THE BENEFITS OF ENTERPRISE RESOURCE PLANNING SYSTEM IMPLEMENTATION OF MANAGEMENT ACCOUNTING PRACTICES IN MALAYSIAN SMES

Malaysia is a primary destination for smart manufacturing and high technology activities. However, as businesses grow and compete, there is high pressure on small and medium-sized enterprises (SMEs) to improve their organizational performance, diversify and expand their business, and support stakeholders' interests. Management accounting practices (MAPs) are likely to allow businesses to achieve such objectives as the use of financial and non-financial information at the management and operational level will assist in planning, control, and decision-making subsequently. This increases profit and sales while reducing operational cost, improving quality, and strengthening stakeholders’ relationships, including enhancing customer value. Enterprise resource planning (ERP) is a system that allows businesses to achieve these enhancements as the ERP software integrates various automated processes related to technology, inventory, finance, services, and human resource management. The review of studies in the field of MAPs has found that the operational, tactical, and strategic benefit from the ERP system implementation may affect MAPs in SMEs; hence, this study aims to examine the possible relationships that may exist between operational, tactical, and strategic benefits of ERP implementation and MAPs among Malaysian SMEs. Data was collected using online questionnaires from 150 managers from SMEs in the state of Selangor. Using Structural Equation Modeling (AMOS), the study found that both operational benefit and strategic benefit of ERP system implementation had significant positive relationships with MAPs in Malaysian SMEs. The implications of the research findings of this study are discussed.

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The Empirical Evidence of Enterprise Resource Planning System Adoption and Implementation on Firm’s Performance Among Medium-sized Enterprises

Global Business Review ◽

10.1177/0972150919849751 ◽

2019 ◽

pp. 097215091984975 ◽

Cited By ~ 2

Author(s):

Adejare Yusuff Aremu ◽

Arfan Shahzad ◽

Shahizan Hassan

Keyword(s):

Enterprise Resource Planning ◽

Structural Equation ◽

Information Access ◽

Resource Planning ◽

Communication Process ◽

Planning System ◽

Future Research ◽

Erp System ◽

The Relationship

The objective of this study is to examine the mediating role of enterprise resource planning (ERP) system adoption on the relationship between performance of medium enterprises (PMEs) and organizational culture (OC), communication process (CP), organizational structure (OS), information technology readiness (ITR), technological change (TC), government policy (GP), information access (IA) and technology infrastructure support (TIS). This study also includes the role of top management support (TMS) as a moderating variable on the relationship between ERP and PME. This study proposes a theoretical framework based on theories such as resource-based view, contingency theory and diffusion of innovation. The data were collected from medium-sized enterprise (ME) organizations operating in South Western Nigeria. A total of 658 questionnaires were distributed to selected MEs and only 355 were returned and used for the analysis. The empirical data were analyzed using the Partial Least Squares Structural Equation Modelling (PLS-SEM). The results showed that CP, ERP, GP, IA, ITR, OC, OS, TC, TIS and TMS have significant direct relationships with the ERP and PME while GP is not significantly linked to ERP adoption. Moreover, IA, ITR, OC, OS and TC have no significant relationship with PME while ERP system adoption mediates the relationship between the CP, OC, OS, TC and TIS with PME. The findings showed that the presence of CP, OC, OS, TC and TIS will influence the PMEs in the adoption of ERP and confirmed that TMS plays an important role in moderating the relationship between ERP and PME. The findings provide important insights to CEO, managers, policymakers and researchers to help them understand the importance of using the ERP system to enhance the performance of medium-sized enterprise (PMSE) organizations. Limitation of the study is based on MEs only. In this light, future research can focus on the evolution of not only small enterprises but also large firms.

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Impact of Critical Success Factors on ERP Implementation: Typical Organizations in Sri Lankan Context

Global Journal of Computer Science and Technology ◽

10.34257/gjcsthvol19is1pg27 ◽

2019 ◽

pp. 27-30

Author(s):

Anuradha Jayakody ◽

E.M.M.N. Samaranayake ◽

Punchihewa N.N.W.G ◽

B.V.R. Jeewantha ◽

H.N.I. Wijesiri

Keyword(s):

Enterprise Resource Planning ◽

Structural Equation ◽

Success Factors ◽

Implementation Process ◽

Resource Planning ◽

Planning System ◽

Equation Modeling ◽

Erp Implementation ◽

Critical Success ◽

Linear Connections

Enterprise Resource Planning system is a software that suitable for the user to earn more ROI by involving business activities. By the way, most organizations are still afraid to adopt this to their organizations. The reason is the high-cost wastage, and also bankruptcy. But it is not true at all the time. ERP can implement to small and medium-sized organizations too. To clarify these points, the paper focuses on the critical factors that affect the success of an ERP implementation process. It will do by a conceptual framework. It review and assertion of 15 hypotheses will carry out using "structural equation modeling technique". The definition of multi-variable technology used since the ability to check multiple linear connections at once simultaneously depends on one or more variables dependently and independently.

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CONTROLLING THE CHANGING OF MANAGEMENT ACCOUNTING PRACTICES IN THE ENTERPRISE RESOURCES PLANNING ENVIRONMENT

Jurnal Manajemen dan Bisnis ◽

10.34006/jmbi.v9i2.196 ◽

2020 ◽

Vol 9 (2) ◽

pp. 59-72

Author(s):

Muhammad Nawawi ◽

Roza Mulyadi ◽

Dabella Yunia

Keyword(s):

Enterprise Resource Planning ◽

Structural Equation ◽

Information Quality ◽

Management Accounting ◽

Resource Planning ◽

Partial Least Square ◽

Least Square ◽

Primary Data ◽

Equation Modeling ◽

Manufacturing Companies

The aims of this research is to give empirical evidence of changes in management accounting practices (MA) by examining the effects of changes in data quality, information quality and management accounting tasks on the efficiency and effectiveness of accounting, and indirectly on change in management accounting after the adoption of an enterprise resource planning (ERP) systems. Empirical analysis of the study used primary data from a survey of 29 manufacturing companies with 102 CFO respondents, accounting managers and business controllers, with a response rate of 28.43%, providing significant support for the proposed model. Structural equation modeling (SEM) approach with testing tools using partial least square (PLS) is used in this research. The linear thing with the results of previous research is the same, it was found that the erp implementation time is the determinant of significant MA changes, while the difference from previous researchers is in the end user, where the company that has adopted the ERP system has just felt a greater MA change when compared to users early on. The results showed that the implementation of global ERP and the use of business intelligence tools (BI) were significantly related to changes in MA practices.

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

Corporate Ownership and Control ◽

10.22495/cocv19i1siart1 ◽

2021 ◽

Vol 19 (1, special issue) ◽

pp. 218-228

Author(s):

Patrick Ulrich ◽

Hasan Andac Güler

Keyword(s):

Organizational Performance ◽

Enterprise Resource Planning ◽

Management Accounting ◽

Resource Planning ◽

Research Field ◽

Managerial Accounting ◽

Erp Systems ◽

Major Objective ◽

Erp System ◽

Degree Of Satisfaction

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

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

International Journal of Engineering and Advanced Technology - Regular Issue ◽

10.35940/ijeat.e1084.0585c19 ◽

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.

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ERP Misfit-Reduction Strategies

Journal of Global Information Management ◽

10.4018/jgim.2013010104 ◽

2013 ◽

Vol 21 (1) ◽

pp. 59-81 ◽

Cited By ~ 4

Author(s):

Tan Shiang-Yen ◽

Rosnah Idrus ◽

Wai Peng Wong

Keyword(s):

Enterprise Resource Planning ◽

Structural Equation ◽

Information Quality ◽

Business Processes ◽

Deep Structure ◽

Resource Planning ◽

Equation Modeling ◽

Erp System ◽

Reduction Strategies ◽

Negative Impacts

Misfit between Enterprise Resource Planning (ERP) system and business is widely recognized as the main cause of ERP system failure. Modification of the ERP system and adaptation of business processes have been hyped as the means to reduce misfits between ERP system and business organizations. Nevertheless, to date, very little empirical evidence exists to demonstrate that the potential has indeed been realized. Thus, the purpose of this study is to empirically examine to which extent the two misfit-reduction strategies, namely system modification and organizational adaptation mitigate the negative impacts of ERP misfits on ERP system performance, which is measured by information quality in this study. A total amount of 305 sets of questionnaire that collected from the ERP system users in manufacturing sector in Malaysia were analyzed using Structural Equation Modeling (SEM) approach. The findings of this study have revealed that the effects of the two misfit-reduction strategies vary based on the different characteristic of ERP misfits. Specifically, system modification is found to significantly reduce the negative impacts of deep-structure misfit such as process misfit, whereas organization adaptation is significant in mitigating surface-structure misfit such as data presentation and layout.

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Enterprise Resource Planning System Implementation in Higher Education Institutions

Advances in Systems Analysis, Software Engineering, and High Performance Computing - Metrics and Models for Evaluating the Quality and Effectiveness of ERP Software ◽

10.4018/978-1-5225-7678-5.ch010 ◽

2020 ◽

pp. 236-264

Author(s):

Stephen Kahara Wanjau

Keyword(s):

Higher Education ◽

Enterprise Resource Planning ◽

Higher Education Institutions ◽

Resource Planning ◽

Planning System ◽

Successful Implementation ◽

System Implementation ◽

Erp System ◽

Global Standards ◽

Strategic Plans

The world over, higher education institutions have resorted to the use of ERP system to automate operations on a standardized platform in line with their strategic plans. This is because ERP system supports a “do-it-all” approach to organizational management in addition to education managers' quest to improve quality of service to their students and the need to meet regional as well as global standards. In most institutions, operational areas such as student admission, finance, procurement, examination management, staffing, and alumni management can now be done through the ERP system. This chapter examines the issues associated with implementation of ERP system in higher education institutions. After studying this chapter, you should be able to: appreciate the various strategies for ERP system implementation, identify the factors leading to successful implementation of ERP system in higher education institutions, distinguish between the different models for successful ERP system implementation, and understand the metrics for measuring success rate of ERP system implementation.

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Mediating Effect of Accounting Practices between Accounting Information System in Enterprise Resource Planning System and Firm Performance

INFORMATION TECHNOLOGY IN INDUSTRY ◽

10.17762/itii.v9i1.179 ◽

2021 ◽

Vol 9 (1) ◽

pp. 610-628

Author(s):

Athambawa Haleem

Keyword(s):

Firm Performance ◽

Organizational Performance ◽

Enterprise Resource Planning ◽

Significant Influence ◽

Accounting Information ◽

Resource Planning ◽

Mediating Effect ◽

Planning System ◽

System Quality ◽

Erp System

This study's main objective is to examine the mediating effect of accounting practices between AIS in ERP environment and firm performance of listed companies in Sri Lanka. AIS has two main dimensions, such as ERP System Quality and Accounting information Quality(ACIQ). The total population of the study consist of 295 companies. A random sampling method was applied, and 217 companies were used as a sample for this study. Amos 23 version was used as an instrument to analyze the data, and the structural equation model was applied to test the path relationship of the constructs. The study shows that ERP system quality and ACIQ have a statistically significant influence with Accounting practices and firm performance, while accounting practices have a significant influence with firm performance. In addition to this, accounting practices have a significant mediating effect between AIS and firm performance. IS managers and accounting professionals can use the finding and also should pay more attention to improve ERP System Quality and ACIQ in order to enhance Accounting Practices which subsequently having implication on firm performance. AIS quality and organizational performance will also be enhanced when new AIS applications and capabilities are brought in, as per the resource-based view.

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Sandbox Environments in an ERP System Context: Examining User Attitude and Satisfaction

Electronic Journal of Information Systems Evaluation ◽

10.34190/ejise.20.23.1.003 ◽

2020 ◽

Vol 23 (1) ◽

Author(s):

Tim Klaus ◽

Chuleeporn Changchit

Keyword(s):

Technology Acceptance ◽

Enterprise Resource Planning ◽

User Satisfaction ◽

Structural Equation ◽

Financial Education ◽

Resource Planning ◽

Equation Modeling ◽

Task Completion ◽

Erp Systems ◽

Erp System

Enterprise Resource Planning (ERP) systems are large complex software packages that are widely usedin organizations today. Due to the complexity, sandbox environments are often used for training on ERPsystems. This study examines the effectiveness of training using a sandbox environment, specifically examininguser attitudes, users’ perception of financial knowledge gained, and user satisfaction in the ERP environmentwhile learning financial concepts. The theoretical framework is based on the Technology Acceptance Modelwith additional factors predicted to impact users’ attitude and satisfaction. Data were collected from 124subjects who voluntarily participated in the study. Structural Equation Modeling was used to analyze the data.The results of this study should help organizations understand the factors impacting user attitudes on ERPtraining leading to higher self‑perception of knowledge gains and task completion satisfaction. In addition, thisstudy provides the results of using ERP systems as a tool for financial education.

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The Impact of Implementing an Enterprise Resource Planning System on Organizational Performance Using Balanced Scorecard

Journal of Management Research ◽

10.5296/jmr.v8i1.8523 ◽

2015 ◽

Vol 8 (1) ◽

pp. 37 ◽

Cited By ~ 1

Author(s):

Rifat O. Shannak

Keyword(s):

Organizational Performance ◽

Enterprise Resource Planning ◽

Balanced Scorecard ◽

Value Chain ◽

Resource Planning ◽

Planning System ◽

Erp System ◽

Before And After ◽

Internal Operations ◽

The Impact

ALPHA Company is an exclusive shopping community in the Middle East covering 8 countries (The GCC Region, Lebanon & Jordan) and provides exclusive access to time limited sales of different brands at discounts reaching 50-85% off retail price to its 3 million members and one million Facebook fans. The company has distinguished itself by offering an amazing collection of new brands and latest fashions at privileged prices and acceptable lead time.This research was conducted to appraise the organizational performance before and after implementing the ERP system using the Balanced Scorecard as a performance tool measurement.The company was facing many problems in the value chain including primary and support activities. It was suffering from inefficiencies within the internal operations (Logistics and Shipping, sourcing, procurement and warehousing), in addition to a lot of difficulties in managing its financial transactions.Based on the results of this research, it was concluded that after implementing the ERP system, the company became more efficient and effective in the value chain activities. In addition, its performance was enhanced and most of the problems were resolved successfully which led to better customer satisfaction and better reputation in the market.

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