Supply chain collaboration for ERP implementation

Abstract

Purpose The purpose of this paper is to develop and empirically test a conceptual framework to analyze how inter-organizational knowledge sharing facilitates enterprise resource planning (ERP) implementation. Design/methodology/approach Data were collected from a 2014 survey on 283 Chinese companies. Structural equation modeling was used to test the structural model of the framework. Findings The results of the study indicated that organizational preparedness (in terms of internal culture, organizational structure, availability of resources, and technological capabilities), positive benefits and costs perception, and external influences (in terms of environmental uncertainty, competitive pressure, and partner readiness) would facilitate inter-organizational knowledge sharing, which in turn, would enhance ERP implementation effectiveness. Research limitations/implications Convenience samples from an author’s MBA classes were used in the survey, and a single respondent from each organization answering all questions for such complicated issues also posed the risk of measurement bias and inaccuracy. Practical implications The study provided evidences to practitioners about how organizations should collaborate with supply chain partners at a full scale in knowledge generation, maintenance, dissemination, and application in order to enhance their effectiveness on ERP implementation. Originality/value ERP projects are predominately observed in existing research as internal initiatives that companies take independently within their own organizational boundaries. This study represents one of the early large-scale empirical efforts to investigate ERP implementation from an inter-firm supply chain collaboration perspective. Additional contribution includes some interesting empirical evidences on the current state of ERP utilization in the Chinese market.