Abstract
During the industry 4.0 revolutions and business intelligence era, in which automation and data exchange in manufacturing technologies becomes a prerequisite. Therefore, companies aspiring for achieving competitive advantage need to be updated with the latest technologies. Enterprise Resource Planning (ERP) systems are among the most up-to-date integrated information systems which play particularly important role in overseeing and coordinating all the activities, information and functions and information of a business from common database. Despite the fact that previous studies indicate a lack of understanding of the relationship between ERP systems and competitive advantage using each of ERP business processes attributes (i.e. integration, standardization, routinaziation and centralization) need to be investigated. Based on the 114 functional answers, the data was examined utilizing the following approach: structural equation modeling (SEM) via the software: partial least square (PLS). The results offer empirical evidence on the importance of every ERP attribute in determining firm’s competitive. Evidently, there is a positive association between such variables and the competitive benefit. Such findings present an insight on the association between ERP attributes and the competitive advantage of an enterprise, which could be an input for businesses so as to encounter the industrial digitalization and the era of business intelligence.
Highlights
Peripheral to technology development, business competition has increased expanding the scope of managerial accounting from archival value to more real time reporting [1]
Enterprise Resource Planning (ERP) systems have been proven to be the solution for the information needs of many businesses, Davenport [46] described that ERP implementation can be challenging, time-consuming, expensive, and can place tremendous stress on corporate time and resources
Mirzaee & Ghaffari [52] argued that implementing effective ERP systems can accelerate the speed of information exchange among the personnel and the improvement of their capabilities, the results gained in this study revealed that ERP systems play a positive significant role in competitive advantage
Summary
Peripheral to technology development, business competition has increased expanding the scope of managerial accounting from archival value to more real time reporting [1]. Big data and business analytics which involve large or unstructured data sets play crucial role in every aspect of major companies' decision making, strategic analysis, and forecasting allowing millions of data elements to be created, purchased, extracted, collected, processed, and analyzed from external and/or internal sources to maintain a competitive edge [2]. Based on this challenge, an effective manufacturing strategy must take into account the competitive advantage of the companies over their competitors [3].
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