Individuals' Absorptive Capacity in Enterprise System Assimilation

Abstract

The capability of an individual to absorb knowledge about enterprise resource planning (ERP) is a critical element in the development of an organisation’s absorptive capacity (ACAP) during assimilation phase of ERP. Prior research have tended to overlook the roles that individuals play in identify external and internal knowledge, assimilate and exploit ERP knowledge. By defining ACAP at the individual level, we seek to enrich our understanding of how individual learn ERP knowledge and how such efforts facilitate the ERP assimilation within organisations. We develop a theoretical model to investigate the assimilation of enterprise systems in the post-implementation stage. Specifically, this model explains how communication climate and top management participation moderates the impact of Individuals’ ACAP on the assimilation of ERP systems.