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Enterprise systems and innovations

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  • Engelstätter, Benjamin

Abstract

This paper analyzes the relationship between the three main enterprise systems (Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM)) and firms' innovational performance. It studies whether the enterprise systems have impacts on process as well as product innovations. Using German firm-level data, the results show that ERP and SCM systems foster the firms' likelihood to generate process innovations. In addition, ERP systems also show a positive impact on process innovation intensity. These results do not only emerge for the short-run of two years or less but remain also stable in the long-run of two to four years. Concerning product innovational performance only, CRM systems increase the firms' likelihood to acquire product innovations, although the impact only emerges for the short-run and vanishes if the long-run perspective is taken into account.

Suggested Citation

  • Engelstätter, Benjamin, 2009. "Enterprise systems and innovations," ZEW Discussion Papers 09-086, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:09086
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    References listed on IDEAS

    as
    1. Terza, Joseph V., 1998. "Estimating count data models with endogenous switching: Sample selection and endogenous treatment effects," Journal of Econometrics, Elsevier, vol. 84(1), pages 129-154, May.
    2. Engelstätter, Benjamin, 2009. "Enterprise systems and labor productivity: disentangling combination effects," ZEW Discussion Papers 09-040, ZEW - Leibniz Centre for European Economic Research.
    3. Roper, Stephen & Du, Jun & Love, James H., 2008. "Modelling the innovation value chain," Research Policy, Elsevier, vol. 37(6-7), pages 961-977, July.
    4. Alfonso Miranda & Sophia Rabe-Hesketh, 2006. "Maximum likelihood estimation of endogenous switching and sample selection models for binary, ordinal, and count variables," Stata Journal, StataCorp LLC, vol. 6(3), pages 285-308, September.
    5. Thomas Hempell & Thomas Zwick, 2008. "New Technology, Work Organisation, And Innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(4), pages 331-354.
    6. Michael Fritsch, 2002. "Measuring the Quality of Regional Innovation Systems: A Knowledge Production Function Approach," International Regional Science Review, , vol. 25(1), pages 86-101, January.
    7. Gérard P. Cachon & Marshall Fisher, 2000. "Supply Chain Inventory Management and the Value of Shared Information," Management Science, INFORMS, vol. 46(8), pages 1032-1048, August.
    8. R. Winkelmann, 1998. "Count data models with selectivity," Econometric Reviews, Taylor & Francis Journals, vol. 17(4), pages 339-359.
    9. Rehfeld, Katharina-Maria & Rennings, Klaus & Ziegler, Andreas, 2007. "Integrated product policy and environmental product innovations: An empirical analysis," Ecological Economics, Elsevier, vol. 61(1), pages 91-100, February.
    10. Flaig, Gebhard & Stadler, Manfred, 1994. "Success Breeds Success. The Dynamics of the Innovation Process," Empirical Economics, Springer, vol. 19(1), pages 55-68.
    11. Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs: empirical evidence for Italy," Small Business Economics, Springer, vol. 33(1), pages 13-33, June.
    12. Judy E. Scott & Iris Vessey, 2000. "Implementing Enterprise Resource Planning Systems: The Role of Learning from Failure," Information Systems Frontiers, Springer, vol. 2(2), pages 213-232, August.
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    Cited by:

    1. Engelstätter, Benjamin & Sarbu, Miruna, 2010. "Enterprise software and service innovation: Standardization versus customization," ZEW Discussion Papers 10-100, ZEW - Leibniz Centre for European Economic Research.

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    Keywords

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    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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