ERP system usage and benefit: A model of antecedents and outcomes

• ERP usage model incorporating absorption-based theory is proposed.
• ERP system usage is a key predictor of ERP system benefit.
• Managerial flexibility is a key moderator of ERP system usage.
• Knowledge integration mechanisms are an important moderator of ERP system benefit.
• Extent of ERP implementation is positively correlated with ERP system usage.

ERP system usage has been identified as a critical factor in attaining the benefit from an ERP installation. However, the specific antecedents of ERP usage and its impact on ERP benefit remains largely unknown. Drawing on absorption capacity theory, this study develops a theoretical model that examines the mediating effect of ERP system usage on ERP benefits. Similarly, the study also identifies the antecedents of ERP system usage. A model is tested using the responses of 157 ERP system end-users across the United States and the results suggest that ERP system usage is directly related ERP benefit. However, the relationship is moderated by the degree of knowledge integration mechanisms within the firm. Consistent with the proposed model, the results also reveal that technical resources, organizational fit and the extent of ERP implementation are key drivers of ERP system usage. The research findings advance our knowledge on how managers can enhance ERP usage and realize optimal ERP benefits.