Using resource-based view theory to assess the value of ERP commercial-packages in SMEs

• Theoretically grounded on RBV, this study assesses ERP value amongst European SMEs.
• Large scale survey from 883 SMEs from Denmark, Portugal, Spain and Sweden.
• Differences and similarities in ERP value across four commercial-packages are examined.
• Variations in ERP value across Microsoft, Oracle, SAP and SAGE are found in regards to system use, collaboration and analytics capabilities.

This study explores the enterprise resource planning (ERP) variations in value on small and medium enterprises (SMEs) across four commercial-packages (Microsoft NAV, SAP All-in-one, ORACLE JDE, and SAGE X3). Grounded on the resource-based view (RBV) theory of the firm, we assess a research model linking three determinants; ERP use, collaboration, and analytics to explain the ERP value in three effects (individual productivity, management control, and customer satisfaction). Using a survey data set of 883 firms across European SMEs we test the theoretical model through structural equation modelling. This study provides empirical evidence on how European SMEs find value from the top four commercial-packaged ERPs. Whereas for Dynamics and ORACLE the most important factor is analytics system capability, for SAP and SAGE it is greater collaboration system capability. Furthermore, for SAP and ORACLE greater ERP use is perceived as an important factor, but not for Dynamics and SAGE. In addition, the study finds that both collaboration and analytics capabilities are the greatest differentiators to ERP value, which is consistent with the RBV. The finding provide guidance to business implementation strategies and to software development. The limitations and future work of the study are noted.