From dynamic capabilities to ERP enabled business improvements: The mediating effect of the implementation project

This study explores whether an Enterprise Resource Planning (ERP) implementation project mediates the relationship between dynamic pre-adoption capabilities and ERP-enabled business improvements. The results from our field survey of large ERP adopters in Austria suggest that the effects of the two out of three selected dynamic capabilities are dependent on the properties of the underlying organizational transformation project. While external information acquisition and IT governance capabilities are fully mediated by the performance of the ERP implementation project, decision making only directly impacts business capabilities. These results further our understanding about the role of the implementation project for ERP value creation and the different natures of capability relationships. We call for more research on co-presence conditions related to dynamic capabilities and IT transformation project performance. •Dynamic capabilities are essential for ERP value generation in large organizations.•ERP value seen in improved business capabilities after ERP project implementation.•IT governance and information acquisition effects are mediated by the ERP project.•Decision making effects not seen conditional over project performance.