Enterprise Resource Planning Systems and User Performance in Higher Education Institutions of Pakistan

Khalil Md Nor,Rohaizat Bin Baharun,Abrar Ullah,Muhammad Yasir

doi:10.34260/jaebs.426

Abstract

The study is designed to assess the impact of Enterprise Resource Planning (ERP) systems on the performance perceived by users in Higher Education Institutions (HEIs) of Pakistan. This study sought to evaluate the effect of ERPs quality factors including Information Quality (IQ), System Quality (SQ) and Service Quality (SRQ) on User Performance (UP) towards system usage and the mediating role of Perceived Usefulness (PU), Perceived Ease of Use (PEOU) and User Satisfaction (US) between ERPs quality factors and UP. Consequently, a framework is proposed by integration of DeLone & McLean (D&M) Information Systems (IS) success model and Technology Acceptance Model (TAM) to address the research questions. The study used quantitative research methodology and data were collected from 317 employees from eight universities in Pakistan. Structural Equation Modelling (SEM) was performed using SmartPLS and the results indicated that SQ, IQ and SRQ has direct and positive effect on UP. Additionally, PU and PEOU are found to have mediating role between ERP quality factors and UP. Moreover, US has mediated the relationship between SQ, IQ with UP, but failed to mediate the effect of SRQ on UP. Theoretically, the study contributes by integrating factors from D&M IS success model and TAM to investigate the effect of ERP systems on UP through PU, PEOU and US. Practically, the study implied that practitioners needs to put efforts to provide a system which users perceive as useful and free of efforts.

Highlights

The term Enterprise Resource Planning (ERP) was introduced by Gartner Group in 1990s (Arif et al, 2004), comprising of “computer software systems that integrate all related processes within enterprise and provides users with services to manage all functions” (Swartz et al, 2001)
Millions of dollars are invested on ERP systems (Beheshti et al, 2010), and despite of enormous growth, it is claimed that these systems failed
The quality factors are derived from Delone et al (2003), perceived usefulness and perceived ease of use from Davis (1989) and user performance is taken from Abugabah et al (2015)

Summary

Introduction

The term Enterprise Resource Planning (ERP) was introduced by Gartner Group in 1990s (Arif et al, 2004), comprising of “computer software systems that integrate all related processes within enterprise and provides users with services to manage all functions” (Swartz et al, 2001). It is reported that the organization’s expenditure on ERP systems implementation is about $6.1 million, of which 58% are cost overrun, 65% experienced schedule overrun, and in the post implementation stage 53% achieved less than 50-percent of anticipated measurable benefits (Solutions, 2015). Making this a thorny problem deserving further exploration that how to achieve related outcome from implemented systems (Sun et al, 2015). H. Aldholay et al, 2018; Isaac et al, 2017)

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