Seeking strategic advantage in the post-net era: viewing ERP systems from the resource-based perspective

• Published in: The journal of strategic information systems 2004-07, Vol.13 (2), p.129-150
• Main Authors: Beard, Jon W, Sumner, Mary
• Format: Article
• Language: English
• Subjects: Business management; Common systems; Competitive advantage; Computer applications; Enterprise Resource Planning; Resource-based model; VRIO model
• ISSN: 0963-8687; 1873-1198
• DOI: 10.1016/j.jsis.2004.02.003

The purpose of this research is to explore whether enterprise resource planning (ERP) systems can provide an organization with a sustained competitive advantage. Using the VRIO framework of the resource-based model of competitive advantage, four questions are posed to consider this issue. Is the ERP system valuable? Is the ERP system a resource that is heterogeneously distributed across competing firms? Is the ERP system imperfectly mobile? And, is the firm organized to exploit the full potential of its ERP system? An examination of the existing research suggests that ERP systems may not provide a competitive advantage based upon the premises of system value, distribution, and imitability. This is largely due to the ‘common systems’ approach used for the implementation of most ERP systems. Instead, the source of competitive advantage may lie in the careful planning and successful management of ERP projects, refinement of the reengineering of the organization, and the post-implementation alignment of the ERP system with the organization's strategic direction. Suggestions for future research are offered.