisions positively influenced ERP-enabled adoption.
Purpose
This paper aims to examine the dynamic relationship between digital business intensity (DBI) and process innovation through knowledge management. More specifically, the paper investigates the mechanism through which DBI and knowledge management jointly influence process innovation.
Design/methodology/approach
The study used a single informant approach of data collection and consistent with prior research, and a random sample of CIOs was selected and invited to participate in the survey resulting in a total 193 usable responses. The analysis and empirical validation of the research model used partial least square.
Findings
The results reveal a positive link between DBI and process innovation. This finding presents empirical support for hitherto anecdotal evidence regarding the impact of DBI on process innovation. In particular, the study notes the impactful role of DBI as an input repertoire that facilitates knowledge management with subsequent positive effects on process innovation. Results further surface an accentuating interplay between DBI and knowledge management on process innovation.
Originality/value
The current study advances our understanding of how DBI, a pre-condition to attaining digital business strategy, influences process innovation. Moreover, investigating the consequences of DBI should help offer an initial insight to managers and top management facing the challenge of implementing a successful digital footprint in an increasingly digital business landscape. Furthermore, to the best of the authors’ knowledge, this study is the first to investigate how digitization efforts and knowledge management practices jointly affect process innovation.
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