ERP systems as an enabler of sustained business process innovation: A knowledge-based view

This research examines the relationship between ERP systems and innovation from a knowledge-based perspective. Building upon the multi-dimensional conceptualization of absorptive capacity by Zahra and George [Zahra, S.A., George, G., 2002. Absorptive capacity: a review, reconceptualization, and extension. Academy of Management Journal 27 (2), 185–203], a theoretical framework is developed to specify the relationships between ERP-related knowledge impacts and potential/realized absorptive capacity for business process innovation. The implication of the knowledge-based analysis in this paper is that ERP systems present dialectical contradictions, both enabling and constraining business process innovation. The model highlights areas where active management has potential to enhance the capabilities of a firm for sustained innovation of its business processes. Future research directions are also outlined.