Enterprise resource planning (ERP) implementation: Any competitive advantage for the company? (case study: ERP implementation in Indonesia)

Gede Rasben Dantes, Zainal Arifin Hasibuan

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

Competitive advantage is the main reason why the company adopts new technology. Not all ERP implementation, however, can give competitive advantage to a company. While it might sound ridiculous, a company's competitive benefit is affected by the company's business strategy other than by the technology it implements and how much the strategy and the technology are aligned. Besides, many factors influence ERP implementation success in order to give a competitive advantage. On this study, we focused on two factors that influence it, namely: organization maturity level and ERP implementation approach. We applied the path analysis to identify significant correlation among the organization maturity level, ERP implementation approach, ERP implementation success and competitive advantage. Seven companies were chosen as the object of the study, covering four different industrial sectors, namely: Telecommunication, manufacturing, automotive and oil & gas companies. Survey result showed that the ERP implementation success does not always give the competitive advantage for the organization. It shows on path coefficient between ERP implementation success (Y) and competitive advantage (Y1) is 0.048. It is also found that organization maturity level (X1) is more determine the competitive advantage rather than ERP implementation approach (X2). It is discovered that path coefficient between X1 and Y1 is 0.224. On the other hand, the path coefficient between X2 and Y1 is 0.127. The finding is also expected to improve knowledge in Enterprise System, Management Information System and on Creating Competitive Advantage through ERP Implementation.

Original languageEnglish
Title of host publicationProceedings of the IADIS International Conference Information Systems 2011, IS 2011
EditorsPedro Isaias, Philip Powell, Luis Rodrigues, Miguel Baptista Nunes
PublisherIADIS
Pages79-86
Number of pages8
ISBN (Electronic)9789728939472
Publication statusPublished - 1 Jan 2011
EventIADIS International Conference on Information Systems 2011, IS 2011 - Avila, Spain
Duration: 11 Mar 201113 Mar 2011

Publication series

NameProceedings of the IADIS International Conference Information Systems 2011, IS 2011

Conference

ConferenceIADIS International Conference on Information Systems 2011, IS 2011
CountrySpain
CityAvila
Period11/03/1113/03/11

Keywords

  • Competitive advantage
  • Erp implementation approach
  • Erp implementation success
  • Organization maturity level

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