Use Of Enterprise Resource Planning Systems Research Articles

Intended and Unintended Consequences of ERP System Implementation

SYNOPSIS We provide evidence that enterprise resource planning (ERP) systems are potentially beneficial to firm decision-making but can also have unintended effects. The tax function is one of the largest consumers of data within a firm, with over 50 percent of time spent gathering tax data and less than 30 percent of time spent on strategic data analysis (PricewaterhouseCoopers (PwC) 2015). Difficulties in getting high-quality, timely tax information could negatively impact a firm’s tax compliance activities and leave few resources for tax planning. Following the absorptive capacity theory, we predict and find that ERP systems are associated with a greater degree of tax planning post-adoption, resulting in lower tax burdens. However, we also note increased firm discretion in tax planning, resulting in a larger amount of aggressive tax positions. Practically, our findings have important implications for the use of ERP systems both within the tax function and across other decision-making areas. JEL Classifications: O33; H26; D83.

Understanding continuance intention of enterprise resource planning (ERP): TOE, TAM, and IS success model

This paper aims to identify the key factors influencing the intention to continue using enterprise resource planning (ERP) systems. Extending the Technology-Organization-Environment framework, the model integrates variables from both the Technology Acceptance Model and the Information Systems Success Model. We employed Partial Least Squares Structural Equation Modeling to analyze empirical data collected from 237 participants who use ERP systems in their workplaces. Our findings suggest that perceived usefulness has a positive impact on the intention to continue using ERP. Both system quality and information quality are pivotal in shaping perceived usefulness and perceived ease of use. Additionally, we found that top management support is a crucial determinant of continuance intention. The integrated model combines technological factors, organizational context, and environmental components to explain the ongoing use of ERP systems. This research enriches the existing literature on information systems, offering academics and managers deeper insights into the mechanisms driving continued ERP usage.

ERP System for Construction Site

Currently, enterprise resource planning (ERP) has been recognized as a foundation for the merging of organization-wide data systems. ERP systems connect all aspects of an organization's business, including accounting, finance, human resources, production, and distribution. They also connect the company to its consumers and suppliers across the many phases of the product's or process' life cycle. Just a few studies have been done on the use of ERP systems on construction sites, particularly for designers, technicians, and workers. the main focus has thus far been on retail businesses, engineering companies, and design firms. The purpose of this study is to conduct research on the effectiveness of ERP systems at contractor sites and, as a result, their implementation status. A wide range of market research, literature reviews, and modified surveys may be used as the methodology. The majority of contractor sites are reported to be aware of ERP systems, although only a small number of organizations have so far implemented such systems. The main reason is that every ERP system adoption requires a significant time, financial, and resource investment. However, if used to solve the right issues, these ERP systems could be a successful tool for business development

Leveraging ERP systems for improving ERP effectiveness in emergency service organizations: an empirical study

PurposeThe purpose of this paper is to examine the factors that influence enterprise resource planning (ERP) effectiveness within the context of emergency service organizations. Drawing on information systems (IS) effectiveness, ERP implementation and job satisfaction literature, the authors posit that user involvement, top management involvement and training satisfaction are the antecedents to perceived job satisfaction, and perceived job satisfaction leads to ERP effectiveness in emergency service organizations.Design/methodology/approachSurvey methodology is used for collecting data for this research, and the PLS-SEM technique is used for analysis.FindingsResults indicate users will be more satisfied with their training if their inputs are taken into account during their training and the top management is actively involved during the training process. Further, if the users perceive that they are adequately trained, they will be more satisfied with their jobs in using ERP, which will also lead to more effective ERP usage in emergency service operations.Research limitations/implicationsThe focus of this study is on a single emergency service organization and thus may not be generalizable to other sectors. The authors extend ERP research to the context of emergency service organizations and thus add to the literature on ERP and emergency services. They conceptualize perceived job satisfaction to integrate roles, teamwork, supervisor and their perception regarding their potential to grow in the organization.Practical implicationsThe managerial contribution of this research is to identify the motivational aspects and provide practical insights into the effective use of ERP systems for emergency service organizations. From a managerial perspective, the study provides a framework for both IS and emergency service providers/executives to understand and evaluate the factors that help them use ERP effectively in their firms.Originality/valueThis study extends the knowledge of ERP systems. While most of the ERP research focuses on implementation, the authors’ focus is on the effective use of ERP in emergency service organizations. They focus on identifying key factors that are important to using ERP effectively, specifically in emergency service organizations.

Digitalization of the Healthcare Supply Chain through the Adoption of Enterprise Resource Planning (ERP) Systems in Hospitals: An Empirical Study on Influencing Factors and Cost Performance

Rising healthcare costs force healthcare organizations worldwide to reconsider their business strategies. Hospital managers are tasked with lowering operating costs while upholding the high quality of care, two goals perceived as contradictory by many healthcare professionals. Attempting to contribute towards reaching these goals, the study explores the digitalization of the healthcare supply chain through the adoption of enterprise resource planning (ERP) systems and its impact on hospital supply chain costs. Established technology adoption theories are synthesized to develop a research model that investigates the adoption of hospital ERP systems and its impact on supply chain cost performance. The framework is validated via structural equation modeling (SEM) with data collected from 107 Greek public hospitals. The results indicate that technological and organizational readiness, hospital size, governmental policies, and perceived benefits have a significant influence on the extent of ERP systems adoption. They also demonstrate a statistically significant association between the use of ERP systems and hospital supply chain costs. The present study highlights the influencing factors of ERP systems adoption in hospitals and provides empirical evidence on the resulting cost benefits., This implies greater urgency for hospitals to digitalize their supply chain by implementing and fully exploiting the ERP systems’ functionality in order to reach their goal of delivering quality care at a lower cost.

The CSFs from the Perspective of Users in Achieving ERP System Implementation and Post-Implementation Success: A Case of Saudi Arabian Food Industry

Enterprise resource planning (ERP) systems have a major impact on the functioning of organizations and the development of business strategy. However, one of the main reasons that cause failure in ERP implementations to achieve the expected benefits is that the system is not fully accepted by end users. User rejection of the system is the second reason after time and budget overrun, while the fourth barrier to ERP post-implementation. Most studies have focused on ERP adoption and installation while neglecting post-implementation evaluation, which omits insights into the priority of ERP systems and CSFs from the stance of ERP users. Therefore, this study identified factors that led to user acceptance of the use of ERP systems at both implementation and post-implementation stages (after installation). In addition, this study assessed the interrelationship between the factors and the most influential factors toward user acceptance. A survey was conducted among pioneers of the food industry in Saudi Arabia, which included 144 ERP system users from assembly and manufacturing, accounts, human resources, warehouse, and sales departments. The descriptive-analytical approach was deployed in this study. As a result, project management, top management support, and user training had significant impacts on the efficacy of ERP system implementation. On the contrary, support for technological changes in new software and hardware, managing changes in systems, procedures, and work steps already in place within the organization, as well as user interfaces and custom code, displayed a direct impact on user acceptance of ERP systems post-implementation. This study is the first research that provides a rating of CSFs from the perspective of its users in Saudi Arabia. It also enables decision makers of food industries to better assess the project risks, implement risk-mitigation methods, create appropriate intervention techniques to discover the strengths and limitations of the ERP users, and value the “best of fit” solutions over “best practice” solutions when determining the most appropriate option for food industries.

Knowledge Management Model Development and Validation Using an ERP Simulation

ABSTRACT To remain competitive, firms should formulate training strategies ensuring employees’ core competencies remain in alignment with adopted information systems (IS). This is especially true for employees working with Enterprise Resource Planning (ERP) systems, a widely adopted IS. Training employees on the use of ERP systems must include a comprehensive knowledge management (KM) approach. Based on the structuration theory of technology, this research demonstrates how an ERP simulation can used effectively as a contextualized training mechanism to foster continuous learning among experienced users from disparate functional units. A research model was developed that synthesized facets and enablers associated with collaborative KM systems and constructs from existing KM and technology acceptance models. Partial Least Squares (PLS) Modeling confirmed the impact of the multi-faceted constructs of the knowledge creation process on performance expectancy, one of the primary beliefs of the Unified Theory of Acceptance and Use of Technology.

The Contribution of ERP Systems to the Maturity of Internal Audits

Maturity models help companies verify whether their maturity goal has been reached and point out some instruments that can be used to reach their desired maturity levels. Furthermore, if the organization's goal is to improve their organizational performance and competitiveness, then it is crucial to use ERP (enterprise resource planning) systems together with innovative accounting procedures and management strategies. Thus, this study aims to combine these two topics: ERP systems and maturity in IA (internal audit), assessing eventual existence of a relationship between these topics. The methodology used was a survey, through a questionnaire, to Portuguese internal auditors. From a sample composed of 83 responses, it is highlighted that although most of the results point to a high level of maturity of the IA, despite the sample size limitation, it was possible to conclude that, among other outcomes, there is no statistical evidence that points to a direct relationship between the use of ERP systems in the audit procedures and maturity levels in IA.

Application of Factors and Moderation Analysis on Enterprise Resource Planning System Usage in the Middle East

Organizations make substantial investments in implementing enterprise resource planning (ERP) systems to improve the efficiency and utilization of ERP systems. This study examined the factors influencing and moderating the use of ERP systems. The research variables' hypothetical relationships and moderation analysis were examined through factor analysis and partial least squares structural equation modeling. This study suggests that specific factors significantly influence and moderate the employees' system use. The research results could serve as a reference for vendors when planning the implementation of an ERP system.

The Manoeuvring of ERP in Education

Abstract: The goal of this project is to raise productivity levels in the installation of enterprise resource planning (ERP) software, notably in the educational sector. In order to do this, it was determined what factors related to benefits sought through the use of ERP systems and what crucial criteria underpinned successful ERP deployment. An institutional enterprise resource product that will connect all the departments within the institution, including academics, finance, administrative, communication, and information; contribute to the automation process; provide a dashboard for the institution; allow for the payment of fees and the keeping of logs; and have a better user interface and multi-platform usability (web & android) Android app. ERP college web applications are the only web applications that combine all of the modules and features of the college system that the administrative head may manage and students and faculty can access with a legitimate user ID and password. The project's goal is to provide a solid interface that allows educational institutions to easily and quickly handle all of their workflows, from students, preceptors, and management to all notices. Even in virtual mode, it will enable better security and stable operation. This can be particularly useful when there is a pandemic. If done with sophisticated intelligence, it might even assist the institutions in identifying management weak points or transmit its information back to top level board for development and general organizational well-being, assisting it in fulfilling its true mission.

Does business intelligence mediate the relationship between ERP and management accounting practices?

PurposeThe purpose of this study is to investigate the role of business intelligence and analytics (BI&A) in mediating the relationship between enterprise resource planning (ERP) and three sets of management accounting practices (MAPs): budgeting, costing and performance evaluation. It also examines the extent to which the usage of ERP affects the intensity of the application of various MAPs.Design/methodology/approachStructural equation modeling (SmartPLS 3) is used to analyze data collected from a cross-sectional survey of 82 firms in the UAE. The results indicate that the constructs are valid and reliable and that the model supports the research hypotheses.FindingsThe findings confirm the positive effect of the extent of using ERP systems, as a construct of modules, on the extent of applying three sets of MAPs. They also show that the extent of the use of BI&A systems partially mediates the relationship between the extent of the use of ERP systems and intensity of applying each of the three sets of MAPs.Practical implicationsThe results encourage organizations to adopt BI&A to reap the full benefits of ERP.Originality/valueIn contrast to the extant research that presumes a direct influence of ERP on MAPs, this study investigates if the extent of the use of BI&A mediates the presumed relationship between the extent of the use of ERP and intensity of applying each of the three sets of MAPs.

Analysis and Evaluation of User Acceptance on the Use of Enterprise Resource Planning (ERP) Systems at PT Trisco Tailored Apparel Manufacturing

Enterprise Resource Planning is a system that connects business areas, which benefits companies by increasing productivity, reducing costs, and simplifying business processes. However, it also found a case that considers the use of ERP systems to fail. Therefore, the use of ERP systems needs to be optimized, one of which is in terms of users. This research will be analyzed and evaluated the factors that influence user acceptance using the TAM2 model. The variables used are 11 variables in TAM2, including moderator variables. This research was conducted at PT Trisco Tailored Apparel Manufacturing, with a sample of 43 and an online questionnaire as a data collection method. Data processing using SmartPLS. The analysis conducted in the analysis of inner models such as validity and reliability tests, and analysis of inner models such as the coefficient of determination and path coefficient. The final step is testing the hypothesis with the bootstrapping method. The results obtained are the most significant factor is the image of the perceived usefulness, then the perceived usefulness of the intention to use the system. It has also found that if the system were mandatory, voluntariness would not be significant. Therefore, the results of this study can use as a source of evaluation for the company.

Measuring enterprise resource planning (ERP) systems success from a managerial accounting perspective

A major objective of management accounting is to support managers in decision-making by providing decision-relevant interdepartmental information. Hence, enterprise resource planning (ERP) systems are important for the application of management accounting techniques as they streamline the necessary information. Besides the fact that ERP systems are important, there was little research conducted which is directly concerned with concrete benefits that arise with the use of ERP systems within management accounting. This study with 94 participants contributes to this research field by examining benefits that arise with the use of ERP systems within management accounting and the characteristics that are crucial for achieving those benefits. As there was a recent wave of new ERP systems (i.e., SAP S/4HANA®), the results were clustered into organizations that are using traditional and modern ERP system where appropriate (i.e., response time). The outcomes indicate that using ERP systems within management accounting offers benefits that are positively interrelated with the extent and the satisfaction of using this information to make decisions. As a higher extent of using this information and a higher degree of satisfaction with this information is positively interrelated with organizational performance, we show that using ERP systems within management accounting helps improve organizational performance

The impact of perceived accounting benefits on the enterprise resource planning success: The mediating role of effective system use

In the past decades, enterprise resource planning (ERP) systems have becomeincreasingly automated, particularly for routine management accounting tasks. However, therehas been little research investigating the accounting benefits of adopting ERP systems. Thisstudy investigates the role of perceived accounting benefits in ERP success. Drawing on Juran’sprinciple of ‘fitness for use,’ this study establishes a framework that captures how perceivedaccounting benefits influence effective system use, which, in turn, enhances enterprise success.Using Partial Least Squares – Structural Equation Modelling (PLS-SEM) with survey datacollected from 120 enterprises in Vietnam that have implemented ERP, our findings providestrong support for the predicted positive effect of perceived accounting benefits on enterprisesuccess, and for the hypothesis that this relationship is fully mediated by effective system use.This study is novel for two reasons. First, it is one of the first attempts to provide empiricalevidence that effective system use and enterprise success are valuable outcomes of accountingbenefits perceived to be gained from the use of ERP systems. Second, it discovers anddemonstrates that effective system use is the most appropriate system-use concept in thepresent enterprise systems-related context, a topic that remains under discussion in theliterature.

Which Came First, it or Productivity? Virtuous Cycle of Investment and Use in Enterprise Systems

While it is now well established that IT intensive firms are more productive, a critical question remains: Does IT cause productivity or are productive firms simply willing to spend more on IT? We address this question by examining the productivity and performance effects of enterprise systems investments in a uniquely detailed and comprehensive data set of 623 large, public U.S firms. The data represent all U.S. customers of a large vendor during 1998-2005 and include the vendor's three main enterprise system suites: Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer Relationship Management (CRM). A particular benefit of our data is that they distinguish the purchase of enterprise systems from their installation and use. Since enterprise systems often take years to implement, firm performance at the time of purchase often differs markedly from performance after the systems go live. Specifically, in our ERP data, we find that purchase events are uncorrelated with performance while go-live events are positively correlated. This indicates that the use of ERP systems actually causes performance gains rather than strong performance driving the purchase of ERP. In contrast, for SCM and CRM, we find that performance is correlated with both purchase and go-live events. Because SCM and CRM are installed after ERP, these results imply that firms that experience performance gains from ERP go on to purchase SCM and CRM. Our results are robust against several alternative explanations and specifications and suggest that a causal relationship between ERP and performance triggers additional IT adoption in firms that derive value from their initial investment. These results provide an explanation of simultaneity in IT value research that fits with rational economic decision-making: Firms that successfully implement IT, react by investing in more IT. Our work suggests replacing either-or views of causality with a positive feedback loop conceptualization in which successful IT investments initiate a virtuous cycle of investment and gain. Our work also reveals other important estimation issues that can help researchers identify relationships between IT and business value.

Technology acceptance model-based research on differences of enterprise resources planning systems use in India and the European Union

The adoption of Enterprise resource planning (ERP) systems by organizations is crucial in today’s competitive globalized marketplace. The experience with ERP systems in numerous organizations over the last decade indicates that a successful implementation of ERP systems does not necessarily lead to a successful ERP usage. This paper addresses the scientific problem of differences in ERP acceptance and utilization in different cultural environments. The research question was whether and to what extend users’ extensive and explorative use of the ERP system differs in regions with different cultural backgrounds. Namely, organizations benefit from ERP systems only to the extent to which the users accept and utilize them. But the use of ERP systems at an advanced level is closely connected with the employees’ acceptance of these systems. To improve the efficiency and effectiveness of ERP systems in their maturity stage of use, when the employees already accepted ERP system, organizations need to understand the factors that impact user satisfaction and thus influence their extended use of the ERP system. Because of the socio-economic importance of India and the European Union (EU), we conducted a comparative research study into the similarities and differences of their use of ERP systems. From a theoretical point of view, the paper extends the original technology acceptance model (TAM), where two additional factors (work compatibility and extended use) were added. Additional external factors which can influence the users’ acceptance of ERP systems have been included into research, too. The main objective of this study is to find the key determinants that have an impact on user satisfaction and on the extended use in different cultural environments (i.e. the EU and India). We analysed and compared the data of 293 ERP users from 44 organizations in the EU and 577 ERP users from 13 organizations in India. Even though the use of ERP systems in India and the EU is at the same advanced level, there are differences which are connected to organizational cultures, presumed resulting from cultural differences of researched regions. Research data show some differences in the impacts on extended TAM model factors and some differences regarding the impacts of external factors researched.

SEM–ANN based research of factors’ impact on extended use of ERP systems

The main objective of this research is to test the hypothesis that the two-step structural equation modelling (SEM) and artificial neural network (ANN) approach enables better in-depth research results as compared to the single-step SEM approach. This approach was used to determine which factors have statistically significant influence on extended use of enterprise resource planning (ERP) systems. The research model and the hypothesized relationships are based on the technology acceptance model (TAM). Majority of research on ERP acceptance has been conducted with SEM based research approaches. The purpose of this paper is to extend basic TAM research which is traditionally based on SEM technique with ANN approach. In the first step of the present research the SEM technique was used to determine which factors have statistically significant influence on extended use of the ERP systems; in the second step, ANN models were used to rank the relative influence of significant predictors obtained from SEM. The main finding of this research is that the use of multi-analytical two step SEM–ANN approach provides two important benefits. First, it enables additional verification of the results obtained by the SEM analysis. Second, this approach enables capturing not only linear but also complex nonlinear relationships between antecedents and dependent variables and more precise measure of relative influence of each predictor.

Effects of General and ERP Self-Efficacy Beliefs on the Acceptance of ERP Systems

The impact of computer self-efficacy (CSE) on acceptance and utilisation of enterprise resource planning (ERP) systems is widely recognised in the literature. However, past ERP adoption research has mostly used CSE as a universal and general computer cognitive variable across the computing domain. While CSE is a multifaceted concept which can be conceptualised and assessed at the general computer or application-specific level, past studies did not differentiate between the general and application self-efficacy belief in examining the acceptance of ERP systems. This study aims to address this issue and make a clear distinction between general computer and application (ERP) self-efficacy beliefs and examines the effects of both types of efficacy beliefs on known determinants of acceptance and use of ERP systems. The results provide strong support for the effects of self-efficacy beliefs at the ERP level. The results show that the effects of CSE beliefs at the ERP level are stronger than those of general CSE beliefs on ERP acceptance behaviour.

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.

Carbon footprinting of large product portfolios. Extending the use of Enterprise Resource Planning systems to carbon information management

A number of global brands have committed to reducing carbon emissions and the footprint of their products by certain amounts. Attaining these goals requires that decision makers have timely and detailed carbon information across their product portfolios, and along their production processes and supply chains. However, the number of product carbon footprints in a company is typically limited since it is normally not backed up by an information system for regular carbon data collection and management. Due to their wide availability, Enterprise Resource Planning (ERP) systems represent one promising approach to managing and using carbon information. This research sheds light on the requirements of a comprehensive carbon information management system and discusses the contribution of ERP systems to carbon information management for large product portfolios. To approach the issue, a qualitative analysis of key challenges is conducted based on a case study in a multinational food company. The empirically-supported results provide evidence that large-scale carbon information management covering large product portfolios can be feasible. Feasibility is achieved by re-using existing information assets, thereby increasing the timeliness and accuracy of data and reducing the cost of carbon information generation and use. The paper thus identifies and discusses a set of implications in scaling product carbon footprinting across a company's entire product portfolio by means of ERP systems. The findings propose how the use of ERP systems in carbon information management can improve the overall efficiency and effectiveness of carbon footprinting.