Abstract
In today's knowledge based globalized business world, the contemporary organizations are thriving to apply the innovative as well as modern business techniques and tools in their products and processes regularly. Besides, the organizations give sufficient significance while building up their business organisms and operations in order to utilize the innovative methodologies alongside their other primary procedures. Based on the ERP (Enterprise Resource Planning) and prior literature on management of supply chain, this paper analyzed an integrated model of ERP assimilation and integration by using Saudi Arabian firms as a case. This paper addresses the questions (1) there is a positive link between technological, organizational and environmental factors and ERP implementation, and (2) that ERP implementation encourages SCI (Supply Chain Integration) and performance. The paper empirically examines the antecedents of ERP implementation on SCI which will lead towards the firm performance by using SEM (Structural Equation Modeling) as an approach. Moreover, ERP is used as a mediating factor by using quantitative data, collected from Tadawul. Tadawul is Saudi Arabian stock exchange, in which 167 firms are registered. The results of the paper, may add to the hypothetical comprehension of accomplishing a change in supply chain management, and might leave some imperative implications for the firms motivated by enhancing their supply chain performance. It is also found that the linkage from ERP implementation to SCI is very significant.
Highlights
The most appreciated and dreaded manufacturers nowadays are tightly integrating and positively coordinating their supply chains
The research intends to explore the success factors of implementing ERP system, by addressing the research questions: what are the antecedents of implementing successful ERP system? And how will successful implementation of ERP system impact supply chain integration and the performance of the firm? This research contributes to the literature by being first to consider these issues from one particular country
There is consistent evidence that technological, organizational and environmental factors are playing an important role to ERP implementation as well as SCI, which leads to firm performance, in particular, the key to implementing ERP overcoming the organizational factors
Summary
The most appreciated and dreaded manufacturers nowadays are tightly integrating and positively coordinating their supply chains. The contemporary organizations are gaining their competitive advantage through the integration of different business processes or business functions internally or managing their knowledge, and through the external integration and alignment of business processes like their relationship with suppliers as well as customers. There are large numbers of studies which are contributing to the operations and manufacturing management literature. These contributions now-a-days are concentrated on how organizations can integrate their internal as well as external activities with their suppliers as well as customers. This paper is structured in a way that this introductory section is followed by literature review of supply chain integration and enterprise resource planning. The section, discusses the planned methodology to test the research hypotheses, conclusions and future research avenues will be discussed in the last section
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