ERP and Four Dimensions of Absorptive Capacity: Lessons from a Developing Country

Enterprise resource planning systems can grant crucial strategic, operational and information-based benefits to adopting firms when implemented successfully. However, a failed implementation can often result in financial losses rather than profits. Until now, the research on the failures and successes were focused on implementations in large manufacturing and service organizations firms located in western countries, particularly in USA. Nevertheless, IT has gained intense diffusion to developing countries through declining hardware costs and increasing benefits that merits attention as much as developed countries. The aim of this study is to examine the implications of knowledge transfer in a developing country, Turkey, as a paradigm in the knowledge society with a focus on the implementation activities that foster successful installations. We suggest that absorptive capacity is an important characteristic of a firm that explains the success level of such a knowledge transfer.