The International Journal of

One of the most important issues being addressed in organizations is the integration of systems to ensure the free flow of information from one department to another. The implementation of an integrated system throughout an organization has the potential of affecting the bottom line of the organization. While technology issues will present challenges, these will pale in comparison with the demands of shifting basic business processes and the corporate organization. Enterprise Resource Planning (ERP) systems offer a technology standard that value-chain partners can use as a platform for communication and interaction, something that was missing when enterprise software was all homegrown. This study examines organizations’ innovation decision to build or buy an information system by analyzing the various components of the decision process.