Understanding the local-level costs and benefits of ERP through organizational information processing theory
Information & ManagementPublished 22 September 2003
Thomas F. Gattiker, Dale L. Goodhue
Citations274
SJR quartileQ1
SJR score2.92
SNIP2.74
Generate an AI Snapshot to get a quick, structured summary of this paper.
Study Snapshot
ObjectiveStudy objective
MethodsResearch methodology
PopulationPopulation studied
Sample sizeSample sizes
OutcomesStudy outcomes here
ResultsStudy results comes here
LimitationsResearch study limitations comes here
A concise AI-generated summary of the paper will appear here once you click Generate AI Snapshot.
TL;DR
Using organizational information processing theory (OIPT), several factors that influence some of the enterprise resource planning (ERP) costs and benefits that organizations are experiencing are suggested.
Abstract
Using organizational information processing theory (OIPT), we suggest several factors that influence some of the enterprise resource planning (ERP) costs and benefits that organizations are experiencing. Though we do not attempt to address all important factors that contribute to an ERPs impact, we suggest two organizational characteristics that may have received insufficient attention in other ERP literature: interdependence and differentiation. High interdependence among organizational sub-units, contributes to the positive ERP-related effects because of ERPs ability to coordinate activities and facilitate information flows. However, when differentiation among sub-units is high, organizations may incur ERP-related compromise or design costs. We provide a case study that explores the viability of this framework. The case describes some local-level impacts of ERP and provides some evidence of the validity of the model. Unexpected findings are also presented.
Keywords
Business, Management and Accounting
Management ScienceOrganizational Information Requirements, Media Richness and Structural Design
9,556 Citations1986Richard L. Daft, Robert H. Lengel
Models are proposed that show how organizations can be designed to meet the information needs of technology, interdepartmental relations, and the environment to both reduce uncertainty and resolve equivocality.
Administrative Science QuarterlyEducational Organizations as Loosely Coupled Systems
7,206 Citations1976Karl E. Weick
PubMedPutting the enterprise into the enterprise system.
3,278 Citations1998Thomas H. Davenport
The author discusses the pros and cons of implementing an enterprise system, showing how a system can produce unintended and highly disruptive consequences and cautions against shifting responsibility for its adoption to technologists.
INFORMS Journal on Applied AnalyticsOrganization Design: An Information Processing View
2,330 Citations1974Jay R. Galbraith
The purpose of this paper is to explain why task uncertainty is related to organizational form, and why the cognitive limits theory of Herbert Simon was the guiding influence.
Academy of Management ReviewInformation Processing as an Integrating Concept in Organizational Design<sup />.
1,950 Citations1978Michael L. Tushman, David A. Nadler
The review suggests a contingency approach to design which develops a feasible set of structural alternatives from which the organization can choose.
Information & ManagementThe critical success factors for ERP implementation: an organizational fit perspective
1,159 Citations2002Kyung-Kwon Hong, Young‐Gul Kim
The results from the field survey of 34 organizations show that ERP implementation success significantly depends on the organizational fit of ERP and certain implementation contingencies, which indicates that the root of such high failure rate is explored from an "organizational fit" perspective.
Information Systems FrontiersThe ERP Revolution: Surviving vs. Thriving
478 Citations2000Jeanne W. Ross, Michael R. Vitale
The research describes the stages of ERP implementation, the obstacles that firms encountered in generating benefits from the systems, and some critical success factors for getting business value from the implementation of an ERP system in business.
MIS QuarterlyThe Impact of Data Integration on the Costs and Benefits of Information Systems
386 Citations1992Dale L. Goodhue, Michael D. Wybo +1 more
This model suggests that the benefits of data integration will outweigh costs only under certain situations, and probably not for all the data the organization uses, so MIS researchers and practitioners should consider the need for better conceptualization and methods for implementing "partial integration" in organization.
PubMedThe subordinate's predicaments.
301 Citations1979Eric H. Neilsen, J Gypen
The authors present dilemmas that commonly confront the subordinate and point out that being aware of these dilemma can make them more manageable and then offer advice to superiors to aid subordinates in handling such situations.
Manufacturing Strategy
251 Citations2000Terry Hill
Sap R/3 Business Blueprint: Understanding the Business Process Reference Model
242 Citations1997Thomas A. Curran, Gerhard Keller +1 more
This chapter discusses Business Engineering and Enterprise Optimization in R/3, which involves Modeling and Configuring the Enterprise, and the Architecture of the R/ 3 System, which consists of the Three-Tier Client/Server R/2 Architecture and the Distributed Environment.
Management ScienceOrganizational Information Systems: Determinants of Their Performance and Behavior
225 Citations1982George W. Huber
The paper focuses in particular on the determinants of the performance and behavior of systems such as those mentioned above, and discusses in some detail the impact of these determinants on four processes that are of key importance in the operation of information systems.
Decision SciencesInformation‐Processing Alternatives for Coping with Manufacturing Environment Complexity
205 Citations1999Barbara B. Flynn, Edward J. Flynn
Information & ManagementEnhancing functionality in an enterprise software package
155 Citations2000Judy E. Scott, Lisa Kaindl
A theoretical model is derived that relates the two processes — selection of participants, and interorganizational collaboration — to share knowledge of a subsysytem’s best practices and suggests that ‘swift trust’ from the occupational community, conflict resolution, reciprocity, and informal networks impact functionality enhancement.
Academy of Management ReviewAn Approach for Assessing and Managing Inter-Unit Interdependence
139 Citations1979Joseph E. McCann, Diane L. Ferry
A conceptual framework for evaluating interdependence in inter-organizational and intra-organ organizational relations is discussed, which includes a referent system common to both relational contexts; six dimensions that define interdependency; and five variables that influence the perception of interDependence.
International Journal of Operations & Production ManagementLinking Systems to Strategy
135 Citations1992William L. Berry, Terry Hill
A framework to determine manufacturing planning and control system requirements that reflect differences in manufacturing strategy and process technology in a business is presented.
Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l AdministrationThe Relationship Among Organization Structure, Information Technology and Information Processing in Small Canadian Firms
100 Citations1998Mohamed El Louadi
Results suggest that increasing deployment of IT improves the provision of internal information more rapidly when horizontal differentiation is low and that the effective small business must have a structural design that facilitates a rapid and an accurate assessment of its environment and an IT capability that allows for this information to be acted upon promptly.
International Journal of Production ResearchSoftware-driven changes to business processes: An empirical study of impacts of Enterprise Resource Planning (ERP) systems at the local level
83 Citations2002Thomas F. Gattiker, Dale L. Goodhue
The results call into question prescriptions from the literature about the superiority of so-called best practices as well as the blanket recommendations about the modification of organizational business processes to fit the capabilities of an ERP system.
Information & ManagementUsing interdependence as a predictor of data standards. Theoretical and measurement issues
45 Citations1995Michael D. Wybo, Dale L. Goodhue
More precise conceptualizations of interdependence and better models of the tradeoffs between standardization and alternative means of dealing with inconsistent data semantics are required to better understand how investments in standardized data impact organizational outcomes.