An empirical study of operational performance convergence following enterprise-IT implementation

This paper presents an empirical investigation into the influence of enterprise-level software package implementation on operational performance. It seeks to determine whether, as some suggest, the implementation of these technologies leads to convergence in operational performance. The potential for performance convergence is important because if it occurs, then the use of packaged software applications may act as a leveler of competitive performance, rather than as a tool to promote competitive differentiation. This paper investigates operational performance change and convergence within three geographically defined operating regions of a single firm. Operational performance is measured using order lead time the elapsed time between when an order is received and when it is shipped to the customer. The firm implemented Enterprise Resource Planning (ERP) across its global operations, simultaneously in all regions, using single installation of the applications. Findings suggest that convergence may be an initial characteristic of initial operating performance following ERP deployment. However differences in rates of performance change following deployment led to divergence in operating performance. This suggests that convergence is not a long-run characteristic of post-ERP performance.