What is it about?
Investigates the influence of absorptive capacity on ERP assimilation. Absorptive capacity is conceptualized both as an asset and as a set of capabilities. The influence of organization's ownership is also examined in the study. Data from 51 organizations (public and private) are analyzed. Capabilities associated with absorptive capacity namely, cross-functional interfaces, and connectedness showed a significant influence on ERP assimilation. The results also pointed to the existence of a negative relationship between prior IT knowledge and ERP assimilation particularly in the case of private organizations compared to state-owned organizations.
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Why is it important?
Our study asserts that absorptive capacity in terms of knowledge integration capabilities play a critical role in ERP assimilation. It also affirms that merely having prior knowledge on ERP systems does not ensure the desired levels of ERP use, rather possessing the knowledge integration capabilities have a greater impact on achieving desired levels of ERP use.
Perspectives
The study results have implications to implementation success of ERP systems and any other enterprise system. The study
Madhavi Latha Nandi
T. A. Pai Management Institute
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This page is a summary of: Absorptive capacity and ERP assimilation: the influence of company ownership, Business Process Management Journal, June 2018, Emerald,
DOI: 10.1108/bpmj-11-2016-0228.
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