The impact of ERP systems on firm and business process performance

Abstract

PurposeThe purpose of this article is to provide further insights into the adoption of enterprise resource planning (ERP) systems and the impacts on organisational performance. It aims at challenging existing claims of ERP vendors with regard to the benefits of their products and at providing evidence of the benefits of bundling ERPS with supply chain management systems.Design/methodology/approachA survey was conducted to collect data on several aspects of organisational performance in companies that adopted ERPS and/or SCMS and the respective control groups. Financial key performance indicators were used to measure overall firm performance and the supply‐chain operations reference model to operationalise performance at the business process (supply chain) level.FindingsThe key results contradict the claims of ERPS vendors insofar as no significant performance differences were found between ERPS adopters and non‐adopters, either at the business process level, or at the overall firm level. While it could be confirmed that the longer the experience of firms with ERPS, the higher their overall performance, no evidence was found of a similar effect on business process (supply chain) performance. Only those ERPS adopters that also adopted SCMS achieved significantly higher performance at the business process level.Originality/valueDespite the small size of the SCMS user sample, the results do provide some important insights into the relationships between ERPS, SCMS and performance which might encourage both researchers and practitioners in that field to critically reflect on the “optimal” mix of modules and software packages within increasingly diverse forms of enterprise systems.