Abstract
This study examines the effect of Enterprise Resource Planning (ERP) post implementation on employees’ performance in Small Medium Enterprises (SME) in Malaysia. Specifically, this study relies on the DeLone and McLean’s information system success model that proposes three quality dimensions namely, system quality, information quality and service quality in examining the effect of ERP post implementation on employees’ performance in SMEs. Using a questionnaire survey on 117 respondents that have experience in ERP, this study shows that out of the three qualities of ERP, system quality and service quality have a significant positive effect on employees’ performance in the SMEs. This study shows that information quality does not have a significant effect on employees’ performance in Malaysia. This study contributes to the information system literature and provides information regarding the quality dimensions which could help managers or ERP providers to assess the success of their ERP implementation.
Highlights
As a result of globalisation and advancement in technology, the business environment is constantly changing and has become increasingly complex with functional units
The effect of Enterprise Resource Planning (ERP) post implementation on employee performance among Small Medium Enterprises (SME) in Malaysia is the theoretical foundation of this study
The three quality dimensions consist of system quality, information quality and service quality
Summary
As a result of globalisation and advancement in technology, the business environment is constantly changing and has become increasingly complex with functional units. ERP implementation among Small and Medium Enterprises (SMEs) either in developed or developing countries has become common due to the technology becoming more advanced, with lower implementation cost (Ahmad & Cuenca, 2013). This is evidenced by the increasing number of ERP vendors which have targeted the SMEs, and that many large ERP vendors such as SAP and Microsoft are actively expanding their activities to the SME sector with repackaged ERP systems (Pinedo-Cuenca, Shaw, Ahmad & Abbas, 2004). ERP vendors would provide this system by considering the SMEs‟ budget and time constraints and present economical, simple, easy-to-install, pre-configured ERP systems or hosting services (Venkatraman & Fahd, 2016)
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