Resource view theory analysis of SAP as a source of competitive advantage for firms

Authors:
Rex Eugene Pereira
Affiliations:
The University of Notre Dame, Indiana
Venue:
ACM SIGMIS Database
Year:
1999

Citing 3
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Abstract

This paper uses resource view theory to determine the means by which SAP technology could provide a sustainable competitive advantage to firms which have successfully implemented the SAP system. Resource view theory suggests that resources which are durable, not easily replicable, and imperfectly mobile can be effectively leveraged by the firm in order to achieve a sustainable competitive advantage over its competitors.The analysis which is presented in this paper suggests that the effective implementation of the SAP system by a firm requires not only an acquisition of a high level of technical expertise, but a change in organizational culture from one which rewards individual brilliance to one which encourages project teams. This will create an environment in which the success of any individual in his job is critically dependent on the skills possessed by the other team members. This will render the human component of the SAP resource imperfectly mobile and increase the capability of the firm to leverage this resource in order to achieve a sustainable competitive advantage.A second prescription which emerges from the analysis is that it is preferable to modify the business processes of the organization to fit the capabilities provided by the SAP system, rather than modify the SAP system to fit the reengineered business processes of the organization.