Resource View Theory Analysis of SAP as a Source of Competitive Advantage for Firms.
Rex Eugene Pereira:
Resource View Theory Analysis of SAP as a Source of Competitive Advantage for Firms.
DATA BASE 30(1): 38-46(1999)@article{DBLP:journals/db/Pereira99,
author = {Rex Eugene Pereira},
title = {Resource View Theory Analysis of SAP as a Source of Competitive
Advantage for Firms},
journal = {DATA BASE},
volume = {30},
number = {1},
year = {1999},
pages = {38-46},
ee = {db/journals/db/Pereira99.html},
bibsource = {DBLP, http://dblp.uni-trier.de}
}
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 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 suggest that the effective implementation of the SAP systems 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 encourage 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 systems to fit the reengineered business processes of the organization.
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