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Journal of Operations Management 27 (2009) 310–323

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Journal of Operations Management journal homepage: www.elsevier.com/locate/jom

The efficient use of enterprise information for strategic advantage: A data envelopment analysis
Elliot Bendoly a,1,2, Eve D. Rosenzweig a,1,*, Jeff K. Stratman b,1,3 a b

Goizueta Business School, Emory University, 1300 Clifton Road, Atlanta, GA 30322-2710, United States
David Eccles School of Business, University of Utah, 1645 East Campus Center Dr., Salt Lake City, UT 84112-9304, United States

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ABSTRACT

Article history:
Received 31 July 2007
Received in revised form 11 November 2008
Accepted 13 November 2008
Available online 21 November 2008

A majority of manufacturers make use of some form of enterprise systems (ES), yet on average, the financial impact of ES adoption is essentially neutral. We propose that in an ES environment of easy information access, competitive success depends, in part, on the policies regulating enterprise information use. To explore this proposition, we examine the efficient use of different types of enterprise information in the realization of strategic performance. Efficient firms will devote fewer resources to information use to achieve the same strategic performance as less efficient firms.
We employ data envelopment analysis (DEA) using data collected from Enterprise
Resource Planning (ERP) system adopters at two different points in time in order to calculate a measure of efficient information use. This information efficiency metric is validated as a strong predictor of Compustat profitability. Additional analyses suggest that the most efficient users of information tend to emphasize information related to operational excellence. Regardless of information emphasis, however, efficient manufacturers – in contrast to their

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