Information Technology Reference
In-Depth Information
Chapter 18
Measuring Utilization of ERP
Systems Usage in SMEs
Hedman Jonas
Copenhagen Business School, Denmark
Johansson Björn
Lund University, Sweden
AbstrAct
Since deployment of Enterprise Systems (ES) such as Enterprise Resource Planning systems (ERPs)
within enterprises, both Large Enterprises (LEs) as well as Small and Medium-sized Enterprises (SMEs)
have increased and continue to increase, making it increasingly desirable to measure the degree of
utilization of ERP systems in enterprises. One reason for this interest is that no benefits are realized if
the systems are not used; since ERPs are massive investments, they need to show benefits, or at least
be able to measure the benefits. However, to be able to do so, there is a need to explain ERP systems
utilization and the factors that influence ERP utilization. This chapter provides an explanation of factors
influencing ERP systems utilization by testing a research model building on four dimensions: volume,
breadth, diversity, and depth. The contributions of the research are: First, it provides support for the
notion of diffusion found in the theory of network externalities where a critical mass is necessary to
achieve benefits. This can be used to better understand failures in ERP projects. Second, the use of vol-
ume, breadth and depth provide insights for use as a construct and the need to treat it more rigorously.
Third, the study contributes to our understanding of the many aspects of use of IT, such as ERPs, and
potentially contributes to value and firm performance from ERP utilization.
introduction
during the last decade (Davenport, 1998; Hitt et
al., 2002; Upton & McAfee, 2000). The busi-
ness interest in
ERP Systems
can be explained
from descriptions of benefits associated with
implementation and utilization of ERPs (Robey
et al., 2002), of which there are several studies on
inspiring success (Davenport, 2000). There are,
Enterprise Resource Planning (ERPs) systems
have constituted one of the most important de-
velopments in corporate information systems (IS)
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