Evaluating determinants for ERP use and value in scandinavia: Exploring differences between danish and Swedish SMEs

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

3 Citations (Scopus)

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 resourcebased 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.

Original languageEnglish
Title of host publication6th European Conference on Information Management and Evaluation, ECIME 2012
Pages135-142
Number of pages8
Publication statusPublished - 1 Dec 2012
Event6th European Conference on Information Management and Evaluation, ECIME 2012 - Cork, Ireland
Duration: 13 Sep 201214 Sep 2012

Publication series

Name6th European Conference on Information Management and Evaluation, ECIME 2012

Conference

Conference6th European Conference on Information Management and Evaluation, ECIME 2012
CountryIreland
CityCork
Period13/09/1214/09/12

Keywords

  • Diffusion of innovation
  • ERP
  • Post-adoption
  • Resource-based view
  • SMEs
  • Use
  • Value

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