Enterprise resource planning and business model innovation: process, evolution and outcome

Abstract

Purpose The purpose of this paper is to focus on the implementation process of enterprise resource planning (ERP), the evolution of business model innovation (BMI) and the organizational outcome. This research analyses how ERP and BMI are related and, in turn, what is the final the impact on organizational performance. Design/methodology/approach The sample consisted on 104 organizations from different industries, all of which used an ERP software. A structural equation model was used to test the six hypotheses. Findings The results indicate that the BMI constructs considered (i.e. value-generation and organizational complexity) mediate the impact of the ERP constructs (organizational adaptation and organizational resistance), in organizational performance. Successful ERP implementation is not an end itself for this companies, but merely a path and a process for improving the business model with the aim improving performance in the marketplace. Research limitations/implications This study offers a new outlook on how a company should leverage the ERP adaptation, and any resistance in the organization to innovating in the business model. This study is rooted in the evolutionary perspective of BMI, but it also integrates into an overall model other points of view such as the rational positioning view and cognitive view. Practical implications Organizations must understand the ERP flows in depth, each ERP flow is the work result of a multitude of companies over several years. All departments, and in particular the research and development department must participate actively in the ERP implementation. Organised complexity means opportunities for success in the market. Organizations must train their departments in ERP and not just teach them how the ERP works. ERP implementation needs consider improvements to the business model and ultimately the performance, but not separately. Originality/value BMI has received contributions from several domains such as entrepreneurship, management organization and strategic management among others. Nonetheless, the role of ERP in BMI is far from being understood and the few contributions focus only on technology per se. To the best of our knowledge this is the first study that has explored the connections of ERP and BMI and in turn the final outcome in organizational performance.

Business Model Innovation Based on New Technologies and Its Influence on a Company’s Competitive Advantage

“…In the literature these "elements" can be seen from different perspectives, e.g., [4,11,12]. However, many researchers [13][14][15] point out that resources possessed by a company have a special place among different BMI elements.…”

Priorities Determining Future Directions of Sustainable Development in Business Models of the Healthcare Industry—Findings and Framework

“…In the healthcare industry, hospital supply chain networks are characterized by technological complexity, which is a factor closely related to business model innovation needs [13], rapid shifts in technology and medical innovation, and the existence of multiple stakeholders [3]. In the healthcare industry, as in many others, there is constant pressure to improve business models through innovation, to fulfil customer expectations and compete for market share [14,15].…”

The Roles of Enterprise Resource Planning and Management Control on Knowledge Sharing

“…Majority ERP definitions, taken from the IT perspective, describe the systems as a set of packaged application software modules with an integrated architecture that can be used by organisations as the primary engine for integrating data, processes and information technology, in real-time, across internal and external value chains (Motiwalla & Thompson 2012;Zaglago et al 2016;Bhumgara & Sayyed 2017). Only recent the enterprise system has been viewed from users' perspective as Rouhani and Mehri (2018) and Rodriguez et al (2020) depict ERP as an alternative for users' complex interface and disperse information systems standardise and automatise inter-functional transactions. Sánchez-Rodríguez and Spraakman (2012) criticise those businesses tend to concentrate on the information/report generated by the systems, without realising the usefulness of systems to improve the business process a broader perspective.…”

“…This paper contributes to research on ERP and MC by examining their role in promoting organisational KS. Considering the emerging interest in discussing ERP from a business perspective (Huang et al 2019;Rodriguez et al 2020), this study adds knowledge to the theory and practice by exploring the attributes of ERP systems pertinent to the business users. Although ERP is undoubtedly valuable to the business, little discussion has been on the operationalisation of the systems (Sánchez-Rodríguez & Spraakman 2012).…”