scholarly journals The Influence of Enterprise Resource Planning (ERP) Implementation System on Company Performance Mediated by Organizational Capabilities

2021 ◽  
Vol 22 (2) ◽  
pp. 221-241
Author(s):  
Defriko Gusma Putra ◽  
Rita Rahayu ◽  
Anne Putri
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Organizational Capabilities ◽  
Company Performance ◽  
Significant Positive Effect ◽  
System Implementation ◽  
Erp Implementation ◽  
Erp System ◽  
The Impact ◽  
Positive Effect

Research aims: This study aims to examine the effect of Enterprise Resource Planning (ERP) system implementation on company performance with organizational capabilities as a mediating variable.Design/Methodology/Approach: This research is a quantitative study using 117 samples of manufacturing companies listed on the IDX from 2013 to 2018. Analysis and testing in this study employed SEM-PLS to test the effect of Enterprise Resource Planning (ERP) system implementation on company performance with organizational capabilities as a mediating variable.Research findings: The results showed that the ERP system's implementation had a significant positive effect on company performance and organizational capabilities. Organizational capabilities also had a significant positive effect on company performance. Besides, it was found that organizational capabilities mediated the relationship between ERP system implementation and company performance.Theoretical contribution/Originality: This study utilized a cybernetics approach theory, RBV theory, and organizational capabilities theory to investigate the mediating role of organizational capabilities in increasing the impact of ERP systems on company performance.Practitioner/Policy implication: This study provides evidence that ERP implementation makes an integrated operating system and can increase organizational capabilities by utilizing existing resources, and ultimately will also increase company performance.Research limitation/Implication: In this research, it is challenging to find organizational capability measures, such as marketing capability and process improvement. This study only used one intervening variable so that the information obtained from the results is still limited.

scholarly journals The Impact of Enterprises Systems on Sales Performance: A Study of Erp System Implementations in Polish Smes

2014 ◽  
Vol 5 (2) ◽  
pp. 54-59 ◽  
Author(s):  
Justyna Patalas-Maliszewska ◽  
Irene Krebs
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Sales Performance ◽  
Erp Implementation ◽  
Erp System ◽  
Financial Benefits ◽  
Sales Process ◽  
Return On Sales ◽  
Implementation Problems ◽  
The Impact

Abstract While having been the object of numerous studies, the link between ERP implementation and SMEs performance still requires understanding. This paper documents the effect of investments in Enterprise Resource Planning (ERP) systems on a firm’s sales performance and profitability measure such as return on sales (ROS). The models are based on a sample of 240 during time of defined activities in the sales process realized during the each month by 40 knowledge workers in each of 5 Polish SMEs announcements of ERP implementations. Our analysis of the financial benefits of these implementations yields mixed results. Our results are encouraging that we find the business activity that can persistent evidence of sales performance associated with ERP investments. This should help alleviate the companies that some have expressed about the viability of ERP given the highly publicized implementation problems at some firms.

Enterprise Resource Planning (ERP) Implementation Approaches and the Performance of Procure-to-Pay Business Processes

2017 ◽  
Vol 8 (1) ◽  
pp. 55-71 ◽  
Author(s):  
Ibrahim Kofahi ◽  
Haroun Alryalat
Keyword(s):  
Enterprise Resource Planning ◽  
Quantitative Research ◽  
Business Processes ◽  
Resource Planning ◽  
Big Bang ◽  
Research Approach ◽  
Erp Implementation ◽  
Erp System ◽  
Oracle Erp ◽  
The Impact

In spite of the importance of implementing Enterprise Resource Planning (ERP) system in any organization, there are still many fears of not getting the return on investment from implementing it. In addition, there are many ERP systems implemented in different organizations that claim they did not get enough benefit from these systems. For this reason, this paper is intended to study the impact of ERP implementation approaches (Agile, Big Bang, and Hybrid) on the performance of Procure-to-Pay business processes. This paper adapts the quantitative research approach by using the survey strategy, which is conducted by a questionnaire collected from 91 respondents working in fifteen companies that implement Oracle ERP in Jordan. The researcher uses the SPSS as an analysis technique to test all hypotheses. The findings of the study show that the two ERP Implementation approaches (Big Bang and Hybrid) have a significant impact on the performance of Procure-to-Pay business processes. On the other hand, the study shows that Agile (ERP) implementation approach has no significant impact on the performance of Procure-to-Pay business processes.

An integrated framework for ERP system implementation

2017 ◽  
Vol 25 (1) ◽  
pp. 91-109 ◽  
Author(s):  
Kalinga Jagoda ◽  
Premaratne Samaranayake
Keyword(s):  
Enterprise Resource Planning ◽  
Critical Success Factors ◽  
Success Factors ◽  
Resource Planning ◽  
System Implementation ◽  
Erp Systems ◽  
Erp Implementation ◽  
Content Type ◽  
Erp System ◽  
Critical Success

Purpose The 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/approach A 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. Findings The 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/implications The 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/value This 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.

scholarly journals Assessment of Universities’ and Higher Education Centers’ Preparedness for Successful Establishment of Enterprise Resource Planning Based on SWARA Method

2019 ◽  
Vol 30 (4) ◽  
pp. 496-506
Author(s):  
Fatemeh Taghavi ◽  
Jurgita Antucheviciene ◽  
Seyyed Aria Yaghobian
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Organizational Capabilities ◽  
Erp Implementation ◽  
Related Factors ◽  
Erp System ◽  
Successful Establishment ◽  
Higher Education Centers ◽  
And Performance ◽  
The University

Regarding existing pressures for effectiveness and performance improvement, there is a steep rise for the establishment of Enterprise Resource Planning (ERP). Unfortunately, failure rate for successful ERP establishment is high. Thereupon, evaluation of organizations’ preparedness to ensure organizational capabilities aimed at reaching desired outcomes is of paramount importance. The current research is intended to suggest Step-wise Weight Assessment Ractio Analysis (SWARA) method and assess the preparedness of our case study, i.e. the University of Mazandaran, for successful ERP implementation. Related factors impacting on the accomplishment of the ERP system were identified from former studies and weighted according to a hierarchical structure using our suggested methodology. After receiving numerical results, the preparedness of the University of Mazandaran for successful ERP implementation was calculated when the final weights were determined. Results showed that motivations required for ERP establishment as well as processes and IT infrastructures are average, while the influencing cultural factors, protective factors, and capabilities of the organization are weak.

scholarly journals The Direct and Indirect Effect of Enterprise Resource Planning System Implementation on Firm Performance through the Organizational Capabilities as a Mediator

2019 ◽  
Vol 8 (5C) ◽  
pp. 588-597
Keyword(s):  
Firm Performance ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Business Environment ◽  
Organizational Capabilities ◽  
Planning System ◽  
Technological Advancement ◽  
Manufacturing Companies ◽  
System Implementation ◽  
Erp System

In the midst of rapidly changing business environment and technological advancement, ERP becomes the solution for companies to improve efficiency and effectiveness by integrating existing system thus that companies can increase their performance. Using RBV approach, companies can properly manage their resources through the organizational capabilities also play an important role in improving firm performance. This paper aims to examine the effect of ERP system implementation on firm performance both directly and indirectly through the organizational capabilities as intervening variable at manufacturing companies listed on Indonesia Stock Exchange period 2013-2017 which consists of 100 samples of ERP Adopters and Non-Adopters. The conceptual model in this study tested and analyzed using PLS-based SEM. The results showed that the implementation of ERP system has significant effect on firm performance and organizational capabilities. Organizational capabilities also have significant effect on firm performance. In addition, organizational capabilities have proven to mediate the relationship between ERP system and firm performance. This shows that the implementation of ERP system makes the information system to be integrated thus it enable companies to be more efficient and will affect the organizational capabilities in maximizing the utilization of company resources that ultimately can improve the firm performance.

An Integrated Approach to Performance Evaluation of Enterprise Resource Planning (ERP) System Implementation

2019 ◽  
Vol 17 (3) ◽  
pp. 1-15 ◽  
Author(s):  
Paweena Wanchai
Keyword(s):  
Organizational Performance ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Integrated Approach ◽  
Erp Implementation ◽  
Erp System ◽  
Stock Market Valuation ◽  
Long Term Performance ◽  
Term Performance ◽  
The Impact

In spite of the immense expenses related with enterprise resource planning (ERP) systems execution and use, its effect on organizational performance stays vague. The goal of this study was to empirically examine the impact of ERP implementation and use on the long-term performance of organizations. This research leverages three fundamental specifications for the examination of impacts as follows: performance ratios (ROA, ROE, ROI, ROS), labor productivity (production function), and stock market valuation (Tobin's Q). This research used a total of six years of financial data from 47 organizations in Thailand that implement and use ERP system. The findings reveal that a post-adoption period of more than four years may be needed in order to observe a significant impact from ERP investments on organizational performance.

A Combined Fuzzy Method for Evaluating Criteria in Enterprise Resource Planning Implementation

2016 ◽  
Vol 12 (2) ◽  
pp. 25-52 ◽  
Author(s):  
Hodjat Hamidi
Keyword(s):  
Enterprise Resource Planning ◽  
Multiple Criteria Decision Making ◽  
Resource Planning ◽  
Erp Implementation ◽  
Fuzzy Method ◽  
Erp System ◽  
Priority Weights ◽  
Assessment Approach ◽  
Vendor Management ◽  
The Impact

Enterprise resource planning (ERP) system is an information system that supports and integrates many facets of a business, sales, and marketing. ERP system success depends on the rigor of the ERP Implementation processes. Scope creep, inadequate allocation of human resources over time, and vendor management are some common problems associated with the implementation of an enterprise system. This paper evaluates critical elements of ERP system that contributed to the success of the ERP implementation. For those organizations adopting ERP, the findings provide a roadmap to follow in order to avoid making critical, ERP Implementation mistakes. In this study, the combined fuzzy method is applied to assess ERP implementation factors. The combined fuzzy method is also capable of taking into consideration both tangible and intangible criteria. This method not only leads to a logical result but also visualizes the impact of various criteria on the final result. Applying the characteristics of dependence and feedback to combined fuzzy method could result in assessments that are more precise than those possible with other multiple criteria decision making approaches. The combined fuzzy method provides a useful assessment approach to this study. The benefits of using the combined fuzzy method for evaluating the ERP implementation come from the clear priority weights between alternatives. Also, a real case study from Iran is also presented to demonstrate efficiency of this method in practice.

Enterprise resource planning and efficiency

2015 ◽  
Vol 41 (4) ◽  
pp. 405-415 ◽  
Author(s):  
Jonghyun Park ◽  
Jin Park
Keyword(s):  
Enterprise Resource Planning ◽  
Emerging Market ◽  
Positive Association ◽  
Resource Planning ◽  
Least Square ◽  
Scale Efficiency ◽  
Erp Implementation ◽  
Content Type ◽  
Erp System ◽  
The Impact

Purpose – The purpose of this paper is to investigate the efficiency of Korean insurers that have adopted enterprise resource planning (ERP) system to improve their efficiency. Design/methodology/approach – The study uses Data Envelopment Analysis (DEA) with several inputs and outputs to measure both technical and scale efficiency. With the efficiency measures and using the ordinary least square with the hetereoscedacity consistent standard errors, the study further investigates the factors affecting efficiency, and the association between ERP and efficiency. Findings – This study finds a strong positive association between ERP implementation and the insurers’ efficiency and profitability. However, firms may experience a decrease in efficiency and profitability during the first and second year after ERP implementation. Research limitations/implications – Although the findings of this study are consistent with extant studies, the study’s findings may lack generalizability because the samples are limited small Korean Property/Casualty (P/C) insurers. Originality/value – This study investigates the impact of ERP implementation on P/C insurers in an emerging market.

Critical Success Factors for Enterprise Resource Planning System Implementation in Qatar

2019 ◽  
Vol 10 (4) ◽  
pp. 25-42
Author(s):  
Abdulla Ali Al Rabeay ◽  
Karma Sherif
Keyword(s):  
Project Management ◽  
Business Process ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Top Management ◽  
Management Support ◽  
System Implementation ◽  
Erp Implementation ◽  
Erp System ◽  
Top Management Support

The purpose of this study is to examine the impact of project management planning processes (including team competency and business process re-engineering) and top management support on the success of enterprise resource planning (ERP) system implementation in Qatar. This study adopted a quantitative method to collect data through a survey from employees working in Qatari government ministries that implemented an ERP system in the last 10 years. Partial least square structural equation modeling analysis was used to test the relationship among variables. The findings revealed that project management, top management support and business process re-engineering make a significant contribution to the success of ERP implementation. However, team competency and composition had no significant effect on ERP implementation success. The study recommends that governmental agencies who are planning to implement a new ERP system should consider these factors during the early planning stages in order to successfully implement the system and avoid any delays or overspending in project delivery.

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