Enterprise Resource Planning Benefits Research Articles

How innovative organization culture affects firm performance in the wake of enterprise resource planning? evidence from energy- and non-energy-sector firms in Pakistan

Rapid globalization during the last few decades has caused many difficulties for firms to survive, sustain, and maximize shareholders’ wealth. The Enterprise Resource Planning (ERP) system provides extensive access to data and upgraded information to achieve the specified objectives. This study examines how Innovative Organizational Culture (IOC) affects firm performance in Pakistan. In doing so, this study collects a comprehensive dataset from 234 high- and medium-level managers working in different sectors across six major cities of Pakistan. We construct several hypotheses and employ Partial Least Squares Structural Equation modeling to test the selected premises. The results reveal that IOC and the benefits of ERP are positively related to firm performance, IOC is also positively associated with the implementation of ERP, and the implementation of ERP is positively related to the benefits of ERP. Regarding mediating relationship among the constructs, this study shows that the implementation of ERP mediates the relationship between IOC and the benefits of ERP and the benefits of ERP mediate the relationship between the implementation of ERP and firm performance. Given that Pakistan has been facing a chronic energy crisis for the last few decades, this study conducts a subsample analysis and divides the sample into two groups—“energy and manufacturing” and “service and non-manufacturing” sector firms. Our robustness tests reveal that the implementation of ERP is positively and significantly related to firm performance only in the subsample of service and non-manufacturing sector firms. In contrast, it is negatively and insignificantly related to firm performance in the subsample of energy and manufacturing sector firms. The findings of this study provide numerous operational insights to managers to adequately emphasize and strengthen IOC to sustain the change management system. Specifically, this study suggests that senior- and medium-level managers should continuously monitor the implementation of ERP and determinedly engage themselves in the team management and communication process to achieve higher firm performance.

DEVELOPMENT OF INNOVATIVE DIGITAL TECHNOLOGIES FOR ENTERPRISE MANAGEMENT

The efficacy of the organization and corporate strategy are substantially impacted by enterprise resource planning (ERP) technologies. However, it might be difficult to manage and apply the anticipated benefits of ERP. Workarounds further complicate outdated and evolving business procedures, which impedes the ongoing development of ERP. As a result, reaping the rewards is sometimes challenging. The complexity of realizing advantages also rises when subsidiaries are not able to discover new benefits on their own, even though benefits may differ from subsidiary to subsidiary. ERP systems, which integrate, synchronize, and centralize corporate data, are frequently viewed as a key resource for businesses that thrive in a fast-evolving global market. The selection of ERP systems is a crucial and challenging strategic choice because of the high cost of purchasing, installation, and implementation as well as the variety of offers. Because there are many different tangible and intangible requirements. This paper presents data on the development of innovative digital technologies in enterprise management. The main theoretical concepts of innovative digital technologies are described, as well as automated control systems and methods of their development are studied. This paper presents a model of innovation management in an industrial enterprise, an analysis of the ICT market, and developed recommendations on the methodology for implementing an ERP (Enterprise Resource Planning) system.

An interpretive study on the role of top managers in enterprise resource planning (ERP) business value creation

This paper contributes to the growing body of literature on enterprise resource planning (ERP) business value by investigating organizational ERP development in view of the active involvement, vision, and direction of top management teams (TMTs). A top-down approach to ERP adoption and implementation was adopted with sociomaterial and social construction assumptions about the mechanisms that generate ERP business value. A single ERP case study was analyzed in an industrial setting by interpretive means, thus providing theoretically based, detailed and interesting insights. Our research suggests that ERP benefits emerge during the TMT’s encounters with the ERP system through pragmatic action and situated improvisations. Our findings suggest that ERP adoption is strongly influenced by TMT characteristics and social processes, while complementary process-change needs are perceived by the executive participation during implementation. We also suggest that when the ERP system goes live, a synergistic relationship termed TMT-IT imbrication will create the technological infrastructure perceived as ERP value. At this postimplementation stage, various TMT characteristics and processes are proposed that greatly influence top managers’ patterns of imbrication behavior. Several propositions are developed and summarized in a framework to enhance the current understanding of managerial agency in achieving business benefits from ERP systems. The paper concludes with implications for top managers and future research directions.

Benefits Realisation in Post-Implementation Development of ERP Systems: A Case Study

Enterprise Resource Planning (ERP) systems influence organisational performance and business strategies significantly. However, identifying, managing, and realising expected benefits of ERP is chal ...

Enterprise Resource Planning system and its impact on tourism companies' operational performance

Purpose: The purpose of this study was to find out the relationship between applying the Enterprise Resource Planning system and operational performance, and to develop proposed framework to achieve the requirements of the ERP system, in addition, to measure its availability within tourism companies. Research methodology: The study design is a qualitative study. Data are presented in descriptive form, with in-depth and adaptable analysis. Sample Collection by intentional sampling, the sample chosen depends on the study objectives without regard to the ability of a generalist. The study was based on the distribution of a survey list on a random sample of employees of tourism companies in Egypt. Results: The structural equation modeling results indicate that all the employed dimensions to gauge the impact of ERP system (represented by the components of the system), have direct influence and an indirect impact on the operational performance and then access to the quality of tourism service provided. These findings help to explain the mixed discoveries in the literature concerning the pattern of the causal relationship between ERPs with operational performance and service quality. Limitation: The field study data were collected from survey forms from May to July 2019. Three hundred thirty questionnaire forms were distributed, 310 usable replies were received with a response rate of 93.9%. Contribution: Enterprise Resource Planning (ERP) system has received considerable attention in the last years. Many organizations seek to integrate their IT infrastructures by implementing the Enterprise Resource Planning system (ERP). So implementing ERP system helps tourism companies in raising performance rates through reducing the time to do more business, reducing cost, increasing productivity, which leads to higher performance rates. Keywords: Enterprise Resource Planning system, ERP business value, ERP benefits, Operational performance

PENERAPAN MODUL PEMBELIAN PADA INDUSTRI MANUFAKTUR INTERIOR RUMAH DENGAN MENGGUNAKAN ERPNEXT

The development of business in this globalization era has led to increasingly a competition, the application of IT in business today isn’t enough, therefore a company needs enterprise resource planning (ERP) to keep the company's cycle spinning amid global competition. Now ERP not only be applied to large companies,UKM/UMKM Currently can use ERP to run the business process. Unfortunately, the company doesn’t understand the importance of ERP and the benefits of ERP, including CV Rumah Indah, a home interior company, which is a case study in this journal. CV Rumah Indah still applies conventional business processes which are all done manually. Even though in practice the business owner encounters several obstacles in the distribution of raw materials, the distance between the production house and the supplier, and there is one raw material that is difficult to obtain if supplier’s stock runs out so the company must be waiting till the materials available. It takes the business owner have to go back to the supplier to take orders for the raw material that was ordered on the previous visit, besides that the interior production time becomes delayed. Therefore, the author took initiative to provide a solution of the problems faced by business owners, the solution is applying the purchase module on ERP using the open source ERPNext software. Hope that implementation of ERP being able to help in the effectiveness and time efficiency when purchasing raw materials to suppliers.

ERP Sand Clock Barriers and Antecedents Model: From the Lens of Task Technology Fit Theory

The deployment of Enterprise Resource Planning (ERP) systems worldwide has become an evidence of the unprecedented movement towards integration of information technologies. The importance of continuance usage during the post implementation stage should not be neglected as to secure an optimal advantages offered by ERP system, that is achieved through minimizing ERP system usage barriers. As such, successful implementation of an ERP system does not necessarily guarantee that the system will be comprehensively used or accepted by users of the system. ERP benefits can only be realised and sustained if users continue to have favourable experiences in using the system. While many previous studies have examined ERP system during the implementation phase, only a few have revealed barriers to ERP usage as well its antecedent factors during the post-implementation phase. The purpose of this paper is to determine ERP system usage barriers and unearth the root causes to the barriers. To achieve the aim, this research was guided by the ‘soft-positivism’ paradigm, a paradigm that combines elements of positivism and interpretivism. By using this paradigm, the investigator brought certain prior expectations to the data analysis which are consistent with positivist research and which also build rich explanations from the data, consistent with the interpretive assumption. Based upon the lens of Task Technology Fit theory, this study adopts a qualitative method using multiple case studies. Three Malaysian organisations that had implemented ERP were investigated by conducting 30 semi–structured interviews and reviewing archival records and documents. The interviews were guided by the research objectives. Data were analysed by using open and thematic coding.The finding indicated four major areas of ERP usage problems: system, data, and technical infrastructure and interface problems. Besides that, several antecedent factors to the problems were identified. These factors fall into four major categories: organisation, user, task and technology, and include lack of support from either external or internal expertise, lack of individual strength and limited technology affordance. The outcome of this study was encapsulated in the form of the ERP Sand Clock Barriers and Antecedents Model.The paper contributes to post-implementation ERP system literature by stressing the complex relationships between usage barriers and antecedent factors. By identifying the underlying causes of SAP usage barriers, it could become the motivating factor for individual users to undertake reflective feedback and to achieve extended use of the implemented ERP system.

ERP Sand Clock Barriers and Antecedents Model: From the Lens of Task Technology Fit Theory.

The deployment of Enterprise Resource Planning (ERP) systems worldwide has become an evidence of the unprecedented movement towards integration of information technologies. The importance of continuance usage during the post implementation stage should not be neglected as to secure an optimal advantages offered by ERP system, that is achieved through minimizing ERP system usage barriers. As such, successful implementation of an ERP system does not necessarily guarantee that the system will be comprehensively used or accepted by users of the system. ERP benefits can only be realised and sustained if users continue to have favourable experiences in using the system. While many previous studies have examined ERP system during the implementation phase, only a few have revealed barriers to ERP usage as well its antecedent factors during the post-implementation phase. The purpose of this paper is to determine ERP system usage barriers and unearth the root causes to the barriers. To achieve the aim, this research was guided by the ‘soft-positivism’ paradigm, a paradigm that combines elements of positivism and interpretivism. By using this paradigm, the investigator brought certain prior expectations to the data analysis which are consistent with positivist research and which also build rich explanations from the data, consistent with the interpretive assumption. Based upon the lens of Task Technology Fit theory, this study adopts a qualitative method using multiple case studies. Three Malaysian organisations that had implemented ERP were investigated by conducting 30 semi–structured interviews and reviewing archival records and documents. The interviews were guided by the research objectives. Data were analysed by using open and thematic coding.The finding indicated four major areas of ERP usage problems: system, data, and technical infrastructure and interface problems. Besides that, several antecedent factors to the problems were identified. These factors fall into four major categories: organisation, user, task and technology, and include lack of support from either external or internal expertise, lack of individual strength and limited technology affordance. The outcome of this study was encapsulated in the form of the ERP Sand Clock Barriers and Antecedents Model.The paper contributes to post-implementation ERP system literature by stressing the complex relationships between usage barriers and antecedent factors. By identifying the underlying causes of SAP usage barriers, it could become the motivating factor for individual users to undertake reflective feedback and to achieve extended use of the implemented ERP system.

ERP Service for Small and Medium Enterprises in Saudi Arabia

<p>This paper aims to present the benefits of enterprise resource planning (ERP) service over traditional ERP through the development of ERP in the form of software-as-a-service<br />(SaaS). This service is published in response to the fact that traditional ERP is rarely implemented in small and medium enterprises (SMEs) in Saudi Arabia due to the high<br />cost and risk of implementation failure. This paper can be used to encourage SMEs in Saudi Arabia to exploit ERP service. ERP service can be accessed by client via any<br />programming interface over an Internet connection without special configuration, thus highlighting the core competencies of the SMEs. As a prove of concept, the stock service<br />is published as a concrete ERP service. Two types of application were developed to access the service: desktop and smartphone based application. Based on a simple qualitative<br />assessment, it is acknowledged that ERP service is advantageous over traditional ERP systems in terms of its scalability, agile implementation, global accessibility,<br />mobility, low operational costs, lack of upfront costs, best practices, rapid upgrading, and interoperability among other services.</p>

The Role of Technology, Organization, and Environment Factors in Enterprise Resource Planning Implementation Success in Jordan

In many ways, the application of Enterprise Resource Planning (ERP) systems is useful. In today’s business arena, ERP is regarded as a necessity. Implementation of ERP is costly and requires a lot of efforts but in Jordanian organizations, its success rate has been unsatisfactory. Hence, this study attempts to identify factors linked to implementation success of ERP in Jordan. The strategic factors are examined and they include technology adoption, web site service, competitive, top management support, change management, business process management, and trust. Questionnaires were distributed to ERP users in Jordanian firms which returned 141 responses which were analyzed. The results show significant linkage between technology adoption, web site service, competitive, top management support, change management, and business process management, and ERP implementation success. Nonetheless, the findings do not support the linkage between business process management and ERP implementation success. The findings show that firms can leverage TOE for improving ERP’s implementation success to gain the anticipated benefits. Also, there is possibility that different critical success factors have different impacts on ERP benefits. Such finding expands the supposition of TOE theory that resources generate competitive advantages. This paper adds to researches on ERP by providing further evidence of the differing impacts of TOE on the successful implementation of ERP.

The Accountant Satisfaction in Using ERP Systems

Although studies of the benefits of Enterprise Resource Planning (ERP) have been done before, the analysis of accountant satisfaction models in using ERP systems has not been explored specifically from the perceptions of accounting benefits, operational benefits, individual productivity, and managerial benefits. There has been significant growth in the use of ERP systems in Indonesia. Therefore, this study proposes a model of the accountant satisfaction in using the ERP systems. The population of this study is the accountants working in Jakarta. The data are collected from ERP users in several companies in Jakarta by using a questionnaire with snowball sampling method. As much as 282 respondents return the questionnaire. The analysis of the proposed model is done by Partial Least Square (PLS). The results of the analysis provide support to the proposed model that accounting benefits, operational benefits, individual productivity, and managerial benefits are indicators that measure user satisfaction of ERP systems. The expected theoretical contribution of the results of this study is to provide insight into the system user satisfaction model, apart from the practical contribution for ERP provider companies for paying attention to the factors affecting ERP user satisfaction.

Critical success factors of ERP benefits in CREM: evidence from Austria, Germany and Switzerland

Purpose The purpose of this study is to find answers to the question whether a fully-integrated real estate (RE) solution within an Enterprise Resource Planning (ERP) landscape delivers a visible and measurable contribution to organizational efficiency in corporate real estate management (CREM), a field still dominated by specialized, but stand-alone software packages. Design/methodology/approach The authors set up a model of CREM with the enterprise resource planning (ERP) systems being the hinge between the RE strategies and organizational efficiency. The model was tested by a written questionnaire to respond on the benefit expectations on ERP benefits. Findings In many cases, the results show a negative gap between expectations and realized benefits. The authors identified benefit stars and dogs within the sample. Stars realizing high benefit ratios on average have more often chosen the form of a shared service center for their CREM department, have reengineered the business processes more intensively, had more often a legacy system as a predecessor of the SAP ERP, trained employees more intensively and showed a higher degree of customization of the RE module than the benefit dogs of the sample. Practical implications Newly formed CREM departments looking for optimal IT solutions find decision support regarding the best fit for their IT landscape. Already institutionalized CREM units running an ERP system will find concrete evidence for improvement. Originality/value This is the first study of benefits and critical success factors of ERP implementation and operation for modern CREM. It is the attempt to bridge the gap between business and IT, showing the enabler role of ERP systems for efficient business processes, satisfied corporate users and motivated employees.

IMPLEMENTASI PENERAPAN COSO, PENERAPAN GCG DI PERUSAHAAN YANG BERBASISKAN TEKNOLOGI INFORMASI UNTUK MEMPEROLEH KINERJA OPERASIONAL DAN KINERJA KEUANGAN YANG BERKUALITAS

Due to increasing global competition, many enterprises are aware of the benefits of Enterprise Resource Planning. This study is focuses on aspects of the ERP utilized in manufacturing industries. This paper report on one suit case study application. The case was conducted by using interview and observation techniques. The Situation-Actor-Process (SAP) paradigm was used to analyze the case. A synthesis was performed in the management context, situational factors, processes used in ERP system and the relationship among the adherence to COSO, and GCG implementation. The resultant in learning issues in conjunction with the conclusion of the study may help in identifying the potential key areas in ERP implementation, adherence to COSO, and GCG implementation in accordance to get best quality in operational performance that has the implication to best quality to financial performance. Results reveal that top management support, mandate and commitment have positvely related to ERP implementation, adherence to COSO, and GCG implementation. Future research by using hypothesis development can be conducted to show whereas there are a positive relationship among the variables. Keywords: ERP Implementation, Adherence to COSO, GCG Implementation, Operational Performance, Financial Performance.

Organizing ERP research: a knowledge-centric approach

Purpose The purpose of this paper is to gain insight into enterprise resource planning (ERP) research by framing ERP intellectual contributions using a knowledge-centric taxonomy that was originally proposed as an organizing framework for classifying conceptual contributions in marketing. Thus the paper provides a better understanding of existing gaps and future opportunities in ERP research. Design/methodology/approach Using MacInnis framework, the authors classified a sample of 300 ERP articles published during the period 2000-2014 into a topology of four generic contributions types and eight sub-types. Findings The findings indicate that whereas the explicating type received the most attention by researches, the debating type received the least. It also seems that there is a temporal dimension to the different types of conceptual contributions. Identification of usefulness of the ERP systems to business was not addressed as would have been predicted by the build-evaluate lens of March and Smith framework. Research limitations/implications The main limitation of this research is that only used articles from scholarly journals, and did not include conference proceedings, books, and other outlets. Another limitation is that the search criteria was title-based, which may have missed some relevant papers. Research implications include highlighting the importance of a knowledge-centric view of ERP research, and practical implications include the call for robust measurement criteria for ERP benefits and rigorous ERP comparison schemes. Originality/value The main contribution is providing an alternative approach to framing the ERP intellectual contributions. The proposed taxonomy revealed major areas of focus and opportunities for future ERP research emphasis. To the best of the authors’ knowledge, this is the first instantiation of MacInnis framework into ERP research.

The Relationships between Enterprise Resource Planning (ERP) Implementation Benefits in Turkish Manufacturing Firms

The purpose of the paper is to investigate the relationships between benefits of ERP implementation. This study proposes a measurement model for identification of benefits of ERP. The paper also covers testing of hypotheses via the data obtained from a questionnaire, applied to Turkish manufacturing firms. The results confirm that operational, strategical and tactical benefits of ERP implementation are positively related to each other. Moreover, responses show that ERP can affect the whole units of the enterprise and make contribution as a whole. Although KMO test statistics prove that efficient sample size of 241 is achieved, there is need for greater samples for generalizing the results. Firm managers can follow up the empirical data and consider the enterprise as a whole. Moreover, academics can make use of the methodology of the paper. They can also use the empirical findings to compare and support their own results in different contexts. The present paper follows the research call of Yang and Su (2009, p. 722) and investigates the relationships between the benefits of ERP implementation. The literature is rich in studies examining the CSFs of ERP implementation but there is a gap in the benefits of these systems.

The Benefits of Implementing ERP System in Telecommunications

Many organizations invest heavily in Enterprise Resource Planning (ERP) system, expecting positive benefits to their organization by implementing such system, and telecommunications company is not excluded. Considering the perks that organizations may enjoy such as better customers satisfaction and improved decision-making for top management, this robust system became among the most risky investment for corporate companies. The relationships between information quality, system quality, service quality, user satisfaction and net benefits of ERP are highlighted in this paper. Our study shows service quality had a good relationship towards net benefits and user satisfaction mediates service quality and net benefits.

Developing Instruments for Enterprise Resources Planning (ERP) Post-Implementation Failure Model

Implementing Enterprise Resource Planning (ERP) projects in many organizations are faced with failure concept in recent years. Researchers focused to implement ERP projects successfully by proposing the success model. However, through these attentions to get ERP benefits, the ERP failure measurement model is required. Therefore, the aim of this study is to develop the instruments for ERP post-implementation failure measurement model. To achieve this outcome, the study firstly evaluates the suitability of Technology-Organization-Environment framework for the proposed conceptual model. Constructs were used for this model included two formative and six reflective constructs. A questionnaire was developed to test the validity and reliability of instrument items. A survey was conducted among Iranian industries to collect data and data analyzed by Smart PLS software. The results indicated that all instruments items included 37 critical risk factors (CRFs) as measurement were acceptable for the ERP post-implementation failure model.

ERP in agriculture: Lessons learned from the Dutch horticulture

Farming nowadays is a complex managerial task that imposes stringent requirements on farm management information systems. In other sectors, Enterprise Resource Planning (ERP) systems are widely implemented to meet such requirements. This paper assesses the applicability of ERP systems in the agri-food domain by investigating the experiences of agri-food companies that already have implemented an ERP system. More specifically, the research has analyzed the drivers and barriers for adoption of ERP in the Dutch horticultural sector. The results show that the alignment of ERP with the specific characteristics and requirements of a company is a crucial challenge in order to capitalize the benefits of ERP. The study also shows that it is possible to deal with this challenge. The majority of the respondents (62%) is positive about of the match of the specific ERP solution with the company’s business processes during implementation. Most of these respondents have implemented a system that includes a sector-specific layer around a standard ERP solution. Moreover, it is concluded that a proper management of the orientation, selection and implementation processes is of crucial importance for a successful adoption.

Identifying the drivers of enterprise resource planning and assessing its impacts on supply chain performances

Purpose – Enterprise resource planning (ERP) is intended to integrate all facets of a company’s business operations encompassing production planning, material purchasing, inventory control, logistics, accounting, finance, marketing, and human resource management by creating a single depository of the database that can be shared by the entire organization and its trading partners. Through an empirical study, the purpose of this paper is to identify a multitude of drivers that facilitate or hinder the implementation of ERP in business environments. Also, this paper determines its role in supply chain operations and assesses its impact on supply chain performances. Design/methodology/approach – To examine which factors drive the ERP adoption and gauge the level of the ERP success, the authors develop a research framework based on two well-known theories in the strategy literature: a contingency theory; and a resource-based view of the firm. This research framework allowed us to develop a series of hypotheses regarding the use of ERP for strategic sourcing. To test hypotheses, the authors carried out the study in three phases: a pre-pilot; a pilot; and a large-scale questionnaire survey. In the pre-pilot phase, the authors generated potential survey items through theory development and a literature review. In the pilot phase, the authors develop a structural equation model along with the identification of valid constructs based on structural interviews and the Q-sort method. At the last stage, the authors conducted a large-scale survey via mail questionnaires primarily targeting the Korean industry comprised of manufacturers and their suppliers and customers. Findings – The firm’s ERP adoption and implementation decision is mainly affected by its internal environment. Defying the conventional wisdom, the firm’s external environment has little influence on its decision to adopt and implement ERP. However, through the mediating role of an internal environment, an external environment still indirectly influences the ERP adoption and ERP implementation decision. Also, the authors found that ERP could enhance the ERP adopter’s organizational capability and supplier capability. Originality/value – This study is one of a few attempts to investigate the role of ERP in the supply chain and identify important determinants influencing the ERP adoption and implementation decisions. Especially, in contrast with the previous literature which often gauged the benefits of ERP from an ERP adopter’s standpoint, this paper is one of the few to assess the benefits of ERP from the ERP adopter’s supply chain partners standpoints. Also, it is one of the first to assess the impact of ERP on supplier capability, organizational capability, and customer value.

Measuring the benefits of ERP on supply management maturity model: a “big data” method

Purpose – The purpose of this paper is to investigate the effects of implementing enterprise resource planning (ERP) systems and the selection of ERP vendors on supply management performance for Fortune 500. Design/methodology/approach – The paper adopts the supply chain maturity model adopted by Gupta and Handfield (2011) and used publicly available information such as articles, research report, newspapers to develop objective maturity ratings for four key indicators – strategic sourcing, category management, and supplier relationship management. Findings – The analysis results suggest ERP users are more mature than non-ERP users in three key indicators: strategic sourcing, category management, and supplier relationship management. Moreover, SAP ERP users are more mature than non-ERP users in strategic sourcing, category management, and supplier relationship management. Research limitations/implications – This study does not account for the longitudinal performance of ERP systems, nor does it account for differences between organizational scope of ERP deployment, global reach, or implementation duration. The authors also did not include other measures of supply chain performance outside of the procurement area. These factors could provide further insights to supply chain performance, and will be an interesting topic for future research. Practical implications – This study provides an extensive analysis of how the deployment of ERP systems and the selection of ERP vendors can benefit a company’s supply chain performance. This information is valuable for companies that are considering adapting an ERP system. Originality/value – This paper uses innovative an maturity assessment rating approach with publicly available resources to measure supply management performance across different companies. This method is novel and provides valuable insights to how ERP systems and their vendors’ impact supply chain management performance.