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To cite this article: Kimberly Deranek, Alexander McLeod & Edie Schmidt (2017): ERP Simulation
Effects on Knowledge and Attitudes of Experienced Users, Journal of Computer Information
Systems, DOI: 10.1080/08874417.2017.1373610
Article views: 4
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JOURNAL OF COMPUTER INFORMATION SYSTEMS
https://doi.org/10.1080/08874417.2017.1373610
ABSTRACT KEYWORDS
Best-in-class organizations recognize that knowledge management provides a competitive advantage. ERP simulation; enterprise
Opportunities to share knowledge enhance knowledge sharing attitudes. Organizations use training to training; knowledge
facilitate knowledge and acclimate novice employees to Enterprise Resource Planning (ERP) systems. management; situated
cognition theory;
Most ERP functional training leverages explicit codified knowledge. Without collaborative opportunities
socialization
between departments, allowing users to interact and exchange internalized knowledge and skills,
information remains untapped. Prior research explored the impact of ERPsim on knowledge, skills,
Downloaded by [Gothenburg University Library] at 04:36 02 October 2017
and attitudes, but failed to model construct relationships. This work assesses if a business simulation
can be used to mimic Social Cognition Theory and enhance knowledge and attitude among experienced
employees. Paired sample T-tests confirmed significant differences in means across constructs.
Additionally, PLS Path Modeling investigated and confirmed a relationship between knowledge and
skills constructs with attitude. Findings suggest ERPsim might be beneficial to diffuse knowledge and
skills among experienced users in the workplace, while positively influencing attitudes.
CONTACT Kimberly Deranek kderanek@nova.edu Decision Science, Nova Southeastern University, Carl DeSantis Building, 3301 College Ave., Fort
Lauderdale, FL 33314-7796, USA.
*Dr. Schmidt is a Professor Emeritus at Purdue University.
© 2017 International Association for Computer Information Systems
2 K. DERANEK ET AL.
manage and integrate knowledge.14 There is a body of setting using an SAP ERP system. This study is relevant in
research suggesting that enterprise system knowledge, busi- the knowledge management domain because the main-
ness process knowledge and transaction skills are needed by stream opinion is that a sustainable competitive advantage
ERP users.16,17 is realized through the effective channeling of worker
Recently, Jaeger et al.18 suggested that a “knowledge-doing” knowledge.37 As experienced employees attain and transfer
gap exists related to ERP systems knowledge. Employees tend knowledge through participation in the ERP simulation,
to lack an understanding of how their work affects other the overall value of IS resources within the organization
departments, creating a silo effect and “islands of automation” can be enriched through knowledge and skill enrichment
emerge.13,19 Problems occur when tacit knowledge is not and attitude enhancement.
shared. If employees are not provided access to the tacit
knowledge of their peers, they cannot forge a comprehensive
understanding of the system.19 Motivation
Research suggests knowledge-sharing opportunities used to Companies use enterprise systems to manage the flow of
exploit knowledge-based resources are imperative to knowl- information and data across departments. Understanding
edge management initiatives.20–23 Studies indicate that non- enterprise system business processes and how they improve
traditional methods involving the use of simulations have productivity is important to company success.38 Knowledge
been successful in fostering enterprise knowledge.24–26 Few gaps are often the result of organizational structure which
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organizations have adopted the use of simulations to foster divides work by functional role or department39, and so
the socialization process to develop a repertoire of knowledge defining a mechanism to continuously expand employee
workers by disseminating experienced employees’ tacit knowl- ERP knowledge and skills systemically can break down
edge. McLeod and Simkin27 revealed that users evolve departmental barriers, improve attitudes, and have a positive
through various stages of learning and training; therefore, impact on company success.40
extending the use of ERP simulations as a key component of
managing knowledge in the workplace is a logical trajectory.
A more complete training structure, inclusive of a collabora- Enterprise training overview
tive situational context, would develop knowledge workers Training helps propagate knowledge on both an individual
and promote a more cohesive and effective organization and organizational level. Often overlooked is that fact that
through improved awareness, decision making skills, and enterprise training not only enables individuals to acquire
communication.28 knowledge, but also to share knowledge. Effective training
Attitude, or the psychological commitment of users to allows theoretical knowledge to be applied in practice, to
IT, is key to productivity and performance through the help foster learning.41
efficient and effective use of an ERP system.29–31 The Human capital enrichment is a fundamental output of
adapted technology acceptance model suggests user beha- training.5 Organizations that gauge success by their ability
vior of IT is influenced by their attitude.32,33 Furthermore, to manage costs, might view continuous training as an
as discussed by Wang and Noe20, “previous research sug- unnecessary expense. This mindset can be detrimental
gests attitude partially mediates the relationships between since an organization cannot operate at an optimal level if
employee subjective norms and intention to share knowl- employees do not have a systemic understanding and
edge” (p. 122). Within the context of knowledge manage- develop business process expertise. Training should be
ment, attitudes toward IT directly link to knowledge viewed as investment.42
sharing. It is a cyclical process; as attitudes toward IT Zhao et al.5 describe the essential elements of enterprise
improve, knowledge sharing is more likely. Training that training as follows:
emphasizes panoptic empowerment, a combination of
empowerment and cross-functional visibility, has proven To create, share and diffuse explicit knowledge in an organization
and build an environment of continuous learning and sharing for
effective in improving employees’ attitude and employees; to create an effective training system which can pro-
performance.30 A growing body of research suggests that mote knowledge generation, diffusion, transformation and shar-
“user acceptance” is probably not fixed, but rather develops ing to form a think-tank of an enterprise; to make employees’ tacit
and strengthens over time.27,34–36 Continual enhancing knowledge visible, provide an opportunity to convert tacit knowl-
employees’ attitude can perpetuate this process. edge into explicit knowledge, and increase the content of enter-
prise knowledge to enhance the competitiveness of the enterprise;
The primary purpose of this research is to establish and and to establish the framework of a learning organization which
test a theoretical framework for managing and disseminat- inspires employees to maximize the use of individual knowledge
ing knowledge among experienced employees using an within the enterprise, and build a platform of organizational
ERP simulation. This research demonstrates how an ERP knowledge. (p. 568)
simulation can mimic workplace dynamics and be a sur-
rogate for situated cognition in the workplace. Situated
Knowledge management and team-based training
cognition theory posits that understanding is systemic
and based on interrelated activities and tasks. Knowledge management provides a way for disconnected
Participation in an ERP simulation provides an opportu- knowledge to be integrated.43 Research has shown that teach-
nity for experienced employees to participate in team ing content in innovative ways is more effective than func-
collaboration and decision making in a fun competitive tional methodologies.14,26,44 Langer45 points out that changing
JOURNAL OF COMPUTER INFORMATION SYSTEMS 3
the context in which individuals learn can infuse inventive- importance of integrating learning and work, recognizing
ness and resourcefulness in the process. Holistic training workers as learners and using innovation as a bond
methodologies move employees beyond task-based training between the two.63
and results in knowledge creation and extension through
interdepartmental collaboration which is vital for a company
to compete.39 Enterprise ERP training continuum
Team-based training consists of two or more individuals
Best in class organizations understand enterprise training is
working together in a collaborative setting to stimulate active
not deemed a one-time event, but rather follows a
learning.46 Using a team-based training methodology enables
continuum.27 Knowledge manifests at each stage of the
employees an opportunity to acquire knowledge beyond the
process and during the on-boarding process, the first
confines of their immediate department. By working collec-
stage of training typically occurs.5 During the on-boarding
tively, learning may occur from exposure to either tacit or
process, the primary objective is to foster ERP transactional
explicit knowledge of someone outside an individual’s own
knowledge. The intent is to improve skills in a particular
functional unit.47
functional area and create a worker capable of performing
Team-based training positively influences employees’
their work independently. This silo perspective results in
knowledge integration and task effectiveness. Decision mak-
niche expertise performed with the functional interest in
ing within the context of social networks, improves the quality
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mind.1
of the information exchanged.20,48–50 Research suggests simu-
The second phase of training occurs on the job. This is when
lations positively influence users across varying dimensions
employees begin to develop tacit knowledge. Over time through
including decision-making skills in a business setting16,51,52;
the repetition of tasks and activities, intuition, problem solving,
ownership of the learning process53; teamwork skills54; pro-
and decision making skills are developed.1,5 At this stage, ERP
blem solving skills54; attitude enhancement55; and informa-
knowledge and skills are internal to the employee and narrow in
tion systems proficiency.16,51
scope, aligning with a specific functional unit.
In the context of training, group knowledge is the scaffold
Zhao et al.5 referred to the final phase of training as “off the
from which individual knowledge is derived. Marks, Sabella,
job training” inclusive of professional advancement or self-
Burke, and Zaccaro56 provided evidence that individuals who
development (p. 578). This is the phase in which employees
share functional responsibilities derive a more in-depth level
acquire systemic knowledge. It involves collaboration and socia-
of understanding and formulate a more exhaustive mental
lization. An ERP simulation enables this development and is one
model. Decision making ability increases significantly when
type of collaborative event that organizations can use to facilitate
there is a harmonization of minds and individuals participate
the cross-disciplinary exchange of knowledge and skills.
on cross functional teams.57
According to Clarke and Winch 43, a collective asset
emerges as employees engage in activities and dialogue
Situated cognition theory to facilitate knowledge sharing enabling the exchange of tacit knowledge, and obtain a
mutual understanding about how each member influences
Tacit knowledge is internal to an individual thereby making
the systemic whole. This cross-disciplinary engagement is
this type of knowledge difficult to capture and share.58,59
foundational in the development of knowledge workers. Lin
Socialization, a process used to share knowledge and mental
et al.64 emphasized the importance of selecting a training
models, allows for the sharing of tacit knowledge between
mechanism capable of enhancing enterprise performance.
individuals.58–60 Situated learning allows for socialization
through a concept known as “peripheral participation”,
where the proximity of individuals to an activity or task and
Simulation participation impact on employee attitude
inclusion of a social component, enables collective problem
solving and immediate application of knowledge.61 Previous studies support the premise that participation in
Situated learning enables the transition of individuals simulations brings about changes in the skills, knowledge
from passive observation to active participation. and attitudes of participants.65–67 Furthermore, research sug-
Organizational learning in an environment mimicking the gests that there is a relationship between employee attitude
workplace can help employees formulate a dimension of and job performance, especially when there is a high degree of
understanding that would otherwise be difficult to obtain. job complexity.68
Situated learning enhances the process of learning through Causing changes in employee attitude can have a direct
the active participation of users, allowing them to facilitate impact on their behavior of IT.32,33 Mechanisms that enhance
the learning process. Grounded in the social learning the- attitudes are important because attitudes partially mediate the
ories, situated learning provides evidence of the connec- connection between employees’ subjective norms and intent
tion between knowledge, community, and learning.62 to share knowledge.20 Kracklauer69 explained that simulations
Situated cognition theory posits that understanding is sys- are effective because learners are practicing skills using ficti-
temic and based on interrelated activities, tasks, and tious, though realistic case studies, in which decisions could
understanding.26 By using communities of practice, indivi- have extreme consequences. Simulations afford users with a
duals learn in a group setting as they collaborate and platform to make joint decisions during calamitous challenges
participate in meaningful work and perform tasks and or monumental events, which could have a direct effect on
processes repeatedly.63 Situated learning focuses on the attitude. As networks of users work together to overcome
4 K. DERANEK ET AL.
has occurred in over 750 academic and business sessions.26 Research objectives
Participants manage the entire order to cash cycle inclusive of
The primary purpose of this research was to model and test a
planning, procurement, production, and sales of a small cor-
knowledge management framework exploring the relation-
porate entity.14 Behind the scenes, a simulator runs causing
ships between skills, knowledge and attitudes toward using
the effects of a dynamic market, where teams must make both
ERPsim. This research investigated if ERPsim, a simulation
strategic and tactical decisions while using their collective
mimicking situated cognition, can be included in the knowl-
knowledge to analyze the SAP transactional information.67 A
edge management fold for extending enterprise ERP knowl-
major advantage of ERPsim is accessibility to industry based
edge, skills and attitudes of employees (Figure 1).
analytical and decision making tools.71
Furthermore, we want to understand if a relationship exists H5: Perceived enterprise systems management knowledge,
between the knowledge constructs and attitude (Figure 2). business process management knowledge, and transac-
The premise of this research is that ERPsim may be a tional skills will affect employees’ attitude toward ERP.
mechanism used within the knowledge management
domain, along a training continuum, to enhance learning
with experienced users. The research team was interested in
investigating the impact of ERPsim on the learning and Research methods
attitudes of experienced employees after the collaboration Population and sample
and exchange of tacit knowledge through dialogue, discus-
sion, and decision-making in an environment that simu- Fifty-two employees across three manufacturing companies
lates situated cognition. Even though experienced users successfully completed all aspects of the study. Each company
have often mastered functional knowledge, they lack sys- allowed at least 10 employees, with at least 1 year of SAP ERP
temic awareness. The hypotheses developed in this study experience, to participate. Employees were randomly assigned
extended the findings from previous research performed to cross-disciplinary teams, teams comprised of employees
with novice users16,67 evaluating the effectiveness of using from diverse departments.
ERPsim as a training mechanism to enhance knowledge, The first company (X) is multinational, headquartered in
skills, and attitudes. Using Social Cognition Theory, this Japan, and has approximately 140K employees worldwide.
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work assesses ERPsim effects on knowledge sharing, skills Participants worked for an American subsidiary in the building
and attitude enhancement. materials division. The second company (Y) is an international
The first four hypotheses investigate the impact of partici- conglomerate headquartered in Germany with over 175K
pation in ERPsim on the knowledge, skills, and attitudes of employees worldwide. Participants of the study worked at a
experienced users. final assembly plant located in the Midwestern part of the
United States. The final company (Z) is an American multi-
H1: Participation in the ERP simulation will increase per- national food-processing corporation headquartered in
ceived enterprise systems management knowledge of Arkansas with over 115,000 employees worldwide. All company
experienced employees. Z participants worked in the corporate headquarters. Twenty-
seven percent (n = 14) of participants worked for company X,
H2: Participation in the ERP simulation will increase per- twenty-five percent (n = 14) were from company Y, and the
ceived business process management knowledge of remaining forty-eight percent (n = 24) worked for company Z.
experienced employees. Analysis of the data occurred at a conglomerate level.
Demographics ERPsim, a difference between the pre and post group mean
was calculated. The same process was used to evaluate if there
Thirty-seven of study participants were female which was
was a significant difference between the perceived business
slightly higher than their normal 27.1% industry representa-
process management knowledge of experienced employees
tion. There was a relatively even distribution of participants
(H2), the perceived transactional skills of experienced employ-
by age with an average age of 42. The majority of participants
ees (H3), and the perceived attitude toward ERP (H4) before
had 1–15 years of company experience with an average of
and after treatment.
9.6 years. Approximately four-fifths (79%) of the employees
Following the paired sample t-test, SmartPLS78 was used to
had less than ten years of ERP experience, with a mean
perform a Partial Least Squares (PLS) analysis following path
experience level of 6.7 years. Eight employees had only used
modeling techniques.78–80 PLS provided information about the
the ERP system for one year and six employees had used the
relationships between the knowledge and skills constructs and
ERP system more than 14 years. Functional backgrounds of
attitude (H5). We designed an inner model to test the relation-
participants fell into five general categories; Information
ships between knowledge and skills with attitude using reflec-
Technology/Change Management (22%), Operations/
tive items. We then calculated the path coefficients and R2
Inventory & Material Management (23%), Accounting/
values. Following this we used a bootstrap resampling method
Finance/Back Office (41%), Sales/Marketing (6%), and
and determined t statistics and significance values.
Engineering/Quality Assurance/Warranty (8%).
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Table 2. Factor loadings. Table 3. Paired sample t-test of knowledge, skills and attitudes.
AE BP ES TS Pre-Test Post-test
AE1 0.87 −0.45 −0.21 −0.41 Mean SD Mean SD n df T p-value
AE2 0.94 −0.56 −0.14 −0.50 Attitude Toward ERP 5.69 0.97 6.02 0.88 52 51 3.76 0.000
AE3 0.95 −0.60 −0.12 −0.53 Business Process 4.29 0.96 4.96 0.72 52 51 5.67 0.000
AE4 0.93 −0.46 −0.24 −0.45
Management Knowledge
BP1 −0.42 0.72 −0.03 0.58
Enterprise System 4.55 1.09 5.01 0.79 52 51 3.34 0.002
BP2 −0.55 0.81 −0.12 0.71
BP3 −0.36 0.76 −0.08 0.66 Management Knowledge
BP4 −0.48 0.82 −0.04 0.63 Transactional Skills 3.26 1.38 4.56 0.98 52 51 7.30 0.000
BP5 −0.41 0.72 −0.02 0.56
BP6 −0.45 0.68 −0.06 0.60
BP7 −0.35 0.80 −0.08 0.65 were analyzed collectively. Mean perceived attitude toward
BP8 −0.32 0.74 −0.08 0.59
ES1 −0.17 −0.09 0.98 −0.08 ERP of experienced employees increased by 0.34 and a paired
ES2 −0.06 −0.12 0.85 −0.11 sample t-test revealed a significant difference associated with
ES3 0.05 −0.13 0.61 −0.05 the group mean before and after treatment, t (51) = 3.76,
TS1 −0.36 0.59 −0.16 0.78
TS2 −0.40 0.66 −0.06 0.87 p = .000 (see Table 3).
TS3 −0.51 0.77 −0.01 0.83
TS4 −0.41 0.63 −0.01 0.79
TS5 −0.39 0.70 −0.18 0.82
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AADM
Enterprise System
AAOF Management ( β ) p-value
Knowledge
AURE p < 0.01 ***
p < 0.05 **
(0.45) 0.01*** p < 0.1 *
KIIN
AEOU
KIVF
KPBP AERP
Business Process (0.24) 0.02** Attitude toward ERP
KPMP Management R2=0.39
AIBP
Knowledge
KSDA
ASAP
KTPP
(0.16) 0.01***
KSDA
TAPI
TASP
TAPG
TAPP
perceived enterprise systems management knowledge was transaction; rather it assessed their knowledge of business
β = 0.24 with p < 0.02, perceived business process manage- terminology, business process functions, and business process
ment knowledge was also significant with β = 0.45 and integration.
p < 0.01 and perceived transactional skills path value was Participants’ mastery levels associated with executing
β = 0.16 with a p < .01. transactions in diverse areas including procurement, sales,
Marcoulides79 recommended a power analysis and report collection, production and accounts payable significantly
of power in PLS studies to confirm the sample is of sufficient improved. Mean pre-test scores associated with perceived
size to detect significant effects. Recently, Aguirre-Urreta & transactional skills were relatively low since employee’s initial
Rönkkö82 provided guidance on why statistical power is training focused on only those transactions required to com-
important, and suggestions on how to assess statistical plete their functional assignments, and pre-test questions
power when using PLS. We used the post hoc statistical asked participants about transactions outside the scope of
power analysis calculator suggested by Soper.83 Our observed their functional units. Post-test scores significantly increased
statistical power was calculated based on three exogenous providing evidence that the ERP simulation enhanced
variables predicting the endogenous variable. The R2 = 0.39 employee transactional awareness beyond their immediate
with a probability level of 0.05 and a sample size of 52 area of responsibility.
provided an observed statistical power of 0.99 indicating our There was a significant increase of perceived attitude
toward ERP after participation in ERPsim. Furthermore, a
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various construct categories across companies. Understanding motivation. This study supported the use of an ERP simulation
if cultural differences have a bearing on employee responses in an organization’s knowledge management system to enhance
should also be further explored. the intellectual capabilities of experienced users.
An interesting extension of the study might be the inclu-
sion and correlation of team performance across the con-
structs of knowledge, skills, and attitude. Investigation of if a ORCID
correlation of team placement associated with the constructs Kimberly Deranek http://orcid.org/0000-0001-8203-8827
of knowledge, attitudes, and employee acceptance of IT exists Alexander McLeod http://orcid.org/0000-0002-4681-7230
would be insightful. Lower placement may infer greater
degrees of frustration experienced by the employee and there-
fore affect employee responses. Investigating if effort and References
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