Paper Type
Completed Research Paper
Abstract
The market for the corporate acquisition of Enterprise Resource Planning (ERP) systems was estimated at $45.5 billion in 2011. Failure of these transactions is a continuing issue for both business and researchers. As the system acquisitions and transactions that govern them grow increasingly complex, a better understanding of the transactions and how to govern them is imperative. This study begins the examination of such transactions through the lens of Incentive-System Theory, an extension of Transaction Cost Economics Theory. A case study was conducted at a large (several hundred outlets) retailer/distributor in the US currently engaged in the acquisition of an ERP through a major ERP vendor. The initial findings suggest Incentive-System Theory is a viable lens and one that may suggest improvements in the way such transactions are structured. Limitations and paths for future research to extend the theory and its application are discussed.
Recommended Citation
Tribble, Larry; Hassler, Ed; and Hale, Joanne, "Bundling and Unbundling Tasks in an ERP Acquisition Transaction: An Analysis of Asset Acquisition Incentives" (2013). AMCIS 2013 Proceedings. 1.
https://aisel.aisnet.org/amcis2013/EnterpriseSystems/GeneralPresentations/1
Bundling and Unbundling Tasks in an ERP Acquisition Transaction: An Analysis of Asset Acquisition Incentives
The market for the corporate acquisition of Enterprise Resource Planning (ERP) systems was estimated at $45.5 billion in 2011. Failure of these transactions is a continuing issue for both business and researchers. As the system acquisitions and transactions that govern them grow increasingly complex, a better understanding of the transactions and how to govern them is imperative. This study begins the examination of such transactions through the lens of Incentive-System Theory, an extension of Transaction Cost Economics Theory. A case study was conducted at a large (several hundred outlets) retailer/distributor in the US currently engaged in the acquisition of an ERP through a major ERP vendor. The initial findings suggest Incentive-System Theory is a viable lens and one that may suggest improvements in the way such transactions are structured. Limitations and paths for future research to extend the theory and its application are discussed.