The ERP paradox: understanding the impact of enterprise resource planning systems on firm performance

Summary form only given, as follows. This paper presents a theoretical framework that explains why, through which mechanisms and under what environmental conditions the adoption of an enterprise resource planning (ERP) system may increase or reduce the profitability of a business organization. The framework proposed is built on the key intuition that the business process reengineering required by the ERP adoption interferes with the knowledge evolution cycle through which a firm generates and maintains effective dynamic capabilities