Impact of ERP systems usage on organizational agility

2015 ◽  
Vol 28 (3) ◽  
pp. 570-588 ◽  
Author(s):  
Faisal Aburub

Purpose – Enterprise resource planning (ERP) systems can be considered as cornerstone that allows most organizations to achieve their business goals. The purpose of this paper is to investigate the impact of ERP system usage on agility in organizations. Design/methodology/approach – The data were collected from 90 branches of well-known banks in the Middle East, such as HSBC, Standard Chartered and Arab Bank. Data were analyzed using a path analysis methodology. Findings – A new model has been developed. An empirical investigation was performed on the banking sector in the Middle East to test the new model. Despite the results showing that the impact of ERP system usage on banks’ agility is significant, the variance of banks’ agility that is explained by the use of ERP systems is weak. This indicates that ERP usage may not influence sufficiently the current agility drivers in Middle-Eastern banks and that there may be other significant variables that contribute to agility in the banking sector. Research limitations/implications – The findings of this research were based on a survey conducted among banks in the Middle East. The results are applicable in Middle-Eastern banks, but may not be applicable in other regions. Practical implications – Banking practitioners in the Middle East should be aware that successful implementation of ERP systems may not lead to the achievement of sufficient competency, flexibility, quickness, and responsiveness. Hence, such implementation may not deliver banking agility. Originality/value – This research model investigates the impact of ERP usage on the agility of banks in the Middle East.

2017 ◽  
Vol 12 (4) ◽  
pp. 17-30
Author(s):  
Munther Al-Nimer ◽  
Ahmed Omush ◽  
Adel Almasarwah

The study aims to measure the extent of implementing ERP systems in the banking sector in Jordan, and identify the main factors that influence the implementation decision, in addition to measure the impact of the post-implementation of the ERP system on the financial performance. The study utilized a content analysis as a research instrument. The study of population consisted of all the banks in Jordan, where the study applied ‘Purposive Sample’ type. Therefore, the study included 11 banks from 2011 to 2016.The study indicated that the implementation year of the ERP system started in most of the Jordanian banks in 2013, and the rates vary from bank to bank according to their importance and the level of awareness. Training courses are considered the main variable that these banks face in the process of implementation. In addition, awareness of the advantages, the cost, and supporting the infrastructure are the core factors needed to influence the implementation decision.There is no impact when implementing an ERP system on the financial performance of the Jordanian banks in regard to the ROI and the DPS; on the other hand, there is an impact of the ERP system on the overall performance of the banks.The study recommends to disseminate knowledge on the advantages of implementing of ERP system in Jordanian banks and to develop the IT department efficiency. Moreover, it will be worthwhile to examine the effect of ERP systems by utilizing financial and non-financial measurements.


2020 ◽  
Vol 10 (2) ◽  
pp. 74-88
Author(s):  
Ivana Dropulić

The subject of this research is the impact of ERP system (Enterprise Resource Planning) on management accounting, namely data collection, internal reporting of managers, production and control of financial plan, implementation of modern management accounting techniques and employees participating in internal reporting. The survey was conducted in the insurance industry of the Republic of Croatia during 2019, in which 6 companies (33.4%) participated. The average number of years of using the ERP system is 13 years, which indicates the fact that the ERP system is represented in the insurance industry, which is characterized by successful implementation and a high degree of utilisation of its capabilities. According to the obtained results, ERP systems significantly increase the accuracy of data collected from society and the environment. Also, ERP systems significantly affect the internal reporting of managers by reducing the time required for monthly/quarterly internal reporting and increasing the frequency and number of different types of periodic reports. In addition, the time required to prepare a financial plan has been significantly reduced due to the implementation of the ERP system. Regarding the impact of the ERP system on the installation of modern management accounting techniques, the significance of the impact was found only in the use of target costs and the system of key performance indicators. The impact of the ERP system on employees participating in internal reporting has significantly reduced the time spent on collecting data for internal reporting as a result of the implementation of the ERP system. Given the above, the results of this research provide a more precise and clear insight into the impact of the ERP system on management accounting in the insurance business of the Republic of Croatia.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José Luís Martins ◽  
Carlos Santos

Purpose This paper aims to investigate the changes caused by the use of the enterprise resource planning (ERP) systems in the accounting of organizations at different levels: organizational structure; processes; and employees. Design/methodology/approach The authors use a qualitative methodology with interpretative analysis through the study of five cases in Portuguese companies that implemented the Sage ERP X3. The data collection was carried out mainly through semi-structured interviews. Findings The results indicate that the successful implementation of the ERP system is associated with changes in the organizational structure, reengineering of processes and changes in the functions of employees. These changes interact and cause modifications among themselves, which makes it difficult to identify the origin and sequence of changes related to the implementation of the systems. It was possible to identify the direct impact of the ERP system on the change of processes, which is reflected in the functions of the employees, as well as to verify that the ERP system provides the opportunity for companies to change their organizational structure. Originality/value This paper contributes to the accounting literature by providing evidence on the influence of ERP systems on organizational aspects of accounting in the Portuguese reality, attesting that the successful implementation of the ERP system is associated with changes in the organizational structure, reengineering of processes and changes in the functions of employees.


2017 ◽  
Vol 25 (3) ◽  
pp. 414-446 ◽  
Author(s):  
Sandra Khalil ◽  
Patrick O’sullivan

Purpose The purpose of this paper is to provide further insight into internet social and environmental reporting (ISER) in the Middle East by investigating the ISER of Lebanese banks as well as their greenwashing behaviour and identifying its extent, quality and association with different variables such as profitability, size, religion and other variables. Design/methodology/approach This study adopted a mixed methodology. Interviews were conducted to seek the opinions of banks towards corporate social responsibility (CSR). Content analysis of bank’s websites was used to examine the extent, quality and association of ISER with several bank characteristics. Findings The results show the prevalent use of ISER and greenwashing by Lebanese banks. The most disclosed category of ISER is community, whereas the least disclosed is environment. The study found a positive association between ISER and bank profitability, size, leverage and ownership concentration and an insignificant relationship with age and religion. Research limitations/implications The authors recognise that the sample is small and addresses a single context and that it could have been expanded to other Middle Eastern contexts. However, the study is exploratory focusing on the Lebanese banking sector which is one of the most developed in the region. Further longitudinal studies could also be conducted to complement the work. The process used to measure greenwashing could be enhanced by addressing the materiality of CSR disclosures to stakeholders and the purpose of communicating CSR information. Practical implications In light of the empirical findings, banks will gain a better understanding of the status and importance of ISER and will understand the risks of greenwashing leading them towards higher standard ISER and more ethical activities, which will have a positive impact on the Lebanese economy and society. Originality/value This study examines almost all aspects of online social and environmental disclosures including the webpage, CSR sections in addition to online published reports; it is an investigation about ISER with reference to Lebanon which has perhaps the most significant banking sector in the Middle East. It tackles the greenwashing issue in a new context and in a different way by examining its association with several variables. The study also investigates the association between religion and ISER which has seldom been tackled in similar studies.


2019 ◽  
Vol 32 (6) ◽  
pp. 1633-1656 ◽  
Author(s):  
Soud Almahamid

Purpose Synthesising theories of enterprise resource planning (ERP), psychological empowerment and agile capabilities, the purpose of this paper is to build and test a novel theoretical model linking ERP system usage with agile capabilities via users’ psychological empowerment in Jordanian commercial banks. Design/methodology/approach A questionnaire was developed to collect the relevant data based on the extant literature. The population of this study consisted of all ERP system users working at Jordanian commercial banks in Amman City. The questionnaire was circulated to a purposive sample of actual users of ERP systems for two reasons. First, it was not possible to obtain a list of actual ERP users in each bank, for security and privacy reasons. Second, actual users of ERP systems are the most relevant source of information. Findings The results revealed that ERP system usage has a significant positive impact on both agile capabilities and users’ psychological empowerment. The results also showed that users’ psychological empowerment has a significant positive impact on agile capabilities. In addition, the results provide empirical evidence that users’ psychological empowerment plays a mediating role between ERP system usage and all agile capabilities except responsiveness. Furthermore, by adding users’ psychological empowerment to the original research model, the study demonstrates a good predictive relevance for agile capabilities. Research limitations/implications The study only focuses on Jordanian commercial banks; it is a cross-sectional study; and the study data were subjective, reflecting respondents’ opinion on specific time. Practical implications Practitioners struggle to ensure high levels of ERP usage by target users, to achieve implementation success and to achieve expected benefits. More often, practitioners have focused on the ERP system project team, vendors and technical issues, but have ignored the human side of the implementation process. Hence, they have failed to acknowledge the role of psychological empowerment in ERP system acceptance and success. Practitioners are advised to promote the ERP system as a facilitation and empowerment tool for users rather than a means of surveillance and control. Moreover, practitioners can avoid high rates of ERP failure in the adoption and post-adoption stages by changing the aim of the ERP system introduction from increasing efficiency and visibility to enhancing users’ psychological empowerment. Practitioners can leverage agile capabilities to respond to changes in the business environment by ensuring healthy psychological empowerment for all ERP users to use the system to its full capacity and to exchange information between functional units in real time. Practitioners must ensure users’ psychological readiness to use the system before the system goes live. Originality/value The study developed and tested a new research model using the SmartPLS approach in a novel context.


2015 ◽  
Vol 6 (1) ◽  
pp. 25 ◽  
Author(s):  
Aries Wicaksono ◽  
Hery Harjono Mulyo ◽  
Ignatius Edward Riantono

The background of this research was to determine how the impact of the implementation and use of ERP systems on user performance and the factors that affect the successful implementation of the ERP system so that it can have a positive impact for users of the ERP system after the implementation of ERP systems. This study aims to Knowing whether the implementation of ERP systems on firm performance impact on ERP users in the company and Produce conclusions in the form of an evaluation of the implementation of ERP in the company in order to provide a positive impact on user performance. The model used to evaluate the impact of the implementation of the ERP system is Quantity of Work, Quality of Work, Job Knowledge, Creativeness Cooperation, Dependability, Initiative, personal qualities. The method used in this research is descriptive qualitative method of analytical and evaluative, by analyzing the impact of the implementation of the ERP system to the components of the user's performance. The results obtained are implementing ERP systems have a positive impact on user performance components.


2017 ◽  
Vol 11 (3) ◽  
pp. 306-342 ◽  
Author(s):  
Mona Althonayan ◽  
Abraham Althonayan

Purpose Enterprise resource planning (ERP) systems are complex and comprehensive software designed to integrate business processes and functions. Despite the difficulties and risk, the adoption of ERP systems is expanding rapidly. Universities make large investments in information systems and expect positive impacts. However, universities are facing serious challenges in implementing new technology. Therefore, this research aims to evaluate the impact of ERP systems on higher education (HE) from the perspective of stakeholders’ performance. Design/methodology/approach This research paper conducted a case study of an ERP system in a Saudi university to explore the impact of ERP system on the performance of the system’s stakeholders among the university’s employees. Findings The system quality factors (flexibility, compatibility, availability of right data, availability of currency, ease of use and timeliness) were found to affect performance positively, as were service quality factors (tangibility, reliability, responsiveness and assurance). This research further found that factors from pre-implementation, implementation and post-implementation phases had a direct effect on stakeholders’ performance. Research limitations/implications Future research would be useful during the maturity phase to include all stakeholders in several Saudi universities. In addition, more research can be beneficial to test the applicability of the impact of the ERP system on stakeholders’ performance in other public sector organisations and in the private sector. Practical implications The results suggest that organisations in general and HE institutions in particular should focus on the early stages and the implementation phase if they wish to achieve high standards of stakeholder performance. Originality/value This research makes a novel contribution by attempting to evaluate the impact of service quality on stakeholder performance in the ERP environment. The contribution uses service quality as a dimension consisting of four factors – reliability, assurance, tangibility and responsiveness. All four factors were found to be significant on ERP stakeholders’ performance.


2019 ◽  
Vol 11 (4) ◽  
pp. 883-893
Author(s):  
John J. Sailors

Purpose The purpose of this paper is to explore a host of issues related to the use of marketing metrics and firm performance in the context of the Middle East. Specifically, it seeks to explore which marketing metrics relate to perceived performance, to understand how frequency of metric reporting impacts perceived performance, to identify the impact that marketing dashboards have on perceived firm performance and to analyze how measurement ability relates to perceived performance. Design/methodology/approach This paper used an online survey administered to marketing managers at firms located in the Middle East. A total of 55 participants provided usable data. Participants provided the frequency at which 71 different marketing metrics are reported by their firms and their assessments of the firm’s performance with respect to sales growth, market share growth, and profitability. In addition, they indicated whether or not a marketing dashboard was used to report these metrics, and if so, how long ago the dashboard had been implemented. They also assessed their firm’s holistic ability to measure and use metrics compared to their competition. Findings As expected, marketers in the Middle East found the marketing metrics examined to vary in their usefulness as judged by their relationship to perceived performance. For those metrics that were perceived to be useful, their utility tended to peak at a moderate level of reporting frequency. These findings also varied by the type of performance considered. The use a marketing metric dashboard did not relate to perceived performance, but the frequency with which the dashboards were reported was found to have a negative linear relationship to perceived performance. Overall, the more capable respondents judged their firms to be with respect to measuring and reporting metrics, the higher their perceived performance. Practical implications This paper offers new insights into the usefulness of a wide variety of marketing metrics to marketers in the Middle East. It also provides guidance on the ideal reporting frequency for those metrics. The findings suggest that marketers in the Middle East should focus on reporting key metrics at an appropriate frequency, regardless of whether or not a dashboard format is used. If a dashboard is used, the results of this paper suggest that care should be taken that it not be reported too frequently. Originality/value This paper contributes to our understanding of how marketing metrics relate to performance. As the first such study undertaken in the context of Middle Eastern marketers, it represents an important replication and extension of previous findings in other contexts.


2018 ◽  
Vol 14 (2) ◽  
pp. 120-137 ◽  
Author(s):  
Gary Spraakman ◽  
Winnie O’Grady ◽  
Davood Askarany ◽  
Chris Akroyd

Purpose This 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/approach There were two groups of comparable respondents. Each group received a different preamble to the same questions. The differences in group responses were analyzed. Findings When 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/implications The research is limited by the relatively small samples and by the fact that these were different research projects. Practical implications Nudging has an obvious impact on research that should not be ignored. Social implications Unintentional nudging should be considered with all research projects. Originality/value This paper makes explicit that nudging occurs in research whether intentional or unintentional.


Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Ouiddad ◽  
Chafik Okar ◽  
Razane Chroqui ◽  
Imane Beqqali Hassani

Purpose An enterprise resource planning (ERP) system is commonly used for automating operational processes and enhancing their efficiency inside a company. In the recent years, the increasing development of ERP technologies has increased their impacts on decision-making. Such impact can no longer be underestimated. The purpose of this study was to evaluate the impacts of ERP systems on the improvement of decision-making quality inside large Moroccan companies. Design/methodology/approach Based on the DeLone and McLean information systems success model and by adopting a quantitative approach, survey data were collected through questionnaires. The established questionnaires were distributed to 104 decision-makers who use ERP systems. To test the developed research model, structural equation modeling based on the partial least squares method was used. Findings The findings of the present investigation showed that information and system quality had a positive impact on the overall user’s experience with the ERP system, whereas service quality had a negative impact on it. This influenced the quality of decision-making. The results also showed that the model used has sufficient and adequate convergent and discriminant validities, as well as sufficient reliability. Originality/value To the best of authors’ knowledge, this is the first empirical study that evaluates the effect of ERP systems on improving the quality of decision-making in Morocco. The results provide interesting theoretical and managerial implications.


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