An analytical model to measure IS-enabled organizational effectiveness

Tang, Chun Meng, and Marthandan, Govindan (2011) An analytical model to measure IS-enabled organizational effectiveness. International Journal of Enterprise Information Systems, 7 (2). pp. 50-65.

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When business managers are considering whether to invest in an enterprise resource planning (ERP) system, they ask the question: "What are the returns on investment?" When the ERP system is implemented and in operation, business managers ask another question: "How successful is the system?" To answer these questions, clues can be found by examining organizational effectiveness improvements as a result of ERP system implementation. This paper suggests that being able to identify the dimensions of organizational effectiveness is enabled by ERP systems. Together with positive organizational effectiveness improvements, the business value of ERP systems can be demonstrated. To provide the evidence needed to support the notion, a confirmatory factor analysis (CFA) was conducted. Analyses reveal that the construct of IS-enabled organizational effectiveness can be modeled, at a higher-order abstraction level, as a third-order construct manifested by three second-order constructs and ten first-order constructs.

Item ID: 29842
Item Type: Article (Research - C1)
ISSN: 1548-1123
Keywords: balanced scorecard (BSC), confirmatory factor analysis (CFA), enterprise resource planning (ERP), ERP success, information systems (IS) business value, IS investment, organizational effectiveness, return on investment
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This paper has also been published as a book chapter:

Tang, Chun Meng, and Marthandan, Govindan (2013) An analytical model to measure IS-enabled organizational effectiveness. In: Tavana, Madjid, (ed.) Competition, Strategy, and Modern Enterprise Information Systems. Business Science Reference, Hershy, PA, USA, pp. 230-245. ISBN 978-1-4666-2464-1, DOI link:

Date Deposited: 25 Jun 2014 23:23
FoR Codes: 08 INFORMATION AND COMPUTING SCIENCES > 0806 Information Systems > 080609 Information Systems Management @ 100%
SEO Codes: 89 INFORMATION AND COMMUNICATION SERVICES > 8999 Other Information and Communication Services > 899999 Information and Communication Services not elsewhere classified @ 100%
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