Effectiveness Of Enterprise Resource Planning Research Articles

Technology factors and ERP system efficiency in the Jordanian industrial firms: does company size matter?

The study was structured to investigate the impact of technological factors on the effectiveness of enterprise resource planning (ERP) in Jordanian industrial firms, using a descriptive-analytical approach. This study also examines company size as a moderator variable, which has been measured using the logarithm of total assets extracted from each firm’s annual report. The study’s target population consisted of all Jordanian industrial firms listed on the Amman Stock Exchange, totaling 55 firms. Managers participated as respondents, with 220 questionnaires distributed electronically, averaging four questionnaires per company. After data collection, 92 valid questionnaires were used for statistical analysis. The findings indicate a significant and positive relationship between technological factors (such as ease of use, perceived usefulness, and digital proficiency) and ERP system effectiveness in Jordanian industrial firms. However, the study revealed that trust, as one of the technological factors, did not significantly impact ERP system efficiency. Additionally, it was found that the moderating role of company size moderates positively the relationship between two technological factors (i.e., perceived usefulness and digital proficiency), and ERP system efficiency. The research suggests that industrial firms in Jordan should take into account technological factors, including factors like ease of use, perceived usefulness, and digital proficiency, to remain current with advancements that can improve the efficiency of ERP systems. This is important due to the positive influence it can have on the operational effectiveness of Jordanian industrial companies, aiding them in their planning and decision-making processes.

Effectiveness of Enterprise Resource Planning on the Performance Quality of Food Company Employees in West Java

Implementing Enterprise Resources Planning (ERP) in the company is part of the company's internal business strengthening strategy to increase strong competitiveness and manage the company professionally. However, implementing ERP systems in some cases is considered a failure because the company does not achieve the goals set. This study aims to determine whether the implementation of the system in the company has a positive effect on employee performance. The models used to evaluate the impact of ERP system implementation are work quantity, work quality, work knowledge, collaborative creativity, dependability, initiative, and personal quality. The method used in this research is a descriptive, analytic and evaluative qualitative method by analyzing the impact of ERP system implementation on user performance components in food companies in West Java. The results obtained are that ERP implementation positively affects work quantity, work quality, knowledge, collaboration, creativity, dependence, initiative, and personal quality.

The intermediary role of organizational performance as a driver of total quality management and enterprise resource planning towards achieving organizational excellence: the moderating role of demographic factors

PurposeThe study's goal is to look at how total quality management (TQM), enterprise resource planning (ERP) and organizational performance interact to affect organizational excellence.Design/methodology/approachA survey questionnaire research design was used to achieve the goal of this study through the hypothesized model. The information was obtained from a Dubai police organization. Out of 550 questionnaires, 320 questionnaires were returned. To analyze the data for measurement and structural models, the structural equation modeling (SEM) partial least squares method was used.FindingsThe statistical results confirmed the positive and significant effects of TQM and ERP on organizational performance. The mediation role of organizational performance between TQM, ERP and organizational excellence also was confirmed.Practical implicationsMore details and significant consequences have been explored in this study. The findings have a number of practical implications. The findings also assist practitioners and managers in making the best decisions while incorporating TQM, ERP and excellence practices in their organizations. Organizations will achieve optimum strong excellence and stay competitive in a competitive market by integrating the effects of TQM, ERP and organizational performance.Originality/valueThis study is another empirical investigation into the combined impact of TQM, ERP and performance on excellence relationships. In other words, the current study is one of the few that investigates the mediating role of organizational performance as a variable alongside organizational excellence as the ultimate variable in developing countries, specifically in the United Arab Emirates (UAE).

Integration of TQM and ERP to enhance organizational performance and excellence: empirical evidence from public sector using SEM

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.

ERP-based lean systems and their impact on performance: the system dynamics approach for a maturity model

There are continuing debates on the effects of enterprise resource planning (ERP) and its combination with lean on manufacturing performance. It is suggested to integrate lean production principles into ERP systems; however, research exploring this area in the literature is limited, especially quantitative studies. This study fills the knowledge gap by quantitatively investigating the correlation between ERP-based lean systems and performance outcomes, using a system dynamics approach. We model a manufacturing system, focusing on the effects of ERP and lean inputs on customers' order fulfilment. Different scenarios of ERP systems supporting lean practices are illustrated through a capability maturity model. Actual performance data is collected to validate the developed model. The results show that ERP is a hindrance on lean at the low maturity level. The influence on ERP only occurs with the mediator role of lean. ERP-based lean systems bring substantial benefits to organisations. Therefore, lean practices are a foundation upon which the full benefit of ERP can be received.

ERP-based Lean systems and their impact on performance: The system dynamics approach for a maturity model

There are continuing debates on the effects of enterprise resource planning (ERP) and its combination with lean on manufacturing performance. It is suggested to integrate lean production principles into ERP systems; however, research exploring this area in the literature is limited, especially quantitative studies. This study fills the knowledge gap by quantitatively investigating the correlation between ERP-based lean systems and performance outcomes, using a system dynamics approach. We model a manufacturing system, focusing on the effects of ERP and lean inputs on customers' order fulfilment. Different scenarios of ERP systems supporting lean practices are illustrated through a capability maturity model. Actual performance data is collected to validate the developed model. The results show that ERP is a hindrance on lean at the low maturity level. The influence on ERP only occurs with the mediator role of lean. ERP-based lean systems bring substantial benefits to organisations. Therefore, lean practices are a foundation upon which the full benefit of ERP can be received.

ERP systems and management accounting

PurposeThis paper aims to show how our understanding of the effects of enterprise resource planning (ERP) systems on management accounting are influenced through “nudging” by researchers in their preamble before interviews begin.Design/methodology/approachThere were two groups of comparable respondents. Each group received a different preamble to the same questions. The differences in group responses were analyzed.FindingsWhen the impact of ERP implementation on the physical, transactional and information flows within the firm were nudged, the responses focused on how the chart of accounts had to be expanded to account for the additional data introduced by transaction processing. When the IT and ERP system knowledge and skills were nudged, the responses tended to emphasize analyses or the use of new information through the use of drill down functionality. This research provides new insights and contributions to understanding how nudging affects or directs respondent assessments of the impact of ERP systems on management accounting.Research limitations/implicationsThe research is limited by the relatively small samples and by the fact that these were different research projects.Practical implicationsNudging has an obvious impact on research that should not be ignored.Social implicationsUnintentional nudging should be considered with all research projects.Originality/valueThis paper makes explicit that nudging occurs in research whether intentional or unintentional.

An integrated framework for ERP system implementation

PurposeThe purpose of this paper is to propose an alternative integrated approach based on the stage-gate method to implement enterprise resource planning (ERP) systems which will enhance the effectiveness of ERP projects.Design/methodology/approachA literature review was conducted on ERP system implementation and its effectiveness. The need for improving implementation approaches and methodologies was examined. Based on the insights gained, a conceptual framework for ERP system implementation is presented by combining the state-gate approach with the pre-implementation roadmap.FindingsThe proposed framework aims to enhance the overall ERP implementation outcomes, ensuring critical success factors and eliminating common causes of failures. A pre-implementation roadmap is identified as a key element for eliminating many causes of failure including lack of organisations’ readiness for ERP. The post-implementation stage can be used for further improvements to the system through internal research and development.Research limitations/implicationsThe development of the framework is an attempt to contribute to improving ERP implementation. This research is expected to motivate researchers to work in this area, and it will be beneficial to practicing managers in the identification of opportunities for improvements in ERP systems. Case studies will be valuable to refine and validate the proposed model.Originality/valueThis paper explores research in a needy area and offers a framework to help researchers and practitioners in improving ERP implementation. This framework is expected to reduce the implementation project duration, strengthen critical success factors and minimise common problems of ERP implementation projects.

Enterprise Resource Planning A Ternary Role of CMA as an Analyst, Architect and Appraiser

This article is aimed at highlighting the role of a Cost and Management Accountant (CMA) in the latest ERP implementations. The ERP implementation scenarios have entered the next generation with various options that can be leveraged by the organization with an extensive Cost Benefit Analysis by a CMA. With the advent of cloud computing, Software as a Service (SaaS) Small and Medium-sized Enterprises (SMEs) can now afford an almost risk free ERP to scale up their operations. There have been number of ERP systems that are available based on the maturity of the organizations.An ERP is a single application single database across the organization for all the business process management. Over the time, it has evolved further to accommodate the extended needs of an organization and the deployment models have radically changed. CMAs with experience at various levels have much to offer for the success of an ERP implementation. The success or otherwise of Enterprise Resource Planning largely depends on various factors viz., top Management’s support, selection of a suitable ERP system, role of the implementation partners, end-user training and involvement, quality of hardware deployed etc. These key success factors determine the effectiveness of ERP and will have significant effect on Total Cost of Ownership (TCO) or Return on Investment (ROI) of an ERP Project. Hence, CMA’s role in selection and implementation of an ERP is one of the most important key success factors. While making Enterprise Resource Planning (ERP) successful and to ensure its effective ness CMAs role in the present context can be described as s Computerized Management Accountant (CMA).

ERP-PCS Connection in the Cosmetics Industry: Opportunities to Increase Energy Efficiency

This paper emphasizes the prolific effects of Enterprise Resource Planning (ERP) implementation in a large cosmetics company by means of increased technological discipline, and reduced consumption of materials, packaging and energy, while establishing an efficient organization of production, in direct terms of productive staff and capacity utilization. The authors also present in this article their own plans for a promising Enterprise Resource Planning Process Control Systems (ERP-PCS) connection. PCS systems log valuable information on technology and business processes (utilization of raw materials, wrappings, accomplished production, etc.), founded on data monitoring of the production automation equipment: electronic flow meters, electronic scales, sensors and transducers, digital countdown and supplementary specific devices. This connection, together with ERP systems' dedicated modules, could determine real time data retrieval on materials, packaging, energy consumption and outputs, thus providing valuable information to the company managers for resourceful decision making processes.

(IN)EFFECTIVENESS OF ERP AT PRISTINE PACKAGING

Enterprise resource planning (ERP) software integrates all functional areas of an organization. It is a business process management software that provides an integrated view of core business processes using common databases. It enables real-time availability of information related to entire organization thus paving the way for faster and scientific decisions. However, ERP implementation and subsequent upgradation necessitate a significant quantum of resources which can take place only with sincere commitment from top management. Researches prove that more than 50% ERP implementation do not succeed due to various reasons i.e. people, process and technological. In majority of such failures, people and process issues cause more failure than technological reasons. Case '(In) Effectiveness of ERP at Pristine Packaging' highlights one such failed (at least partially) implementation in a medium scale manufacturing firm. Deeper analysis of case substantiates the above conclusion that predominant factors for ERP failure are people and processes. Case also raises questions as to what business and technical strategies can be adopted by the management of PPIP at this stage when new ERP i.e. Microsoft Dynamics exhibited only 20% improvement over the previous ERP - Microsoft Navision.

Evaluating Impact of Management Accounting Performance on ERP System's Effectiveness : A Case Study of Insurance Company of Atiyehsazan Hafez - Iran

The objective of this study is evaluating impact of management accounting performance on ERP system’s effectiveness (case study: Insurance Company of Atiyehsazan Hafez -Iran). Method of this study in term of objective is applied and in term of implementation is a description of causal type and finally method of data collecting is field. Questionnaire is considered as tools of data collection. Branches of Insurance Company of Atiyehsazan Hafez that are 36 branches are considered as statistical population. The number of samples analyzed has been 32 branches. Sampling method in this study has been non-probability sampling and convenience. Descriptive and inferential statistical methods are used to analyze data. In descriptive method is used indicators of such as mean, frequency and standard deviation and to test their hypotheses in inferential statistic are used regression method. The results of hypotheses test showed that components of performance management accounting (quality of management accounting reports, the adoption of new methods of management accounting, improving the decision-making process, the quality of management accounting information) have an impact on the effectiveness of enterprise resource planning but the responsibility of management accountants does not affect the effectiveness of enterprise resource planning.

The effects of ERP systems implementation on management accounting in Iranian organizations

Purpose – The aim of this paper is to study the effects of enterprise resource planning (ERP) on management accounting in Iranian organizations. Preparing and offering different reports and budgets remain important activities for accountants, and directly implementing ERP systems improves the quality of these reports through real-time data transfer. Design/methodology/approach – The research methods used in this paper are descriptive surveys with questionnaires and interviews as the main data collection tools. Statistical population comprises every organization which has implemented an ERP system with financial/accounting modules. The participating 12 organizations were selected based on consultation with experts, and a seven-item Likert questionnaire was prepared and its validity approved and used to collect data. The t-test and Friedman test were applied to assess the hypotheses and rank parameters. Findings – Results revealed that the highest effects of implementing an ERP in surveyed Iranian organizations are improving standard levels and the quality of reports, creating more organizational integration and empowering personnel. Research limitations/implications – As the implementation of ERP in Iran is still in its initial phases and the sample is restricted to only four organizations, when considering the generalizability of the obtained results, caution should be taken. Originality/value – This research is among the few studies on the effects of ERP implementation on accounting management departments, particularly in the context of Iran.

Enterprise resource planning, operations and management

PurposeThis research aims to explore the enabling and constraining effects of enterprise resource planning (ERP) systems and speculate on how these can be linked to the four generic roles of operations management (OM) proposed by Slack et al.Design/methodology/approachThis research understands ERP as boundary objects characterised by modularity, abstraction, accommodation, and standardization. An in‐depth cross‐disciplinary literature review and role synthesis is conducted.FindingsFour enabling and three constraining effects of ERP are deduced from existing literature. ERP and OM are linked conceptually. Based on the identified effects of ERP, the paper speculates on the managerial tasks of the production and operations manager (POM) in an ERP environment and lists a set of central concerns of potential relevance to POM and to future research.Research limitations/implicationsThe identified roles of ERP and their implications could be empirically tested using case based and survey research.Practical implicationsThe results provide insights into how ERP has multiple and parallel roles, and how these roles are relevant to the function of OM. Such knowledge is valuable for practicing POMs in managing the implementation and design of ERP to support the different domains of OM.Originality/valueCurrent studies of the effects of ERP and their link to the practice of OM tend to focus on one or a few roles of the emerging system. Such studies do not properly take into account the modularised and pluralistic nature of ERP. This research provides a platform from where future research on the effects, managerial dilemmas and implications of ERP can be reconciled across research communities.

Enterprise Resource Planning (ERP) – an Innovative Key for the Success of an Organization

Enterprise Resource Planning is one of the fastest growing Information Communication Technology (ICT) driven philosophies, which helps the manager to take better decisions. The business environment is continuously changing at a faster pace, which makes the companies to revitalize, reinvent and resize by using open innovative efforts. Enterprises are continuously struggling to improve themselves in the areas of quality, time to market, customer satisfaction and profitability. Today’s plan can make the organization as tomorrow’s winner who will embrace open innovative technology like Enterprise Resource Planning. The ERP software fulfills these needs. This paper discusses about the new open innovative technology-Enterprise Resource Planning. For this purpose case study is done by selecting some organizations, which have implemented these ERP packages. The main research objective is to identify the factors which contribute towards effectiveness of ERP and its application to enhance the managerial effectiveness based on factors like reducing cycle time, faster information processing, improving financial management, etc.

Exploring An Alternative Method of Evaluating the Effects of Erp: A Multiple Case Study

Previous research has already established that compared to other types of investments, information technology (IT) investments are insufficiently or not at all evaluated. This can be partly explained by the lack of adequate IT evaluation methods and tools. In the case of enterprise resource planning (ERP) systems whose effects on organizational processes and performance are intrinsically profound and wide-ranging compared to those of traditional IT limited to some spheres of organization, evaluation activities may be an issue of great concern. This study thus aims to propose and test an alternative evaluation method adaptable to the organizational context, making it possible to measure the contribution of an ERP system to organizational performance in all its aspects. Combining a process-based model and a scorecard model, the proposed method was first designed from a review of information systems evaluation literature. It has then been validated and refined through a multi-case study of manufacturing firms: an in-depth pilot case study was conducted, and thereafter the study was replicated on two other cases. Results show that the method proposed here enables organizations to determine the extent to which the firm's operational and overall performance has been impacted by the adoption and use of ERP systems, through the automational, informational, and transformational effects of ERP on their business processes. From a practical point of view, three contributions must be mentioned: the proposed method allows for a strong contextualization of its application, it is action-oriented, and it allows comparison across organizations even though organizational contexts may totally differ.