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

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.

2020 ◽  
Vol 12 (21) ◽  
pp. 8787
Author(s):  
Justyna Patalas-Maliszewska ◽  
Hanna Łosyk

In recent years, more reports and articles have been published on the necessity of implementing changes to manufacturing processes in the context of sustainable development (SD). The use of IT systems in manufacturing companies creates the opportunity to support changes implemented in the context of adaptation to the concept of SD. This paper proposes and explores a Sustainable Development Card (SDC) within an enterprise, the use of which will enable knowledge about the enterprise’s development level to be gained in the context of SD through the data and information collected from the information system, namely, the Enterprise Resource Planning system (ERP) implemented within a company. This research uses studies from the literature on the subject and also the case study in order to determine the SDC integrated with the ERP system. The Analytic Hierarchy Process (AHP) method is used, which uses validity indicators to allow a manufacturing company’s development to be evaluated within the context of SD. The results were verified by a real case study of a Polish manufacturing company. It was determined that the proposed approach allows SD to be assessed in a manufacturing company and enables the implementation process of SD strategy to be constantly monitored. This paper contributes to theory and practice at the interface of the development and sustainability of a manufacturing company, whereby assessing sustainability is associated with the development of strategy and information systems that are associated with the development of an organisation. The possibilities of using the results of research, in practice, are demonstrated convincingly.


Author(s):  
Stephen Kahara Wanjau

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.


2021 ◽  
Vol 9 (1) ◽  
pp. 610-628
Author(s):  
Athambawa Haleem

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.


2021 ◽  
Vol 56 (4) ◽  
pp. 764-778
Author(s):  
Sudhashini Nair ◽  
Foo Wai Xin ◽  
Salwa Ahamad ◽  
Neeta Jayabalan

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.


2021 ◽  
Vol 22 (2) ◽  
pp. 221-241
Author(s):  
Defriko Gusma Putra ◽  
Rita Rahayu ◽  
Anne Putri

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.


Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel

Organizations require to enhance their firm level resources to compete in turbulent business environment. Strategic application systems, such as an Enterprise Resource Planning (ERP) System is one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large scale organizational change and hence it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence this chapter applies a General Morphological Analysis(GMA) to identify the most suitable theory to analyse ERP implementation. Socio technical theory with Leavitt's diamond model was analysed as most appropriate since they are based on the of premises organizational change at firm level. Socio technical organizational change model will enable stakeholders to analyse resources required for core dimensions of the organization for ERP implementation.


2020 ◽  
Vol 16 (4) ◽  
pp. 146-160
Author(s):  
Alexander Novikov ◽  
Marina V. Sazonova

The article is dedicated to pointing out the main principles of choosing modern enterprise resource planning (ERP) system for highly technological domestic enterprises. The article provides criteria for choosing ERP system and the risk group for their implementation. The close dependence of the success of the implementation of ERP systems on the proportion of projects for which the budget has not been exceeded has been revealed; the share of projects for which the excess of the actual period over the planned period of the project occurred and the share of implementation of solutions of the “box” type. The authors conclude that it is necessary to develop an information system that meets the specifics of a particular enterprise, as well as careful planning for the timing and cost of implementing this system.


2011 ◽  
pp. 271-287
Author(s):  
J. Martin Santana ◽  
Jaime Serida-Nishimura ◽  
Eddie Morris-Abarca ◽  
Ricardo Diaz-Baron

The case describes the implementation process of an ERP (enterprise resource planning) system at Alimentos Peru, one of the largest foods manufacturing companies in Peru. It discusses the organization’s major concerns during the mid-1990s, including increasing competition, inefficiency of business processes, and lack of timely and accurate information. To address these concerns Alimentos Peru launched several projects, one of which involved the implementation of an ERP system. The case explains the criteria used to evaluate and select the system, as well as the main issues and problems that arose during the implementation process. More specifically, the case focuses upon a set of implementation factors, such as top management support, user participation, and project management. Finally, the case concludes with a discussion of the benefits obtained from the introduction of the system as well as the new organizational challenges.


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