Enterprise Resource Planning Performance Research Articles

ENTERPRISE RESOURCE PLANNING AND REAL EARNINGS MANAGEMENT: A STUDY IN INDONESIA

This research objective is to examine the effect of enterprise resource planning (ERP) on real earnings management (REM). The sample are 590 manufacturing firm-years listed in the Indonesian Stock Exchange 2017-2021. REM is proxied by three abnormal activities: over-sales, overproduction, and discretionary expense cutting. With panel data regression analysis, it is found that ERP implementation has a negatively significant effect on REM. Further, the ERP system implementation role to reduce REM is more pronounced for overproduction and discretionary expenses activities, and for suspect firms that beat earnings targets. ERP systems play an important role in reducing information asymmetry and effectively constraining REM. This research gives implications to firm management to make decisions about ERP an investment or to increase implemented ERP performance so that REM can be reduced. This research strengthens previous findings about ERP on REM by involving the ERP non-implementer as control group firms, using alternative ERP implementation period to control its effectiveness, and also examining REM suspect and non-suspect firms, since previous researches are lack of it.JEL: M410, M400, M21.

Semantic-Based Multi-Objective Optimization for QoS and Energy Efficiency in IoT, Fog, and Cloud ERP Using Dynamic Cooperative NSGA-II

Regarding enterprise service management, optimizing business processes must achieve a balance between several service quality factors such as speed, flexibility, and cost. Recent advances in industrial wireless technology and the Internet of Things (IoT) have brought about a paradigm shift in smart applications, such as manufacturing, predictive maintenance, smart logistics, and energy networks. This has been assisted by smart devices and intelligent machines that aim to leverage flexible smart Enterprise Resource Planning (ERP) regarding all the needs of the company. Many emerging research approaches are still in progress with the view to composing IoT and Cloud services for meeting the expectation of companies. Many of these approaches use ontologies and metaheuristics to optimize service quality of composite IoT and Cloud services. These approaches lack responsiveness to changing customer needs as well as changes in the power capacity of IoT devices. This means that optimization approaches need an effective adaptive strategy that replaces one or more services with another at runtime, which improves system performance and reduces energy consumption. The idea is to have a system that optimizes the selection and composition of services to meet both service quality and energy saving by constantly reacting to context changes. In this paper, we present a semantic dynamic cooperative service selection and composition approach while maximizing customer non-functional needs and quickly selecting the relevant service drive with energy saving. Particularly, we introduce a new QoS energy violation degree with a cooperative energy-saving mechanism to ensure application durability while different IoT devices are run-out of energy. We conduct experiments on a real business process of the company SETIF IRIS using different cooperative strategies. Experimental results showed that the smart ERP system with the proposed approach achieved optimized ERP performance in terms of average service quality and average energy consumption ratio equal to 0.985 and 0.057, respectively, in all simulated configurations compared to ring and maser/slave methods.

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.

Increasing Operational Performance through ERP Performance in Oil Palm Plantation Industry Indonesia

Digital transformation is needed in palm oil companies in Indonesia to achieve maximum operational performance. Enterprise Resource Planning (ERP) can help improve organizational efficiency and productivity through organizational trust, transformational leadership, and mobility strategies, playing an effective role in improving operational performance. This study aims to collect data through a survey of 79 oil palm plantation companies that use ERP to improve their operational performance in Indonesia. Partial Least Square Structural Equation Model (SEM–PLS) is an analytical method that can be applied through the SmartPLS 3.0 software used in this study. This study found that ERP implementation, organizational trust, transformational leadership and mobility strategies have a major role in influencing operational performance. Thus, ERP performance can be enhanced by organizational trust, transformational leadership, and mobility strategies. Operational performance can be achieved through continuous and reliable improvement.
 
 Keywords: Performance, ERP, Mobility, Trust, Transformational Leadership, Palm Oil

Organizational Performance: The Role of Enterprise Resource Planning and Supply Chain Management

<p>Technological advances require companies to follow and adapt to technological developments and require companies to move with existing changes. Companies need a strategy to have a competitive advantage and improve organizational performance in dealing with these conditions. The study empirically tested the effect of mediating supply chain management (SCM) implementation on the relationship between Organizational performance and enterprise resource planning (ERP). The sample of this study were employees of PT. Semen Padang is involved in the supply chain management process and runs an enterprise resource planning system with 100 employees. The results of data processing using PLS-SEM showed a positive and significant effect in the direct relationship between ERP to SCM and SCM to performance. Furthermore, SCM mediates the relationship between ERP and company performance.</p>

Cloud Computing, Big Data, and Blockchain Technology Adoption in ERP Implementation Methodology

The aim of the paper is to present the new factors of ERP (Enterprise Resource Planning system) implementation related to the usage of cloud-based and blockchain information technology and to discover potential possibilities of using cloud computing, big data, and blockchain technologies in the methodology of ERP implementation. The article covers the characteristics of the current implementation methodologies and also discusses how these technologies can be adopted in the implementation process. During the study, a literature review was carried out and survey-based interviews with project managers were performed. Previous studies examined in the literature review have some limitations. Most of them are focused on ERP performance in the cloud or measure success factors of ERP implementation. A research gap exists regarding the impact of technologies in the implementation process and the results of this process. The research shed some light on cloud computing and blockchain in ERP implementation. The conclusions are as follows: (1) Some methods of sustainable methods of ERP implementation with the use of cloud technologies, blockchain, and big data have been examined in research studies, but there is still a lack of publications with in-depth analyses of the impact of blockchain on ERP implementation success. (2) The practitioners recommended the new technologies based on cloud computing and big data in the process of ERP implementation, and more knowledge about blockchain would have a positive impact on the success of sustainable ERP implementation as well as on the willingness to adopt the new technologies.

Evaluating the Enterprise Resource Planning (ERP) System of a Bread Manufacturing Organisation from the Perspectives of Stakeholders

Enterprise Resource Planning (ERP) framework integration is an important and foundational business process preparation and knowledgesharing process. The ERP framework has in the past decade been regarded as a vital enabler for organisational performance and functions as an integral feature in today's diverse and competitive market climate. It normally needs considerable feedback in terms of commitment, time, and resources to incorporate an ERP method.In recent research, numerous contributing factors to the ERP's performance or failure were more specifically demonstrated; still, only the ERP's contributions in developed countries were illuminated. Moreover, many developing countries are interested in ERP deployment in their organizations.As Microsoft Dynamics 365 has not been thoroughly researched to date, this study seeks to penetrate an unexplored territory for Malaysia by concentrating on Malaysia-specific results. The importance of this analysis is a detailed review of the spectrum of Microsoft Dynamics 365 operations in supply chain management. Additionally, this analysis aims to help specific sectors and enterprises further grasp the value of Microsoft Dynamics 365 as an enterprise resource planning (ERP) solution. A reasonable amount of evidence would be supplied that addresses the feasibility, usefulness, and practicality of Microsoft Dynamics 365.This research aimed to discover variables that impact ERP users in an ERP environment, with the intention of gaining a more detailed understanding of the end-user ERP output through a qualitative case study. It is important to recognise all of the influences on the stakeholders in the ERP management and in this study, the Microsoft Dynamic 365 (D365) was the target system. The study utilized a qualitative research framework that combines computational techniques and mathematical estimation for data collection and interpretation. The ERP data obtained are the data required for answering the study questions.The findings of this study show the importance of stakeholders and ERP Framework as well as ERP system such as D365 in promoting individual ERP successes. The researcher also looked at the views of stakeholders on the impact of system quality. This relationship was investigated from the viewpoints of the end-users, stakeholders. Understanding the relative value of the information system factors places an emphasis on the vital performance factors perceived by end consumers by organisations and suppliers. Ingeneral, the conclusion from the analysis is that the management of the supply chain in extended companies should not expect too much of an ERP system as eventually still needs various customizationwithin certain industries.This study has helped to reduce the discrepancy in the theory of stakeholders regarding the criteria for the selection of systems and methods for bread production in Malaysia, although some of the criteria and methods provided for in the theories might not be prominent in the real world. Practitioners tend to respect and comply with the requirements of the organisation over the more sophisticated ERP scheme.

Impact of Enterprise Resource Planning (ERP) Implementation on Performance of an Education Enterprise: A Structural Equation Modeling (SEM)

Abstract This study focused on to examine whether the implementation of Enterprise Resource Planning (ERP) in a Peruvian education enterprise impacts on process management of enterprise which in turn enhance the performance of employees. Also, it is analyzed the impact of technology literacy on process management. Empirical data were collected using a survey questionnaire which was distributed to 142 ERP users in a Peruvian education enterprise to test the relationships among variables. Using Partial Least Squares Structural Equation Modeling (PLS-SEM) was analyzed the validity of construct and discriminant and, internal consistency by the composite reliability. ERP implementation has a positive impact in the performance of employees. The process management had a mediation effect between ERP implementation and performance. Also, technology literacy had an impact on performance. Outcomes provide further support for the validity of the model in Peru and globally. Thus, business owner/managers can use the model to help improve their options of success. Other stakeholders, investors and institutions that provide them with investment can also benefit from this model. The information also provides information to ERP implementation agents to support small business development. This is the first study reports the mediating effect of business strategy and organizational capabilities on the relationship between ERP implementation and firm performance. The outcomes of this study can be used to evaluate success of the ERP implementation evaluating preliminary the basic level of technology literacy.

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.

The effect of enterprise resource planning on the organizational performance of organizations through HRM practices An Applied Study on the Reinforcing Steel Sector Companies in Egypt

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.

Analysis of the Role of IT Governance on ERP Systems Implementation

An ERP (enterprise resource planning) is an information system that makes it possible to manage and monitor on a daily basis all the information and operational services of a company. It is able to effectively reduce the cost of products, improve customer service experience, and increase business competitiveness. However, the implementation rate of the ERP system is much lower than originally planned, and many companies have not achieved the intended objectives. This situation is due to many factors (high implementation costs, technical complexity, lack of well-trained employees, lack of incentive mechanisms, etc.), but the key element is the separation of relations between the ERP system and enterprise strategy, organizational structure, and business processes. The purpose of this paper is to examine the role of IT governance in achieving ERP performance with a focus on the implementation phase.

Measuring Performance Through Enterprise Resource Planning System Implementation

The evaluation of enterprise resource planning (ERP) systems for performance enhancement in public sector organizations is a crucial concept due to its different nature from private concerns. The objectives of this paper are to explore the relationship of the common performance enhancement factors in the context of the gap between the real and ideal ERP performance of public sector organizations in Pakistan and to explore the overall difference between the ideal and real ERP performance in those organizations to provide some guidelines to the public sector in Pakistan. The difference between the ideal, i.e., the expectations of the organization before implementing ERP, and the real performance of ERP in Pakistani public sector organizations is the main source of identifying the impact of common performance indicators on the ERP overall performance. Different researches have been conducted to find the critical success factors in various areas of ERP, like strategic, managerial, technical, and contextual factors, but the impact of the common factors that affect the ERP performance as a whole has never been investigated. Little research has been conducted on the performance factors, especially in the large-scale public sector organizations in developing countries like Pakistan. We performed data analysis considering descriptive statistics, reliability analysis, correlation analysis both in ideal and existing situations, and paired sample t-test. We found, based on the paired sample t-test, that there is no gap between the ideal and existing ERP systems for time and database variables, but there is a gap between the ideal and existing ERP systems in functionality, user-friendliness, flexibility, reliability, service, vendor support, and the overall performance of the ERP system deployed in the government sector of Pakistan.

Analyzing the Business Performance of An Erp Systems in Automotive Ancillary Industries-Balanced Scorecard Perspective

This study aims to analyze the business performance of Enterprise Resource Planning (ERP) system in Automotive Ancillary Industries using four interrelated dimensions of performance measurement framework Balanced Scorecard (BSC); Innovation and Learning, Internal, Customer and Financial perspective. This analysis was carried out based on survey questionnaires with 281 stakeholders who are familiar with ERP system and results were presents as evidence. The analysis result shows that uses of ERP system resulted in a positive in financial performance of the organization, deliver best services to their customer, increases the overall internal performance of the firm increases and enhances firm loyalty and simplify the complex work. Friedman’s ranking analysis and correlation analysis were applied, and detailed analysis was submitted in this study. The results from the survey indicate that integrated software system such as ERP need to be implemented in Automotive Ancillary Industries to improve the business performance in various dimension i.e. Innovation and Learning, Internal, Customer and Financial perspective.

Role of cloud ERP and big data on firm performance: a dynamic capability view theory perspective

PurposeTechnological developments have made it possible for organizations to use enterprise resource planning (ERP) services without indulging in heavy investments like IT infrastructure, trained manpower for implementation and maintenance and updating the systems regularly to maintain business competitiveness. Plug and play model offered by cloud ERP has led to a constant creation of large data sets which are structured, semi-structured and unstructured by nature. Thus, there has been a need to analyze such complex data sets and the purpose of this paper is to focus on how cloud ERP and big data predictive analytics (BDPA) will impact the performance of a firm.Design/methodology/approachA dynamic capability view (DCV) theory-based model was developed and the authors have collected data by using an online questionnaire from India. Thereafter, the authors have analyzed it by employing structural equation modeling.FindingsSEM analysis of 231 respondents showcases that the use of DCV theory to define the relationships of cloud ERP and BDPA has been the right move. Out of the 13 hypotheses empirically tested, only 7 hypotheses were supported by the data.Research limitations/implicationsThe study showcases cross-sectional data from India. It would be interesting for this study to see if the country-level differences would influence these relationships between cloud ERP and financial performance, BDPA and financial performance and cloud ERP and BDPA.Originality/valueThis study empirically tests the relationship of cloud ERP and BDPA through a model based on DCV theory.

Role of cloud ERP on the performance of an organization

PurposeCloud-based enterprise resource planning (ERP) enables an organization to pay for the services they need and removes the need to maintain information technology infrastructure. The purpose of this paper is to empirically test the role of cloud-based ERP services on the performance of an organization. Here, the performance is categorized as supply chain performance and organizational performance that comprises of financial performance and marketing performance. Contingent resource-based view (RBV) theory was used to develop a theoretical framework in which supply base complexity (SBC) acts as a moderating variable on the relationship between cloud ERP and the performance.Design/methodology/approachContingent RBV theory is used to explain the relationship between all identified variables in this paper. Partial least squares (PLS) based on structural equation modeling (SEM) is used to empirically test our theoretical framework.FindingsThe PLS-SEM analysis of 154 respondents supports the contingent RBV theory. Six hypotheses – out of the eight hypotheses formulated in this paper – are supported by data.Research limitations/implicationsGiven this study was conducted in India where the potential of cloud ERP has not been fully implemented yet, the results may reflect more of perceived usefulness of this technology. The authors have attempted to understand the effect of SBC as a moderator in the relationship between cloud ERP and organizational performance which may not be the only moderator affecting this relationship among other potential moderators.Originality/valueThis paper empirically validates the theoretical framework based on the contingent RBV theory as it mitigates the static nature of the resource-based view approach suggested in the seminal article of Barney (1991).

Knowledge management and ERP: Complementary or contradictory?

This research aims at deepening the understanding of the effects of information systems on supply chain operations, and to find the level and direction of the relationship between Enterprise Resource Planning (ERP) and Knowledge Management (KM) in the context of operational and financial performance. Essentially, this study emphasizes the explanation of the complementary relationship between ERP and KM. Therefore, the mediating effect of KM is also analyzed. Using a survey method, 163 responses are collected from Turkish manufacturing companies which operate in a variety of industries. A structural equation modelling (SEM) is used to test both the reliability and validity of measurement and the structural path model. The results show that ERP has no significantly positive effect on operational performance, but it is a precedent of KM. Moreover, results also show that KM affects operational performance positively and it has a mediating effect for the relationship between ERP and operational performance. Lastly, the path analysis shows that operational performance is positively associated with financial performance.

The impact of ISP, BPR, and customization on ERP performance in manufacturing SMEs of Korea

Purpose This paper aims to assess how enterprise resource planning (ERP) performance of Korean small and medium enterprises in manufacturing differs according to different levels of business process reengineering (BPR), information strategic planning (ISP) and ERP customization. Design/methodology/approach A questionnaire survey was carried out in this research. Responses from 96 small and medium manufacturing companies that have adopted ERP systems were analyzed. Findings The results of this study suggest that ISP and BPR implementation are positively correlated to ERP performance. Originality/value While consulting and customization costs have positive impacts on ERP performance, the level of customization does not influence performance. As one of the pioneering studies that investigate the impact of BPR, ISP and ERP customization on small and medium manufacturing companies, this research contributes to both theory and practice.

The mediating role of TQM and organizational excellence, and the moderating effect of entrepreneurial organizational culture on the relationship between ERP and organizational performance

Purpose The purpose of this paper is to investigate the relationship between enterprise resource planning (ERP) and organizational performance through examining the mediating effect of total quality management (TQM) and organizational excellence and the moderating effect of entrepreneurial organizational culture (EOC). Design/methodology/approach A survey questionnaire was used to collect the data from Dubai Police Departments. Out of the questionnaires distributed, 320 completed usable were returned and used for the analysis which employed partial least squares structural equation modelling methodology. Findings The results showed that there are positive and significant relationships between ERP, organizational excellence, TQM, and organizational performance. In addition, TQM was found to partially mediate the effect of ERP on organizational performance, where organizational excellence was found to fully mediate the effect on the same relationship. However, the moderating role of EOC on the ERP, TQM, and organizational performance was not confirmed. Practical implications Several practical implications have been gained from this study. It will increase the awareness of managers and decision makers to consider the constructs test to enhance the overall organizational performance in their organizations. The role of TQM and organizational excellence to facilitate the implementation of ERP is very critical. In addition, this research will increase the awareness of different stakeholders such as customers, supplier, and shareholders to integrate the proposed constructs examined to enhance the overall organizational performance. Originality/value The current study is one of the few or the only empirical study that examines the joint effect of ERP, TQM, organizational excellence, and EOC on organizational performance.

Developing and Assessing Erp Competencies: Basic and Complex Knowledge

This research studies the influence of individual knowledge mastery of competency task performance of Enterprise Resource Planning (ERP) learners. The research design involved the assessment of participants' ERP competency, each of whom participated in four games of a computer-based simulation, ERPsim. ERP knowledge was assessed using a validated questionnaire, which included questions with different complexity levels. Results indicate that although reported student grade point average is not a predictor of ERP competency, ERP knowledge mastery (particularly complex knowledge) does predict ERP competence. While mastering basic ERP knowledge does not predict the competency of the participants, these results can provide useful guidelines with respect to teaching and assessment practices, as well as the development of ERP curricula. To effectively prepare learners to be able to perform in authentic learning contexts, instructors could emphasize the mastery of complex knowledge and consequently use complex knowledge test questions as a component of the instruction.

A study of enterprise resource planning (ERP) system performance measurement using the quantitative balanced scorecard approach

Enterprise resource planning (ERP) systems have been used in integrating information and accelerating its distribution across functions and departments with the aim to increase organizations’ operational performance. Thus, it is worth measuring ERP system performance based on its impact to critical performance of an organization: this requires a systematic method that bridges ERP performance measurement and key organizational performance. The hierarchical balanced scorecard (HBSC) model with respect to multiple criteria decision-making is such a systematic approach to ERP performance measurement. An ERP evaluation framework that integrates the balanced scorecard dimensions, linguistic variables, and non-additive fuzzy integral provides an objective approach to measuring both the performance level of the ERP system and its contribution to the strategic objectives of high-tech firms. Taking Taiwan’s high-tech firms as an example, this study demonstrates the effectiveness of this integrated approach to measure the performance of ERP systems at the post-implementation stage under evaluators’ subjective, uncertainty, and vagueness judgments.