The usage of enterprise resource planning system to enhancing performance of medium-sized business excellence

Abstract

This study examines the effectiveness of the enterprise resource planning (ERP) system adoption to enrich the organisational performance of medium-sized enterprise firms. This study focuses on four factors, support from top management, organisational support, information access and technological change. Diffusion of innovation and contingency theories were adopted to examine the effectiveness of ERP adoption. The data were collected through the questionnaires and sent to 355 medium-sized enterprise firms in Lagos, Nigeria. It is important to note that this study was limited to selected medium-sized enterprises in Lagos, Nigeria. The data were analysed using partial least squares structural equation modelling. The study found evidence that three factors, management support, organisational support, and technological change, positively significantly influence the adoption of an ERP system to improve the organisational performance of medium-sized enterprise firms. On the other hand, information access has no significant effect on the adoption of an ERP system. This study received very good responses from medium-sized enterprises, and it is believed that the purpose of this study will increase the understanding of ERP adoption in Nigeria and its effectiveness. Furthermore, the study's findings could inform future studies on how ERP could improve the organisational performance of both SMEs and large companies.