This paper aims to examine the conditions and mechanisms by which ERP systems help improve business performances. Our empirical analysis on Korean firms that invested in ERP systems during 1998-2000 identifies how organizational integrating modes need...
This paper aims to examine the conditions and mechanisms by which ERP systems help improve business performances. Our empirical analysis on Korean firms that invested in ERP systems during 1998-2000 identifies how organizational integrating modes need to be aligned with ERP systems for positive results from ERP investment. We find that the degree of the alignment is determined by the clarity of objective when a firm decides to invest in an ERP system. We further find that the positive results from the proper alignment between ERP systems and organizational integrating modes relate only to organizational efficiency which does not reach at organizational profitability.