Adapting ERP Systems in the Post-implementation Stage: Dynamic IT Capabilities for ERP

Abstract

Background: Firms recently rely on enterprise systems, such as enterprise resource planning (ERP), to integrate, automate, and support business strategy and operations. However, uncertain environments require firms continuously adapt their ERP systems to meet changing business demands in the post-implementation stage. What capability can drive ERP post-implementation adaptation (PIA) deserves further research. Based on the dynamic capabilities view, we propose that dynamic IT capabilities for ERP, namely IT sensing, IT learning, IT integration, and IT coordination capability, can drive ERP-PIA. Method: A cross-sectional and matched-pair mail survey of both business and IS executives was administrated for collecting data from the top 1,000 manufacturing firms in Taiwan. Partial least squares structural equation model (PLS-SEM) was constructed for measurement validation and hypotheses testing. Results: Based on 128 samples (74 firms), our findings demonstrate the importance of the dynamic IT capabilities for achieving higher levels of ERP-PIA. ERP-PIA can facilitate greater organizational benefits from system use. Conclusions: This study conceptualizes and empirically demonstrates the importance of ERP-PIA, which provides a specific example of IT/IS adaptation. This study also conceptualizes dynamic IT capabilities for ERP, and theorizes how these capabilities interact to enable firms to adapt ERP systems to fulfill the emergent demands. This study improvs the understanding of the roles of dynamic IT capabilities for ERP in enabling ERP-PIA and organizational benefits through a richer theoretical framing than that of prior studies.