The relationship between ERP capabilities, use, and value

This study assesses the effect of some extended Enterprise Resource Planning (ERP) capabilities (Collaboration, Analytics, Web-portals, Add-ons) and ERP use on ERP value. The research conducted, followed a mixed-methods approach using an exploratory study (Delphi) and the resource-based view of the firm to understand the ERP capabilities and develop three competing models surrounding these capabilities, ERP use, and ERP value, and then a confirmatory study using a large-scale survey of firms in Germany, Portugal, and the United Kingdom, to test these models. Results suggest that the moderation model best explains the relationships, while the additive model highlights the direct effects of both ERP capabilities and ERP use on ERP value in an interesting way. Results highlight that the role of ERP use is more critical when moderating ERP capabilities and ERP value, as well as when additive to ERP capabilities, than when mediating between ERP capabilities and ERP value. The practical value of the study lies in the fact that this investigation provides new knowledge on how some extended ERP capabilities may positively influence value from investment, and together with ERP use, provide business value.