What Makes ERP Systems to Deliver? Impact of Post-Implementation Capabilities on ERP Value

More than two decades of research on information technology (IT) value still leaves the issue of ITvalue in an organization a less understood concept. The issue of IT value is particularly important incase of systems such as Enterprise Resource Planning (ERP) because these systems involve significantfinancial investments. Evidence from the current literature indicates that a high number of ERPimplementations fail to deliver the anticipated benefits. While successful implementation of ERPsystems is essential before any benefit can be expected from them, success of the implementation itselfcannot ensure that ERP systems will add value to the organization subsequently. Extant literature onERP systems is overly focused on capabilities that help an organization to successfully implement anERP system and lacks studies that focus on capabilities required to derive benefits from ERP systemsin the post-implementation stage. To address this gap in the literature, in this research in progressstudy, we develop a theoretical model and related hypotheses to examine the effect of post-ERPimplementation capabilities on value delivered by ERP systems. In this paper, we also outline themethodology to validate the theoretical model using the data that would be collected in the next step.Broadly, the research suggests that value of ERP systems after successful implementation is impactedby three sets of capabilities, end users’ capability to use ERP system functionalities, managerialcapability to use information generated through ERP systems to achieve organizational objectives,and overall organizational IT capability