The moderating effect of industry environments on the relationship between IT asset portfolios, efficiency and innovation in the ERP context

Abstract

Technology investments in the form of ERP systems tend to align the company's information technology (IT) asset portfolio with two main performance results are efficiency and innovation. This study examines the influence of industrial environment on the relationship between IT asset portfolio with efficiency and innovation. The research model is tested using data from 104 observations gathered from 26 companies for 4 years (2009-2012), and data analysis is conducted using a moderated regression analysis. The results show that increase in value of IT assets portfolio will improve operational efficiency, and innovation companies. Furthermore, we find that the industry environment is not moderate the relationship between the of IT asset's portfolio with operational efficiency. On the other hand, industrial environments statistically significant affect the relationship between the IT asset portfolios with innovations. The results imply that the company has implemented an ERP system, investment in IT is not oriented towards the exploitation of IT, but tends to increase the exploration process to the form of innovation.