The Effect Of Successful Enterprise Resource Planning (ERP) Systems On Employee Performance

Abstract

The role of modern information technology such as ERP (Enterprise Resource Planning) systems has recently played an important role in processing data into beneficial information and turn it into integrated database system which, in turn, is useful in supporting the business processes of companies in order to generate strategic business decisions. The purpose of this study is to analyze the effect of the implementation of ERP systems on the performance of employees in order to provide information and feedback for the management of the company. This allows for the formulation of the optimal company strategy thus improving the performance of individual employees. This study employs a qualitative analysis approach based on the Delone and McLean’s model of success to analyze the data obtained from the interviews and questionnaires which is designed to resemble the Likert scale and was previously tested on the validity and reliability. This study aims to examine the causal effect of ERP information systems, specifically in utilizing the variable quality of system and information as the independent variable and the performance of employees as the dependent variable with user satisfaction and system users as the two intervening variables. The results display that the quality of sistems has both direct and indirect influence on the performance of employees. Furthermore, the quality of information has proven to show negligible effect on the performance of employees’ variable. The performance of employees’ variable indirectly affected by the quality variable of information through the both system users and user satisfaction intervening variables.