Title: Conceptualising ERP systems' value as a multidimensional formative construct

Authors: Vikas Jain

Addresses: Department of Information and Technology Management, University of Tampa, 401 W Kennedy Blvd, Tampa, Florida, 33606, USA

Abstract: More than two decades of research on information technology (IT) value still leaves us with limited understanding of IT value and how to measure it in an organisation. In particular, for systems such as enterprise resource planning (ERP) systems where value can be realised across different dimensions at different points in time, the issue of measuring IT value becomes even more complicated. ERP systems have the potential to provide value across multiple dimensions from operational to managerial to strategic level. As with any other information technology, the value of ERP systems can be assessed using different metrics. The available methods of ERP value assessment such as financial performance indicators for the organisation do not provide multidimensional contribution of ERP systems. Very few studies in ERP value literature have quantitatively measured and validated ERP value across multiple dimensions. Using the balanced scorecard (BSC) approach, this study conceptualises and validates measures of ERP value across four dimensions of BSC: internal business oriented ERP value, customer-oriented ERP value, learning and growth-oriented ERP value, strategic and financial-oriented ERP value. The measurement model for ERP value indicates the robustness of measures used in the study.

Keywords: enterprise resource planning; ERP systems; ERP value; balanced scorecard; BSC; ERP benefits; IT value; information technology; internal business oriented value; customer-oriented value; learning; growth-oriented value; strategic value; financial-oriented value; value measurement.

DOI: 10.1504/IJBIS.2016.075255

International Journal of Business Information Systems, 2016 Vol.21 No.4, pp.439 - 461

Received: 28 Aug 2014
Accepted: 19 Oct 2014

Published online: 09 Mar 2016 *

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