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The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies

Purpose– This research aims to improve supply chain management performance through the successful usage of ERP system. This can be through investigating the relationship between enterprise resource planning (ERP) system and supply chain management (SCM) performance in the context of Malaysian manufa...

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Main Authors: Shatat, Ahmad Saleh, Mohamed Udin, Zulkifli
Format: Article
Language:English
Published: Emerald Group Publishing Limited 2012
Subjects:
TS Manufactures
Online Access:http://repo.uum.edu.my/16759/1/10.pdf
http://repo.uum.edu.my/16759/
http://doi.org/10.1108/17410391211272847
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spelling my.uum.repo.167592016-04-21T02:36:32Z http://repo.uum.edu.my/16759/ The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies Shatat, Ahmad Saleh Mohamed Udin, Zulkifli TS Manufactures Purpose– This research aims to improve supply chain management performance through the successful usage of ERP system. This can be through investigating the relationship between enterprise resource planning (ERP) system and supply chain management (SCM) performance in the context of Malaysian manufacturing companies that use ERP system.Design/methodology/approach – The questionnaire survey was posted to the Malaysian manufacturing companies that are using ERP system in order to investigate the relationship between ERP system and SCM performance. The respondents of this study were the MIS or IT executives. A total of 80 usable responses were received and used in the analysis. Findings– The findings of this research indicated that there is a positive and significant relationship between ERP system i.e. (integration, material management, production planning, and controlling), and SCM performance.The workflow management, however, does not have a significant relationship with SCM performance.The findings of this study imply that the successful implementation and the effective usage of ERP system can contribute toward enhancing supply chain management performance in many ways such as, integration of internal business processes, enhancement of information flow among different departments inside the company, improvement of the company's relationships and collaboration with outsourcing suppliers, customers, and supply chain partners.Research limitations/implications – This research focuses only on post-implementation of ERP system life cycle, where ERP system passes through three implementation stages of system life cycle and that includes pre‐implantation stage, implementation stage, and finally post‐implementation stage. Two or three stages of ERP system life cycle could be investigated simultaneously.Practical implications – There should be many success records in ERP system and this is to prove to companies that ERP systems can contribute toward improving their overall business performance.Therefore, this research encourages companies to adopt ERP systems and then contribute to technology diffusion. The finding of this study supports this justification and records a new success of ERP systems in Malaysian manufacturing companies. Originality/value – The results of this study will enable companies to achieve optimum usage of ERP system after the implementation stage and help to avoid system failure and achieve better SCM performance. The study contributes toward technology diffusion between companies through reducing the likelihood of ERP systems failure, and therefore introduces ERP systems to other manufacturing companies in Malaysia. Emerald Group Publishing Limited 2012 Article PeerReviewed application/pdf en http://repo.uum.edu.my/16759/1/10.pdf Shatat, Ahmad Saleh and Mohamed Udin, Zulkifli (2012) The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies. Journal of Enterprise Information Management, 25 (6). pp. 576-604. ISSN 1741-0398 http://doi.org/10.1108/17410391211272847 doi:10.1108/17410391211272847
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic TS Manufactures
spellingShingle TS Manufactures
Shatat, Ahmad Saleh
Mohamed Udin, Zulkifli
The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies
description Purpose– This research aims to improve supply chain management performance through the successful usage of ERP system. This can be through investigating the relationship between enterprise resource planning (ERP) system and supply chain management (SCM) performance in the context of Malaysian manufacturing companies that use ERP system.Design/methodology/approach – The questionnaire survey was posted to the Malaysian manufacturing companies that are using ERP system in order to investigate the relationship between ERP system and SCM performance. The respondents of this study were the MIS or IT executives. A total of 80 usable responses were received and used in the analysis. Findings– The findings of this research indicated that there is a positive and significant relationship between ERP system i.e. (integration, material management, production planning, and controlling), and SCM performance.The workflow management, however, does not have a significant relationship with SCM performance.The findings of this study imply that the successful implementation and the effective usage of ERP system can contribute toward enhancing supply chain management performance in many ways such as, integration of internal business processes, enhancement of information flow among different departments inside the company, improvement of the company's relationships and collaboration with outsourcing suppliers, customers, and supply chain partners.Research limitations/implications – This research focuses only on post-implementation of ERP system life cycle, where ERP system passes through three implementation stages of system life cycle and that includes pre‐implantation stage, implementation stage, and finally post‐implementation stage. Two or three stages of ERP system life cycle could be investigated simultaneously.Practical implications – There should be many success records in ERP system and this is to prove to companies that ERP systems can contribute toward improving their overall business performance.Therefore, this research encourages companies to adopt ERP systems and then contribute to technology diffusion. The finding of this study supports this justification and records a new success of ERP systems in Malaysian manufacturing companies. Originality/value – The results of this study will enable companies to achieve optimum usage of ERP system after the implementation stage and help to avoid system failure and achieve better SCM performance. The study contributes toward technology diffusion between companies through reducing the likelihood of ERP systems failure, and therefore introduces ERP systems to other manufacturing companies in Malaysia.
format Article
author Shatat, Ahmad Saleh
Mohamed Udin, Zulkifli
author_facet Shatat, Ahmad Saleh
Mohamed Udin, Zulkifli
author_sort Shatat, Ahmad Saleh
title The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies
title_short The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies
title_full The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies
title_fullStr The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies
title_full_unstemmed The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies
title_sort relationship between erp system and supply chain management performance in malaysian manufacturing companies
publisher Emerald Group Publishing Limited
publishDate 2012
url http://repo.uum.edu.my/16759/1/10.pdf
http://repo.uum.edu.my/16759/
http://doi.org/10.1108/17410391211272847
_version_ 1644282053561155584
score 13.211869

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