The impact of ERP implementation on business performance an integrated investigation model

Abstract

This study builds an integrated theoretical model to investigate and explain the impact of Enterprise Resource Planning (ERP) implementation on business performance. This research uses the Data Envelopment Analysis (DEA) approach to assess the technical efficiency of the company's implementation of ERP and applies Structural Equation Modelling (SEM) to test the integrated theoretical model. The empirical results show that ERP implementation can positively affect the process capital of Intellectual Capital (IC); process capital can positively affect customer capital and customer capital ultimately affects business performance. Companies implementing ERP can build process capital to meet the challenges of the competitive market environment. This study builds on past research, which pointed out that ERP had tangible and intangible results, by establishing a comprehensive structure of how ERP implementation affects the company.