Examine the influence of Enterprise Resource Planning Quality Dimensions on Organizational Performance Mediated through Business Process Change Capability

Examine the influence of Enterprise Resource Planning Quality Dimensions on Organizational Performance Mediated through Business Process Change Capability

Authors

  • Atif Ali Gill Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia
  • Arfan Shahzad Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia
  • Subramaniam Sri Ramalu Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia

DOI:

https://doi.org/10.32890/gbmr2018.10.2.11046

Abstract

This study examines the influence of enterprise resource planning (ERP) quality dimensions on organizational performance using the theoretical lens of dynamic capability theory by taking business process change capability as a mediator in the relationship of ERP system quality dimensions and Organizational Performance. Respondents were information technology (IT) managers from firms using ERP system in Pakistan. Statistical analysis was carried using variance based partial least square (PLS) method. The results revealed the business process change capability mediates the relationship between ERP quality dimensions and organizational performance. This research provides practical as well as theoretical implications by highlighting the business change capabilities in translating ERP system quality into enhanced organizational performance.

Downloads

Download data is not yet available.

References

Ahmed, N., A., A., & Sarim, M. (2017). Critical Success Factors Plays a Vital Role in ERP Implementation in Developing Countries: An Exploratory Study in Pakistan. International Journal of Advanced Computer Science and Applications, 8(10). https://doi.org/10.14569/IJACSA.2017.081004
Alraddadi, A., Champion, D., & Lagna, A. (2018). The Role of Workarounds in Benefits Realisation: Evidence from a Field Study in Saudi Arabia.
Ambrosini, V., & Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic management? International Journal of Management Reviews, 11(1), 29–49.
Asamoah, D., & Andoh-Baidoo, F. K. (2018). Antecedents and Outcomes of Extent of ERP Systems Implementation in the Sub-Saharan Africa Context: A Panoptic Perspective. Communications of the Association for Information Systems, 42(1), 22.
Badewi, A., Shehab, E., Zeng, J., & Mohamad, M. (2018). ERP benefits capability framework: orchestration theory perspective. Business Process Management Journal, 24(1), 266–294. Balasubramanian, K., & Selladurai, V. (2018). Contemporary ERP solution to Indian small and medium
scale enterprises through constructive performance metrics. International Journal of Business
Excellence, 15(4), 445–466.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1),
99–120.
Baskaran, R. (2018). An Empirical Study on determining the critical success factors for the
implementation of Hybrid Cloud ERP system in IT Organizations.
Cain, M. K., Zhang, Z., & Yuan, K.-H. (2017). Univariate and multivariate skewness and kurtosis for
measuring nonnormality: Prevalence, influence and estimation. Behavior Research Methods,
49(5), 1716–1735. https://doi.org/10.3758/s13428-016-0814-1
Delone, W. H., & McLean, E. R. (2003). The DeLone and McLean model of information systems
success: a ten-year update. Journal of Management Information Systems, 19(4), 9–30.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables
and measurement error. Journal of Marketing Research, 39–50.
Gupta, S., Misra, S. C., Kock, N., & Roubaud, D. (2018). Organizational, technological and extrinsic
factors in the implementation of cloud ERP in SMEs. Journal of Organizational Change Management, 31(1), 83–102.Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications.
Hair Jr, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2017). Advanced issues in partial least squares structural equation modeling. SAGE Publications.
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., & Winter, S. G. (2009). Dynamic capabilities: Understanding strategic change in organizations. John Wiley & Sons.
Ifinedo, P. (2007). An empirical study of ERP success evaluations by business and IT managers. Information Management & Computer Security, 15(4), 270–282.
Jr, J. F. H., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications.
Kwak, D.-W., Seo, Y.-J., & Mason, R. (2018). Investigating the relationship between supply chain innovation, risk management capabilities and competitive advantage in global supply chains. International Journal of Operations & Production Management, 38(1), 2–21.
Liao, L.-M., Huang, C.-J., & Lin, X.-Y. (2018). Applying Project Management Perspective for ERP Implementation: A Case Study. Proceedings of Engineering and Technology Innovation, 8, 40– 45.
Ma’arif, M. Y., & Satar, N. S. M. (2018). ERP Training Mechanism for Upskilling Users and Optimization of ERP System. Advanced Science Letters, 24(4), 2908–2912.
Mihailescu, D., Mihailescu, M., & Carlsson, S. (2018). Instantiations of an ERP Implementation Methodology: A Critical Realist Case Study.
Nandi, M. L., & Vakkayil, J. (2018). Absorptive capacity and ERP assimilation: the influence of company ownership. Business Process Management Journal, 24(3), 695–715.
Olson, D. L., Johansson, B., & De Carvalho, R. A. (2018). Open source ERP business model framework. Robotics and Computer-Integrated Manufacturing, 50, 30–36.
Priem, R. L., & Butler, J. E. (2001). Is the resource-based “view” a useful perspective for strategic management research? Academy of Management Review, 26(1), 22–40.
Protogerou, A., Caloghirou, Y., & Lioukas, S. (2011). Dynamic capabilities and their indirect impact on firm performance. Industrial and Corporate Change, 21(3), 615–647.
Queiroz, M., Tallon, P. P., Sharma, R., & Coltman, T. (2018). The role of IT application orchestration capability in improving agility and performance. The Journal of Strategic Information Systems, 27(1), 4–21.
Rouhani, S., & Mehri, M. (2018). Empowering benefits of ERP systems implementation: empirical study of industrial firms. Journal of Systems and Information Technology, 20(1), 54–72.
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
Thomas, P. Y., Mmereki, R. N., & Boy, R. L. (2018). Evaluation of an Academic and Student Administration System in its Post-Implementation Phase: A Case Study at the University of Botswana. International Journal of Enterprise Information Systems (IJEIS), 14(3), 79–90.
Ullah, A., Baharun, R. B., Nor, K., & Yasir, M. (2018). Overview of Enterprise Resource Planning (ERP) System in Higher Education Institutions (HEIs). Advanced Science Letters, 24(6), 4399–4406.
Wixom, B. H., & Watson, H. J. (2001). An empirical investigation of the factors affecting data warehousing success. MIS Quarterly, 17–41.
Xu, W., Ou, P., & Fan, W. (2017). Antecedents of ERP assimilation and its impact on ERP value: A TOE-based model and empirical test. Information Systems Frontiers, 19(1), 13–30.

Downloads

Published

11-08-2020

How to Cite

Gill, A. A., Shahzad, A., & Sri Ramalu, S. (2020). Examine the influence of Enterprise Resource Planning Quality Dimensions on Organizational Performance Mediated through Business Process Change Capability. Global Business Management Review (GBMR), 10(2), 41–57. https://doi.org/10.32890/gbmr2018.10.2.11046
Loading...