The Impact of ERP Systems on Organizational Performance

Research on the link between investments in ERP systems and organizational performance has often led to mixed results. Besides internal organizational factors, numerous external contextual factors come into play. This study examined the role of firm size, industry, and duration of ERP system's use in moderating the relationships between antecedent variables and ERP-induced benefits, and overall firm performance. Using a sample of 200 firms, we found user training and education to be a significant antecedent to ERP-induced task and process efficiency, which was in turn confirmed as a significant predictor of overall firm performance. Furthermore, both industry type and firm size were confirmed as significant moderators to the influence of user training and education on ERP task and process benefits, whereas time elapsed since ERP implementation was not a moderator.

This research aims to study the impact of Enterprise Resource Planning (ERP) (information quality, system quality and system use) and human resource management (HRM) practices (training and development, information exchange, recruitment and testing, compensation and benefits, safety and health and employee relations) on organizational performance. Through the Balanced scorecard (financial performance, customer performance, supplier performance and employee performance) in the rebar sector companies within the Arab Republic of Egypt. Therefore, the researcher used the positivism philosophy in this study and the deductive approach because they are more compatible with the nature of the research and with what the researcher wants to reach. He also followed a quantitative method in collecting data, as he prepared a questionnaire and distributed it to 260 individuals working in the reinforcing steel sector. The data is analyzed using some statistical methods such as: correlation, and the structural equation model. The results fully accept the study hypotheses that there is a statistically significant relationship between ERP and organizational performance through the balanced scorecard. In addition to, relationship between ERP and HRM practices, moreover, relationship between HRM practices and organizational performance through the balanced scorecard. While it partially accepts that here is a statistically significant role for HRM practices, in the relationship between ERP and organizational performance through the Balanced Scorecard.

Enterprise resource planning (ERP) systems have become the most important tool for integrating businesses and achieving the “once only” principle in data entry, which contributes to resource efficiency, the enhancement of numerous organizational processes and capabilities, and, ultimately, improved business performance. In this study, we examine the ERP system’s quality as the company’s dynamic capability, contributing to business performance according to the dynamic capability perspective. Thus, we incorporate theoretical mechanisms into the model of the ERP system’s dimensions as a function of financial and non-financial organizational performance. We hypothesized that companies with a better ERP system, with all three dimensions, information, system, and services, will achieve better non-financial and financial performance. The model was tested using primary data collected using a survey method in the environment of a developing country, where the digital transformation of companies is still at a lower level. Structural equation modeling was employed for data analysis, and the results suggest a positive relationship between ERP system quality and both types of organizational business performance. The results indicate that not all dimensions have the same effect. The quality of information and service is particularly important for business performance until the system’s technical characteristics have no significant effect.

PurposeThe study aims to examine the joint effect of total quality management (TQM), enterprise resource planning (ERP) and organizational performance on organizational excellence.Design/methodology/approachTo achieve the goal of this study through the hypothesized model, a survey questionnaire research design was employed. The data were collected from a Dubai Police organization. Out of 550 questionnaires, 320 questionnaires were returned. The structural equation modelling (SEM) partial least squares approach was used to analyze the data for measurement and structural models.FindingsThe statistical results confirmed the positive and significant effects of TQM, ERP and organizational performance on organizational excellence. The mediation role of organizational performance between TQM, ERP and organizational excellence also was confirmed.Practical implicationsThroughout this study, further details and valuable implications have been discussed. Findings provide several practical implications. Findings also help practitioners and managers make proper decisions when implementing TQM, ERP and excellence practices in their organizations. With the joint effect of TQM, ERP and organizational performance, organizations can achieve maximum strong excellence and remain in a competitive market. This current study presents potential to be used in didactical initiatives.Originality/valueThis study is a unique empirical research that examines the joint effect of TQM, ERP and performance on excellence relationships. In other words, the current study is one of the few studies that investigate the mediating role of organizational performance beside the organizational excellence as the ultimate variable in developing country, specifically in UAE.

Background: The advent of Artificial Intelligence (AI) within organizational frameworks, particularly in the realm of Human Resource Management (HRM), has initiated a transformative shift in operational efficiencies and strategies across various sectors. This integration aims to leverage AI's capabilities to augment human decision-making, enhance operational efficiency, and foster a culture of innovation within organizations. Despite the potential benefits, the practical application and tangible impact of AI strategies on organizational effectiveness remain areas of significant academic and practical interest. Objective: This study aimed to investigate the influence of AI strategies and creativity oriented HRM practices on organizational effective performance. It sought to explore the synergistic relationship between AI implementation and innovative HR practices, and their collective impact on enhancing organizational efficiency and performance metrics. Methods: Employing a cross-sectional survey design, the study collected data from employees working in private hospitals in Lahore, Pakistan. A total of 144 valid responses were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the relationships between AI strategy implementation, creativity-oriented HRM practices, and organizational effective performance. Reliability and validity of the constructs were evaluated through Cronbach's alpha, composite reliability, and average variance extracted (AVE) measures. Results: The findings revealed that AI strategy implementation (Cronbach's alpha = 0.942, AVE = 0.611) and creativity oriented HRM practices (Cronbach's alpha = 0.932, AVE = 0.585) were both significantly associated with enhanced organizational effective performance (Cronbach's alpha = 0.932, AVE = 0.533). The path analysis indicated strong positive relationships between AI strategies and creativity-oriented HRM practices (β = 0.688, p < 0.001), between AI strategies and organizational performance (β = 0.228, p = 0.004), and between creativity-oriented HRM practices and organizational performance (β = 0.597, p < 0.001). The model explained 59% of the variance in organizational effective performance. Conclusion: The study concludes that the strategic integration of AI within HRM frameworks significantly contributes to organizational effectiveness. Emphasizing creativity-oriented HRM practices in conjunction with AI strategies can lead to substantial improvements in organizational performance. These findings underscore the importance of a strategic approach to AI integration in HRM, highlighting the need for organizations to foster environments that promote innovation and creativity.

Enterprise Resource Planning (ERP) systems have transformed the way of doing business in the modern environment. More specifically, they integrate all functions of an enterprise, allowing seamless information dissemination and facilitating the decision-making process. However, the implementation of ERP systems is not always a prerequisite of operational and business success. On the contrary, companies should thoroughly investigate the critical factors that have an impact on the implementation process. Under this context, the present study aims at developing and testing a three-dimensional conceptual framework, that investigates the antecedents of “ERP implementation success”, as well as the impact of the implementation itself on “organizational performance”. The proposed conceptual framework was tested, using a newly-developed structured questionnaire, in a sample of 204 Greek companies that have already implemented an ERP system. Results indicate that “end-users” constitute the most significant actor for ensuring ERP implementation success. Another important empirical finding is that, among the three dimensions used to measure “ERP implementation success” (information quality, system quality, service quality), “information quality” has the strongest impact on all the dimensions of “organizational performance” (internal efficiency, competitiveness, profitability).

The effect of job embeddedness on organizational citizenship behavior and job performance (study case: Secondary School Teachers in Najaf Abad)

PurposeThe purpose of this paper is to focus on the implementation process of enterprise resource planning (ERP), the evolution of business model innovation (BMI) and the organizational outcome. This research analyses how ERP and BMI are related and, in turn, what is the final the impact on organizational performance.Design/methodology/approachThe sample consisted on 104 organizations from different industries, all of which used an ERP software. A structural equation model was used to test the six hypotheses.FindingsThe results indicate that the BMI constructs considered (i.e. value-generation and organizational complexity) mediate the impact of the ERP constructs (organizational adaptation and organizational resistance), in organizational performance. Successful ERP implementation is not an end itself for this companies, but merely a path and a process for improving the business model with the aim improving performance in the marketplace.Research limitations/implicationsThis study offers a new outlook on how a company should leverage the ERP adaptation, and any resistance in the organization to innovating in the business model. This study is rooted in the evolutionary perspective of BMI, but it also integrates into an overall model other points of view such as the rational positioning view and cognitive view.Practical implicationsOrganizations must understand the ERP flows in depth, each ERP flow is the work result of a multitude of companies over several years. All departments, and in particular the research and development department must participate actively in the ERP implementation. Organised complexity means opportunities for success in the market. Organizations must train their departments in ERP and not just teach them how the ERP works. ERP implementation needs consider improvements to the business model and ultimately the performance, but not separately.Originality/valueBMI has received contributions from several domains such as entrepreneurship, management organization and strategic management among others. Nonetheless, the role of ERP in BMI is far from being understood and the few contributions focus only on technologyper se. To the best of our knowledge this is the first study that has explored the connections of ERP and BMI and in turn the final outcome in organizational performance.

Gulati, Rachna PhD; Mikhail, Osama PhD; Morgan, Robert O. PhD; Sittig, Dean F. PhD Author Information

Learning organization plays an important role in improving organizational performance. It is well-known from various sectors that this variable plays a significant role in enhancing the performance of various organizations and is used for promoting effective competitive advantage. Although there are many studies in this area of management, very few studies are available on Higher Education Institutions (HEIs). The objective of this study is to review the literature on learning organization and its relationship with organizational performance. In addition, the study reviews the literature on strategy adoption and knowledge transfer as they are also ascribed to the improvement of organizational performance. Hence, there are relationships between strategy adoption and knowledge transfer and organizational performance. Finally, the study makes a conclusion based on previous studies on the relationship among the variables and recommends that empirical studies use moderating and mediating variables between learning organization and organizational performance improvement in the HEI setting.

Purpose – Organizational performance is heavily influenced by human resources in government administration, including resource allocation for individual work in all organizations. Organizational performance can be improved by ensuring that each level in the organization meets the job requirements and has a clear plan to support the achievement of organizational goals. Methodology/approach – This research uses quantitative research and uses structural equation modeling analysis (SEM) with Partial Least Squares (PLS) software. The study has a population of 50 officials who support the planning and performance measurement of the regional government unit of the province of Banten. Findings – The result is that learning organization has a direct impact on organizational commitment, while learning organization has no impact on organizational performance. Employee empowerment affects organizational commitment and organizational performance. Organizational commitment influences organizational performance. Organizational commitment does not mediate between learning organization and organizational performance, but may mediate between employee empowerment and organizational performance. Novelty/value – Learning organization and employee empowerment promote sustainable improvement, innovation, and adaptability, and empower employees to make the right decisions and contribute to organizational goals. It fosters commitment, emotional attachment, and productivity, enabling organizations to adapt and maintain competitive advantage.

Purpose- This study is based on IHPS BPK RI 2017 in the second semester. There are problems in terms of the performance of local governments in Lampung Province. The purpose of this study is to analyze the effect of 4 successful factors of AIS consisting: service quality, information quality, data quality, and system quality on organizational performance moderated by organizational culture. Methodology- The population of this study is 29 Regional Apparatus Organizations (RAO) in South Lampung Regency using a saturated sample. Contingency theory is the basis of this study in order to form a mindset connecting four successful factors of AIS supported by the organizational culture of the leadership of the RAO on organizational performance. The analysis technique uses Structural Equation Model (SEM) through the SMART PLS version 3.0 application.Findings- The results of this study indicate that there is a significant positive impact on organizational performance which has been presented by service quality. On the other hand, organizational performance is not influenced by information quality, data quality, and system quality. Whereas, the organizational culture does not constrain the relationship of service quality, information quality, data quality, and system quality on organizational performance. Conclusion- This study concluded that service quality is positve significantly on the organizational performance. Whereas, the information quality, data quality, and system quality insignificant relationship with the organizational performance in regional apparatus organizations. Therefore, further studies could be conducted to include other variables such as employee motivation, employee performance, self-efficacy, in indonesian local government.

The study examined factors in user satisfaction with ERP implementation pig farming and processing organization in northern Thailand. The target population included ERP users and government advisers involved with its implementation. A theoretical model with six determinants (Business Process of Reengineering, Top Management Support, Education and Training, Information Quality, System Quality and Perceived Usefulness) of User Satisfaction was developed. Data was collected using a questionnaire (n =228). From a theoretical perspective the findings supported most of those in previous studies whereby Top Management Support had the greatest effect on User Satisfaction followed in order by Perceived Usefulness, System Quality, and Information Quality while Business Process Reengineering and Education and Training had relatively small effects on User Satisfaction. New findings showed that contrary to those in previous studies: Top Management Support and Education and Training did not have significant effects on System Quality; Business Process Engineering only had significant indirect effects on Perceived Usefulness and User Satisfaction; and Education and Training only had a significant indirect effect on User Satisfaction. From a practical perspective the findings enabled the formulation of a hierarchy of objectives aimed at increasing user satisfaction each with an associated hierarchy of actions. Key Words: Enterprise resource planning (ERP); Critical success factors (CSF); Information and system quality and net benefits

This study looks into the mediation aspect of user satisfaction in relation to the linkage between the adoption of Enterprise Resource Planning (ERP) and the performance of any organization in the manufacturing industry of Telangana, India. Even though more and more people are using ERP systems in developing countries, the way they achieve quantifiable outcomes remains invisible, particularly when human beings are involved. In order to study this dynamic, structured survey method was performed on 406 ERP users working in different industrial businesses. Structural Equation Modeling (SEM) was used in the study adopting SPSS and AMOS in analyzing both direct and mediated correlations. The findings indicate that user happiness is tremendously enhanced by ERP systems. Some of the aspects that make the users feel good about the system are usability, integration and system stability. However, just the implementation of ERP did not make a significant impact on the performance of the organization. The influence was very strong when it was strained through user satisfaction meaning that technology driven improvements only have a significant effect when employees perceive value and utility of the system. The present study contributes to the understanding by demonstrating experimentally the mediating role of satisfaction between the ERP and performance relationship in Indian manufacturing, one of the industries with rapid, but complex digitalization. The report cautions that investing in ERP infrastructure might not be as effective as it would otherwise be when coupled with user-friendly methods that foster involvement, trust and sustained application. This study provides both theoretical and practical information as it emphasizes the necessity of combining training, support, and continuous improvement with ERP implementation. It concludes that organizational performance can be improved not only through the contribution of technological capabilities but also through satisfaction-related usage that transforms ERP systems into sources of competitiveness and long-term success.

Two of the essential IT investment options that managers resort are supply chain management and enterpriseresource planning. These options are known in the relevant literature as factors contributing to the enhancementof organizational performance. The objective of this study is to investigate the enterprise resource planningadoption and its influence on organizational performance through supply chain management. This articlesuggests a new model which applies enterprise resource planning with supply chain management to optimalorganizational performance. Structural equation model was utilized to test the model fitting level and the fourproposed hypotheses. The required data for this research was collected from 174 companies in Malaysia throughprepared surveys. The results support, through empirical evidences, the existence of positive effects ofenterprise resource planning on the supply chain which ultimately results in improved overall performance ofthe studied organizations.