The impact of enterprise systems on process flexibility and organisational flexibility

Abstract

In light of the current dynamic business environment, companies nowadays need to respond rapidly to changes. Companies often invest heavily in enterprise systems in the hope that these can improve their flexibility in coping with such changes. However, previous studies have shown that the impact of enterprise systems on flexibility can be either positive or negative. To resolve this inconsistency in the existing research, this paper suggests that a company's flexibility should be distinguished between process level and organisational level. Specifically, this paper proposes that enterprise systems will affect process flexibility negatively but affect organisational flexibility positively. The analysis results show that enterprise systems have different effects on process and organisational flexibility. Furthermore, industry clockspeed sets a boundary for the effect on process flexibility but not for that on organisational flexibility. Research and practical implications of this study are discussed.

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