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The Effect of the Combination of Business Characteristic with ERP Implementation Strategies on Firm Performance

The Effect of the Combination of Business Characteristic with ERP Implementation Strategies on Firm Performance
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Author(s): Yong Jin Kim (State University of New York at Binghamton, USA), Jinyoul Lee (State University of New York at Binghamton, USA) and Pairin Katerattanakul (Western Michigan University, USA)
Copyright: 2007
Pages: 3
Source title: Managing Worldwide Operations and Communications with Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-929-8.ch333
ISBN13: 9781599049298
EISBN13: 9781466665378

Abstract

The implementation of ERP requires a substantial amount of time and financial resources. Despite much attention to ERP systems, it is not yet clear why some companies successfully implemented the system but others failed. This study focuses on the effect of the combination of business characteristics with ERP implementation strategies on firm performance. We assume in this study that business characteristics of a company and the implementation strategies may affect the benefits resulting from the implementation of the systems (Umble, et al. 2003). We employ a cluster analysis to identify different group behaviors among companies and examine the differences in performance between the groups of companies. The current study contributes to literature in two ways. First, this research identifies the basic strategies for ERP implementation and their relationship with business characteristic that in turn affects firm performance. Second, this study empirically tests the role of the combination of the business characteristic with ERP implementation strategies in explaining firm performance

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