Understanding the impact of technological flexibility at different decision levels to reap enterprise resource planning benefits

Abstract

PurposeThis paper aims to provide a framework regarding Information Technology (IT) Flexibility in Supply Chain and its relationship with the benefits we could see from Enterprise Resource Planning (ERP) systems. Furthermore, this research explores the moderating effect of Process Integration Capability in the relationship between IT flexibility and ERP benefits.Design/methodology/approachThis research model will help organizations get additional benefits from their ERP systems that incurred huge costs, time and multiple resources at their implementation. The technique used for analyzing data is structural equation modeling (SEM), and data is collected from 107 respondents through a questionnaire from Business and IT Professionals.FindingsThe study findings reveal a positive and significant relationship between IT flexibility and ERP systems benefits; moreover, results also confirmed that the organization's process integration capability significantly increased the benefits of ERP systems. The findings also highlight empirical evidence about the significance of the top-to-bottom approach investing in IT flexibility and the bottom-to-top approach during the implementation of IT systems for successful implementations.Practical implicationsThis study has various implications for practitioners that help them successfully implement and long-term viability of their IT infrastructure.Originality/valueThis study's findings will help IT managers and strategists make effective decisions for creating IT flexibility in alignment with the strategic goals to realize the desired results expected from ERP systems and implementations of new IT systems.