Enterprise resource planning systems, management control and the quest for integration

Dechow, Niels; Mouritsen, Jan

doi:10.1016/j.aos.2004.11.004

Cited by 351 publications

(334 citation statements)

References 21 publications

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“…Under this type of systems fall applications such as electronic data interchange (EDI), materials requirement planning (MRP), manufacturing resource planning (MRP-II) and enterprise resource planning (ERP) among others. Hence, the more an organization has not only adopted but rather assimilated or "mastered" the use of such applications, the greater its level of IT integration (Dechow and Mouritsen, 2005).…”

Section: It Integrationmentioning

confidence: 99%

Innovation Capability and Performance Of Manufacturing SMEs: The Paradoxical Effect of IT Integration

Raymond

Bergeron

Croteau

2013

Journal of Organizational Computing and Electronic Commerce

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In theory, IT integration through applications such as ERP, MRP-II and EDI provides an organization with the ability to exploit innovation capabilities. Based on survey data obtained from 309 Canadian manufacturing SMEs, this study aims to identify the enabling effect of IT integration upon the innovation capability of manufacturing SMEs, that is, in terms of growth and productivity outcomes, and to verify if this effect is subject to industry influences. While the firm's innovation capability was found as expected to be positively related to the growth and productivity of manufacturing SMEs, the results underline paradoxical effects of IT integration in this regard. While IT integration was seen to enable the innovation capability of manufacturing SMEs in terms of growth, it was also seen to have a disabling effect on this same capability with regard to productivity.Keywords: innovation capability, product innovation, process innovation, IT integration, R&D, growth, productivity, innovation, SME, paradox 2 Innovation Capability and Performance of Manufacturing SMEs:The Paradoxical Effect of IT Integration AbstractIn theory, IT integration through applications such as ERP, MRP-II and EDI provides an organization with the ability to exploit innovation capabilities. Based on survey data obtained from 309 Canadian manufacturing SMEs, this study aims to identify the enabling effect of IT integration upon the innovation capability of manufacturing SMEs, that is, in terms of growth and productivity outcomes, and to verify if this effect is subject to industry influences. While the firm's innovation capability was found as expected to be positively related to the growth and productivity of manufacturing SMEs, the results underline paradoxical effects of IT integration in this regard. While IT integration was seen to enable the innovation capability of manufacturing SMEs in terms of growth, it was also seen to have a disabling effect on this same capability with regard to productivity.Keywords: innovation capability, product innovation, process innovation, IT integration, R&D, growth, productivity, innovation, SME, paradox IntroductionInnovation has long been considered as the key factor for the survival, growth and development of small and medium-sized enterprises (SMEs) (Acs and Audretsch, 1990;Becheikh, Landry and Amara, 2006). Developing their capacity to innovate is a mission-critical task for all organizations. Given the specificities of SMEs with regard to their environment, strategy, structure and technology, more research in this specific context is thus needed, including information technology (IT) in particular (Gable and Stewart, 1999;Premkumar, 2003). These specificities also imply that research findings in the large enterprise context do not automatically extend to small companies (Thong, Yap and Raman, 1996;Pflughoeft et al., 2003). As SMEs differ from large organizations, a greater innovation capacity is deemed to counterbalance their greater vulnerability in a global business environment and in ...

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Section: It Integrationmentioning

confidence: 99%

Innovation Capability and Performance Of Manufacturing SMEs: The Paradoxical Effect of IT Integration

Raymond

Bergeron

Croteau

2013

Journal of Organizational Computing and Electronic Commerce

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“…While data integration is a core question in ERP systems (Dechow and Mouritsen, 2005;), the integration of financial and operational sales forecasts appears to be more controversial. Our findings are in line with those of Goodhue et al (1992) and their arguments that data integration can have both costs and benefits.…”

Section: Discussionmentioning

confidence: 99%

“…Hyvönen, 2003;Dechow and Mouritsen, 2005;). The key indicator of the degree of integration is the similarity of numbers.…”

Section: Integration Of Financial and Operational Sales Forecastsmentioning

confidence: 99%

The role of a predictive analytics project initiator in the integration of financial and operational forecasts

Huikku

Hyvönen

Järvinen

2017

BJM

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Purpose -This paper investigates the initiation of accounting information system projects. Specifically, it examines the role of the predictive analytics (PA) project initiator in the integration of financial and operational sales forecasts.Design/Methodology/Approach -The study uses a field study method to address the studied phenomenon in 8 Finnish companies that have recently adopted PA systems. The data is primarily based on 19 interviews in the companies and 5 interviews with the PA consultants.Findings -We found that initiators appear to play a major role regarding the degree of integration of financial and operational sales forecasts. The initiators from an accounting function have a tendency to pay more attention to the integration than the representatives from other functions, such as operations and sales.Practical Implications -Our study also makes a practical contribution to companies in showing and discussing the important role of the accounting department as an initiator of a project if the target is to achieve a tight coupling of financial and operational forecast figures, i.e., "one set of numbers." Originality/Value -Even though companies have increasingly adopted PA systems in recent years, we still know little about how the initiation affects the design of accounting information systems overall.

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“…It has been argued that such levels of integration are impossible to achieve in complex organisations, which will always 'drift' from their original, planned intentions [3,4,8,9]. Enterprise System implementations may influence human actors to ensure that their organisations appear more integrated [6], homogeneous [9], or controlled [2]. Others have argued that Enterprise System benefits are achieved, but after a delay [7].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Benefits from such systems come from integration, process optimisation, and improved access to information [1], although such benefits do not always eventuate [2][3][4][5][6][7][8][9][10]. Customers must benefit [11,12] in order to support strategies for long term survival in the market place [13][14][15][16][17].…”

Section: Introductionmentioning

confidence: 99%

Are Enterprise System benefits the same for Universities as they are for supermarkets?

Leonard¹,

Henriksen²

2012

Advances in Enterprise Information Systems II

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Enterprise Systems have become the default support systems for business processes in commercial organisations. Their promise of increased efficiency and effectiveness fits well with profit-based strategic objectives, and can be linked directly to customer choice. The last fifteen years have seen extensive implementation of Enterprise Systems in the University sector. While efficiency and effectiveness may be important in this sector, they are not linked directly to customer choice -the concept of a customer is complex, and choices may include many influences which are unaffected by administrative processes. Using one Australian and one Danish University as examples, an analysis of the benefits from using Enterprise Systems in Universities and in supermarkets is undertaken. There are some differences in the nature of those benefits. More importantly, differences in links between those benefits and the effect on customer choice are pronounced, with significant impacts for research and practical implications of Enterprise Systems.

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Enterprise resource planning systems, management control and the quest for integration

Cited by 351 publications

References 21 publications

Innovation Capability and Performance Of Manufacturing SMEs: The Paradoxical Effect of IT Integration

Innovation Capability and Performance Of Manufacturing SMEs: The Paradoxical Effect of IT Integration

The role of a predictive analytics project initiator in the integration of financial and operational forecasts

Are Enterprise System benefits the same for Universities as they are for supermarkets?

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