Enterprise resource planning and business model innovation: process, evolution and outcome

Abstract

Purpose The purpose of this paper is to focus on the implementation process of enterprise resource planning (ERP), the evolution of business model innovation (BMI) and the organizational outcome. This research analyses how ERP and BMI are related and, in turn, what is the final the impact on organizational performance.

Design/methodology/approach The sample consisted on 104 organizations from different industries, all of which used an ERP software. A structural equation model was used to test the six hypotheses.

Findings The results indicate that the BMI constructs considered (i.e. value-generation and organizational complexity) mediate the impact of the ERP constructs (organizational adaptation and organizational resistance), in organizational performance. Successful ERP implementation is not an end itself for this companies, but merely a path and a process for improving the business model with the aim improving performance in the marketplace.

Research limitations/implications This study offers a new outlook on how a company should leverage the ERP adaptation, and any resistance in the organization to innovating in the business model. This study is rooted in the evolutionary perspective of BMI, but it also integrates into an overall model other points of view such as the rational positioning view and cognitive view.

Practical implications Organizations must understand the ERP flows in depth, each ERP flow is the work result of a multitude of companies over several years. All departments, and in particular the research and development department must participate actively in the ERP implementation. Organised complexity means opportunities for success in the market. Organizations must train their departments in ERP and not just teach them how the ERP works. ERP implementation needs consider improvements to the business model and ultimately the performance, but not separately.

Originality/value BMI has received contributions from several domains such as entrepreneurship, management organization and strategic management among others. Nonetheless, the role of ERP in BMI is far from being understood and the few contributions focus only on technology per se. To the best of our knowledge this is the first study that has explored the connections of ERP and BMI and in turn the final outcome in organizational performance.