3.1. Hypothesis development
Based on the theoretical foundation discussed above, ERP systems
focus on internal process efficiency and effectiveness, and can coordinate
information across different departments within a company. ERP
systems are expected to affect internal firm operations by decreasing
internal coordination costs [6,59]. On the other hand, e-business technologies
are focused on external, cross-enterprise process efficiency
and effectiveness. They can reduce external coordination costs and reap
the benefits of supply chain integration [40,59]. Therefore, we propose
the following hypotheses: