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

2015 ◽  
Vol 8 (1) ◽  
pp. 37 ◽  
Author(s):  
Rifat O. Shannak

<p>ALPHA Company is an exclusive shopping community in the Middle East covering 8 countries (The GCC Region, Lebanon &amp; 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.</p><p>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.</p><p>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.</p><p>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.</p>

Author(s):  
Naser Zouri ◽  
Zahra Abdolkarimi ◽  
Seyed A. Payambarpour

Objective- The aim of the study is to enhance the mechanism of strategic performance measurement system goals base of four research questions: (i) to what association between the MCS and enterprise resource planning system (ERPS) intention to strategy performance management system (SPMS)? (ii) To what association between the performance management system (PMS) and ERPS intention to SPMS? (iii) To what relationship between the resource–based view/capabilities and ERPS intention to SPMS? (iv)To do comprehensiveness of organizational performance factors affected on ERPS intention to SPMS? Methodology/Technique A survey questionnaire was used to collect the data in Madinah, Reyaz, and Jeddah. Data was collected during the last section of 2013 of which 160 successful questionnaires were gathered for further analysis. Findings The result shows the impact of evaluation SPMS to solve the market place error and also ability of executives' level of management to solve the behaviours issue in business organization. Novelty - The significance of study contribute executive branch in Saudi universities for the safety of strategic performance measurement system implementation to be modified or changed, taking into account the financial metrics and non-financial when designing a control system. Type of Paper Empirical paper Keywords: , Strategic performance measurement system, Enterprise resource planning system, Strategic management category, Market place error.


2021 ◽  
Vol 12 (01) ◽  
Author(s):  
Ahmed Atries ◽  
◽  
Aiman A. Ragab ◽  
Mohamed A. Ragheb ◽  
Mohamed Wahba ◽  
...  

This research aims to study the impact of Enterprise Resource Planning (ERP) (information quality, system quality and system use) and human resource management (HRM) practices (training and development, information exchange, recruitment and testing, compensation and benefits, safety and health and employee relations) on organizational performance. Through the Balanced scorecard (financial performance, customer performance, supplier performance and employee performance) in the rebar sector companies within the Arab Republic of Egypt. Therefore, the researcher used the positivism philosophy in this study and the deductive approach because they are more compatible with the nature of the research and with what the researcher wants to reach. He also followed a quantitative method in collecting data, as he prepared a questionnaire and distributed it to 260 individuals working in the reinforcing steel sector. The data is analyzed using some statistical methods such as: correlation, and the structural equation model. The results fully accept the study hypotheses that there is a statistically significant relationship between ERP and organizational performance through the balanced scorecard. In addition to, relationship between ERP and HRM practices, moreover, relationship between HRM practices and organizational performance through the balanced scorecard. While it partially accepts that here is a statistically significant role for HRM practices, in the relationship between ERP and organizational performance through the Balanced Scorecard.


2018 ◽  
Vol 10 (5) ◽  
pp. 96
Author(s):  
Ziad Abdul Halim AL Theebeh ◽  
Tareq Hammad AL-Mubaydeen ◽  
Mahmoud Fawzi Ismael

This study aimed at examining the impact of the ERP system on the quality of internal auditing in the Jordanian commercial banks. For this purpose, the researchers designed a questionnaire that was distributed to specialists in the same field of this research. The questionnaire consisted of eight perspectives. The study’s sample included 21 Jordanian banks, while the study’s sample consisted of thirteen Jordanian commercial banks. The results discovered a statistical and significant impact on the application of the organization's resource planning system, especially in the field of finance, marketing, sales, management, human resources as well as the services’ system. Based on these results, the researchers raised up a set of recommendations, which are including the necessity of developing the capabilities of the internal auditors in the use of the organization's ERP system in general, and enhancing the accounting system to increase the confidence and the quality of the financial reports particularly. Additionally, it is necessary to explain for the internal auditors the risks, which are embedded in the system of information technology.


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.


2019 ◽  
Vol 17 (3) ◽  
pp. 1-15 ◽  
Author(s):  
Paweena Wanchai

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.


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.


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 ◽  
Vol 7 (2) ◽  
pp. 34-49 ◽  
Author(s):  
Mohan P. Rao ◽  
Purnendu Mandal

Implementing IT (information technology) systems such as ERP (enterprise resource planning) requires huge investments. Measuring the impact of these investments on productivity and profitability is extremely important for business managers. Many studies have failed to show the direct relationship between IT investments, organizational productivity and profitability, a phenomenon known as productivity paradox. The failure might relate to problems with the measurement techniques. This paper describes a measurement model, known as the PPP model (“Profitability = Productivity + Price Recovery”), that can fill the gap and show a link between IT investments, productivity, and profitability. The spreadsheet-based implementation of the PPP model, using multi-period data, generates performance trend charts of productivity, price recovery, and profitability. These performance charts provide a multi-period perspective to managers in identifying and understanding the impact of IT investments. This model is useful to managers considering heavy investments in IT as well as for managers interested in assessing their organizational performance and taking corrective actions in a timely manner.


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