Abstract
SYNOPSIS Utilizing a common enterprise resource planning (ERP) vendor could improve supplier and customer performance by increasing supply chain information technology (IT) alignment, agility, and efficiency. However, supply chains could be hesitant to utilize a common ERP vendor for fear of intellectual capital loss, increased costs, and IT incapability with existing IT architecture. Relational view theory argues that information sharing and process integration advantages are achieved when supply chain partners share assets, knowledge, and capabilities through relation-specific investments, complementary resources, and knowledge sharing processes. We find evidence that common ERP vendor (CERPV) use is associated with greater supplier and customer efficiency, performance, and partnership strength. Our study directly examines the impact of CERPV use within a supply chain, adding to the limited accounting information systems’ evidence on the role of interorganizational ERP system investments on efficiency.
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