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Evaluating determinants for ERP use and value in Scandinavia: exploring differences between danish and swedish SMEs

Johansson, Björn LU ; Ruivo, Pedro; Oliveria, Tiago and Neto, Miguel (2012) 6th European Conference on Information Management and Evaluation, 2012 In [Host publication title missing] p.135-142
Abstract
In the paper we present a research model for evaluating determinants of ERP value in small and medium-size enterprises (SMEs). The model is grounded in the diffusion of innovation (DOI) model and resource-based view of the firm (RBV) theory. The research model links six DOI determinants to explain ‘ERP use’ linked with two additional determinants to explain ‘ERP value’, on which nine hypotheses are postulated. The hypotheses were tested through structural equation modelling on a dataset from a web survey of 325 SMEs in Denmark (107) and Sweden (218). Through an empirical work we validate the theoretical arguments and provide insight into how SMEs use and value ERP, especially how perceived ERP use and perceived ERP value in Scandinavian... (More)
In the paper we present a research model for evaluating determinants of ERP value in small and medium-size enterprises (SMEs). The model is grounded in the diffusion of innovation (DOI) model and resource-based view of the firm (RBV) theory. The research model links six DOI determinants to explain ‘ERP use’ linked with two additional determinants to explain ‘ERP value’, on which nine hypotheses are postulated. The hypotheses were tested through structural equation modelling on a dataset from a web survey of 325 SMEs in Denmark (107) and Sweden (218). Through an empirical work we validate the theoretical arguments and provide insight into how SMEs use and value ERP, especially how perceived ERP use and perceived ERP value in Scandinavian SMEs can be explained. To our knowledge this is the first empirical research study on Scandinavian SMEs, thus adding a cross-country dimension to the innovation diffusion literature. Unlike the typical focus on ERP adoption in large firms found in the literature, this study focuses on post-adoption of ERP in SMEs. The main finding is that Danish and Swedish SMEs show different results despite the fact that they seem to be so similar. Our study reveals that while transactional efficiency, best-practices, and competitive pressure are important determinants of ‘ERP use’ in both Swedish and Danish SMEs, complexity is significant only among Danish firms. Compatibility has contrary effects, i.e., it is an inhibitor for Danish SMEs and a facilitator for Swedish SMEs to explain ERP use. Furthermore, while for Danish SMEs ‘ERP value’ is explained mainly by collaboration, for Swedish SMEs ‘ERP value’ is explained mainly by analytics. The facts that the research presents results focusing on SMEs makes it especially valuable since this is an under researched area, and that the research has 325 respondents also makes it important in exploring the differences and similarities between countries, adding an international dimension. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
ERP, SMEs, diffusion of innovation, resource-based view, use, value, post-adoption.
in
[Host publication title missing]
editor
Nagle, Tadhg and
pages
135 - 142
publisher
Academics Publishing International Limited
conference name
6th European Conference on Information Management and Evaluation, 2012
external identifiers
  • wos:000321564000017
  • scopus:84893149121
ISSN
2048-979X
2048-8912
ISBN
978-1-908272-66-9
978-1-908272-65-2
language
English
LU publication?
yes
id
2a3ad9b2-6df5-4619-bd10-b276a99e2608 (old id 3124667)
date added to LUP
2012-10-02 10:20:02
date last changed
2017-03-12 03:13:13
@inproceedings{2a3ad9b2-6df5-4619-bd10-b276a99e2608,
  abstract     = {In the paper we present a research model for evaluating determinants of ERP value in small and medium-size enterprises (SMEs). The model is grounded in the diffusion of innovation (DOI) model and resource-based view of the firm (RBV) theory. The research model links six DOI determinants to explain ‘ERP use’ linked with two additional determinants to explain ‘ERP value’, on which nine hypotheses are postulated. The hypotheses were tested through structural equation modelling on a dataset from a web survey of 325 SMEs in Denmark (107) and Sweden (218). Through an empirical work we validate the theoretical arguments and provide insight into how SMEs use and value ERP, especially how perceived ERP use and perceived ERP value in Scandinavian SMEs can be explained. To our knowledge this is the first empirical research study on Scandinavian SMEs, thus adding a cross-country dimension to the innovation diffusion literature. Unlike the typical focus on ERP adoption in large firms found in the literature, this study focuses on post-adoption of ERP in SMEs. The main finding is that Danish and Swedish SMEs show different results despite the fact that they seem to be so similar. Our study reveals that while transactional efficiency, best-practices, and competitive pressure are important determinants of ‘ERP use’ in both Swedish and Danish SMEs, complexity is significant only among Danish firms. Compatibility has contrary effects, i.e., it is an inhibitor for Danish SMEs and a facilitator for Swedish SMEs to explain ERP use. Furthermore, while for Danish SMEs ‘ERP value’ is explained mainly by collaboration, for Swedish SMEs ‘ERP value’ is explained mainly by analytics. The facts that the research presents results focusing on SMEs makes it especially valuable since this is an under researched area, and that the research has 325 respondents also makes it important in exploring the differences and similarities between countries, adding an international dimension.},
  author       = {Johansson, Björn and Ruivo, Pedro and Oliveria, Tiago and Neto, Miguel},
  booktitle    = {[Host publication title missing]},
  editor       = {Nagle, Tadhg},
  isbn         = {978-1-908272-66-9},
  issn         = {2048-979X},
  keyword      = {ERP,SMEs,diffusion of innovation,resource-based view,use,value,post-adoption.},
  language     = {eng},
  pages        = {135--142},
  publisher    = {Academics Publishing International Limited},
  title        = {Evaluating determinants for ERP use and value in Scandinavia: exploring differences between danish and swedish SMEs},
  year         = {2012},
}