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ERP selection through business relationships – adaptations or connections

Author

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  • Peter Ekman
  • Peter Thilenius

Abstract

This article analyses how a generic form of information technology (IT), enterprise resource planning (ERP) systems, can be selected by companies to enhance their business. ERP systems are a means of becoming more efficient through predefined standard functions called 'best practices'. Following the theory that markets are made up of business relationships in a network context, managerial advice would be to assess the vendor's existing business relationships. A company can harvest the inherent functions that an ERP system has from the vendor's prior interaction with other customers. This paper discusses how a company benefits from engaging in a new business relationship with an ERP vendor to become more competitive. However, this relationship is double-edged. A lesson is that the functions developed by the ERP vendor and the customer only offer a temporal competitive advantage, given that it can be used later in the ERP vendor's other connected business relationships.

Suggested Citation

  • Peter Ekman & Peter Thilenius, 2011. "ERP selection through business relationships – adaptations or connections," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 3(1), pages 63-83.
    • Handle: RePEc:ids:ijeven:v:3:y:2011:i:1:p:63-83
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