In search of the equilibrium for ERP project success : dynamic management of intangible resources

Enterprise resource planning (ERP) system is well-known as one of the central technological infrastructure that facilitates efficient business operations in a dynamic business landscape. Adoption of the systems however is mired with numerous problems; a well cited reality in multitude industrial and academic reports. This paper applies the dynamic capabilities view to examine the effects of intangible resources (i.e. Governance, Knowledge and Relationship) toward successful implementation of ERP systems in Malaysian service firms. Results from the Partial Least Square (PLS) estimation shows that Relationship resource has a significant individual and direct effect toward ERP implementation success. Further analysis shows that Governance resource is the mediator that enhances the effects of Knowledge and Relationship resources toward successful implementation of ERP systems. The findings suggests that successful ERP implementation could be prominent if the implementing firm is able to manage their technology project by integrating and reconfiguring their intangible resources in a strategic context. The strategic determination of resources with the capability to enhance the competence of other resources can become the strategic equilibrium for ERP project implementation success.