Manufacturing firms are increasingly using advanced enterprise-level information systems to coordinate and synchronize externally oriented functions such as marketing and supply chain and internally oriented activities such as manufacturing. In this paper, we present a model of manufacturing performance that simultaneously considers the effects of a firm's integrated IS capability in conjunction with interfunctional and interorganizational coordination mechanisms. Consistent with the complementarity perspective, we view this specific form of IS capability as enhancing manufacturing's coordination with marketing and supply chain functions to drive manufacturing performance. Additionally, the theoretical model presented here introduces manufacturing-IS coordination, a form of coordination not considered in past research, as a key antecedent to integrated IS capability. The research thus provides a comprehensive framework for examining manufacturing performance in contexts that have been transformed by the use of advanced information systems. The theoretical model is tested using primary data collected from manufacturing firms and matched with objective manufacturing performance data from secondary sources. Results show that a firm's integrated IS capability, as well as the complementary effects of IS capability with manufacturing, marketing, and supply chain processes, are significant predictors of manufacturing performance. These findings are robust to concerns of endogeneity, unobserved heterogeneity and alternative model specification.
This paper investigates the influence of enterprise systems implementation on operational performance. The work extends the literature on enterprise systems by focusing on changes in process dynamics as a source for ongoing firm-level performance improvement. A case discussion of Tristen Corporation, a firm that implemented ERP and subsequently experienced benefits through gains to its continuous improvement efforts, is examined in light of theorized impacts of such implementations on process dynamics. Analyses of longitudinal data suggest that performance along a key metric motivating the ERP initiative (i.e., order fulfillment lead-time) showed a significant improvement immediately after system deployment. The data further suggest that the system implementation gave rise to an ongoing trend of performance improvement, in contrast to a stable performance trend prior to go-live.