Keywords: China, enterprise resource planning, ERP implementation, process innovation, dynamic capabilities
Closing the gap: How should Chinese companies build the capabilities to implement ERP-driven process innovation?
In this paper, we explore the question: How should Chinese companies cope with their highly dynamic situation and build the capabilities to implement enterprise system (e.g. Enterprise Resource Planning (ERP)) driven process innovation? We adopt the dynamic capabilities approach to study three ERP-driven process innovation programmes with various implementation outcomes: ranging from a highly successful programme to an abandoned programme. Our research results show that the dynamic capabilities approach can provide a holistic perspective to understand enterprise system driven process innovation at Chinese companies, which are facing a dynamic external environment. Chinese companies often lack the experience of enterprise system ERP-driven process innovation, however they could solve these challenges if they focus more on effectively building their dynamic capabilities.