ERP Investments and the Market Value of Firms: Toward an Understanding of Influential ERP Project Variables

Ranganathan, C.; Brown, Clair

doi:10.1287/isre.1060.0084

Cited by 220 publications

(151 citation statements)

References 27 publications

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“…Findings on the role of Btask-technology fit^in translating usage to performance are further evidence of the significance of institutionalization (Goodhue and Thompson 1995). The fit between IT systems and organization context in the case of ERP implementations has been found repeatedly to influence their organization-level performance (Ettlie et al 2005;Ranganathan and Brown 2006). Across a diverse array of organizational technologies, usage and business process change are seen to work jointly in affecting productivity and overall organizational performance (Grover et al 1998).…”

Section: Utilization Facilitates Institutionalization With Both Drivmentioning

confidence: 97%

B2B relationship calculus: quantifying resource effects in service-dominant logic

deLeon

Chatterjee²

2015

J. of the Acad. Mark. Sci.

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Increasingly, knowledgeable business-to-business (B2B) customers and evolving customer needs are leading to seismic shifts in vendor-client interactions. Across industries, sellers are changing their business models from a simple goods orientation to a hybrid goods-services model, placing greater emphasis on delivering complete customer solutions. In such an environment, companies must find ways to prioritize investments in resource development. The servicedominant (S-D) logic framework offers significant insights into this challenge; however, these effects have not been tested quantitatively. This study addresses that gap, examining the influence of various seller resources on buyer satisfaction. An empirical analysis of buying organizations that purchased and implemented business intelligence systems finds that Baugmented^operant resources that the buyers ascribe to the software's sellers-resources that go above and beyond expectations-are the most significant predictors of both successful technology assimilation and overall customer relationship quality. In particular, an augmented operant resource reflecting a seller's ability to see value creation opportunities from the buyer's perspective (value mindset) has up to three times the effect on relationship satisfaction as Bcore^operant resources such as product-specific expertise or basic interpersonal service skills. These results can help sellers prioritize resource investments. Lusch 2004, 2008b) casts this question in terms of developing and applying Bresources^to create value. According to S-D logic, value is not intrinsic to the seller's Boperand resources^or tangible offerings such as physical products or software coupled with training or integration. Rather, sellers deliver value to buyers by applying operant resources such as skills and knowledge to the operand resources. Vargo and Lusch (2008a) maintain that the valuemaximizing application of resources-more than the specific goods-services offering mix-should be a company's primary marketing concern. To date, though, little quantitative analysis has been conducted to test the impact of these resources on value. Research has focused instead on classification systems (Madhavaram and Hunt 2008), consumer behavior (Arnould 2005), and conceptual integration into existing knowledge domains such as innovation theory (Michel et al. 2008). Recent qualitative studies have highlighted the importance of sellers customizing offerings and communicating value in customer-specific terms (Tuli et al. 2007;Ulaga and Reinartz 2011). But, again, the impact of such capabilities has yet to be assessed through quantitative analysis. Sci. (2017) 45:402-427 DOI 10.1007 Given the paradigmatic shift proposed by S-D logic, the first objective of our study is to quantitatively assess the extent to which both operant and operand resources affect value. We measure value in terms of project outcomes and customer relationship satisfaction. To do this we quantify relative effects both within operant resources, and betwe...

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Section: Utilization Facilitates Institutionalization With Both Drivmentioning

confidence: 97%

B2B relationship calculus: quantifying resource effects in service-dominant logic

deLeon

Chatterjee²

2015

J. of the Acad. Mark. Sci.

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“…Within the debate on the financial performance (See Table I), and its impact on the adoption of the ERP system, organizations also tend to take the aspects of tangible and intangible results on their investments very seriously too [57]. One of the key determinants in whether a firm adopts the ERP system or not depends on the way it perceives the value it gets from that particular system [58], [59]. Another perspective on the investments in ERP systems that organizations undertake is the link between the perceived performance of the firm, and the association of these returns with the ERP systems [4].…”

Section: E the Impact Of Financial Performance On Erp Acceptancementioning

confidence: 99%

Factors for the Acceptance of Enterprise Resource Planning (ERP) Systems and Financial Performance

Bazhair¹,

Sandhu²

2015

JOEBM

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Abstract-The purpose of this research paper to present the synthesized theoretical and empirical literature to help in the development of propositions and suggestions of a research agenda on the acceptance of ERP systems and their link with financial performance, the paper develops the technology acceptance model (TAM) to synthesize relevant literature and to develop proposition for future research agendas. The proposition and the research agenda will provide an adequate explanation of the acceptance of ERP systems, and their possible association with financial performance of organizations. The literature does provide a canon of acceptance of ERP systems in relation to financial performance. This research provides a positive association between the acceptance of ERP systems and financial performance. Also, the use of TAM theory provides further insight into identifying the acceptance factors of ERP.

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“…Our research fills this gap by examining IT and audit risk in an integrated research setting. Second, prior accounting literature, such as Hayes et al (2001), Ranganathan and Brown (2006), and Dorantes et al (2013), documents the effects of IT by using an indicator variable to represent whether companies implement Enterprise Systems specifically (ERP, SCM, CRM system, etc.) or not.…”

Section: Introductionmentioning

confidence: 99%

The Association between Information Technology Investments and Audit Risk

Han

Rezaee

Xue

et al. 2015

Journal of Information Systems

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SUMMARY:The advances in information technology (IT) have changed the way companies conduct business in using electronic commerce strategies, preparing financial reports and having their financial statements audited. Therefore, client firms' IT investments could have effects on audit risk. On one hand, the IT complexity creates challenges for auditors in auditing the effectiveness of internal control and detecting accounting irregularities. On the other hand, IT decreases audit risk by improving operation and internal control effectiveness which may decrease inherent and internal control risk. Yet, the relationship between clients' IT asset portfolios and audit risk remains an empirical question. Using proprietary IT data of US firms from 2000 to 2009, we find that IT investments are positively related to audit fees and abnormal audit fees, and negatively related to the probability of issuance of a going-concern audit opinion.Furthermore, we find that audit tenure moderates the above relationship due to the learning effect.

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ERP Investments and the Market Value of Firms: Toward an Understanding of Influential ERP Project Variables

Cited by 220 publications

References 27 publications

B2B relationship calculus: quantifying resource effects in service-dominant logic

B2B relationship calculus: quantifying resource effects in service-dominant logic

Factors for the Acceptance of Enterprise Resource Planning (ERP) Systems and Financial Performance

The Association between Information Technology Investments and Audit Risk

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