Resource View Theory Analysis of SAP as a Source of Competitive Advantage for Firms Rex Eugene Pereira The University of Notre Dame Abstract This paper uses resource view theory to determine the means by which SAP technology could provide a sustainable competitive advantage to firms which have successfully implemented the SAP system. Resource view theory suggests that resources which are durable, not easily repficable, and imperfectly mobile can be effectively leveraged by the firm in order to achieve a sustainable competitive advantage over its competitors. The analysis which is presented in this paper suggests that the effective implementation of the SAP system by a firm requires not only an acquisition of a high level of technical expertise, but a change in organizational culture from one which rewards individual brilliance to one which encourages project teams. This will create an environment in which the success of any individual in his job is cntically dependent on the skills possessed by the other team members. This will render the human component of the SAP resource imperfectly mobile and increase the capability of the firm to leverage this resource in order to achieve a sustainable competitive advantage. A second prescription which emerges
ACM SIGMIS Database – Association for Computing Machinery
Published: Jan 1, 1999
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