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Determinants of enterprise resource planning adoption on organizations' performance among medium enterprises

Background: Enterprise Resource Planning (ERP) is a method of using computer system technology to integrate all functions in various departments, such as marketing, inventory control, accounting and human resource across an entire company. ERP system intends to facilitate information sharing, busin...

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Main Authors: Aremu, Adejare Yusuff, Shahzad, Arfan, Hassan, Shahizan
Format: Article
Language:English
Published: 2018, 14 (2), 245-255 2018
Subjects:
HD28 Management. Industrial Management
Online Access:http://repo.uum.edu.my/26908/1/LF%2014%202%202018%20245%20255.pdf
http://repo.uum.edu.my/26908/
https://yadda.icm.edu.pl/baztech/element/bwmeta1.element.baztech-1d1677a2-5ada-4c9e-8709-f45dc608b569
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spelling my.uum.repo.269082020-03-16T01:20:42Z http://repo.uum.edu.my/26908/ Determinants of enterprise resource planning adoption on organizations' performance among medium enterprises Aremu, Adejare Yusuff Shahzad, Arfan Hassan, Shahizan HD28 Management. Industrial Management Background: Enterprise Resource Planning (ERP) is a method of using computer system technology to integrate all functions in various departments, such as marketing, inventory control, accounting and human resource across an entire company. ERP system intends to facilitate information sharing, business planning, and decision making in enterprises organization. This study proposes a theoretical framework that will determine the factors affecting ERP system adoption among medium-sized enterprise firms based on a case study. Methods: This present study applied resource based value and contingency theories to explain the factors that affect ERP system adoption and firm’s performance. The study proposes a framework which was prepared on the basis of results obtained from the questionnaire research. The specially prepared questionnaire was distributed to 217 companies of various medium sizes, located in Oyo State, Nigeria. CEO / MD and managers were selected as the key respondents of the questionnaire. After the completion of data collection, the empirical data were analyzed using the Partial Least Squares Structural Equation modelling.Results: The result reveals that organizational structure and technological change have a significant influence on the adoption of the ERP system to improve the performance of medium size enterprise firms. In this regard, the effectiveness of ERP system adoption would strongly affect a firm’s performance. Conclusions: This paper proposes an enhanced theoretical framework that examines the vital issues concerning ERP system factors of adoption, thus, providing valuable outcomes for medium-sized enterprise firms. The originality of the paper is supported by its three-dimensional approach. 2018, 14 (2), 245-255 2018 Article PeerReviewed application/pdf en http://repo.uum.edu.my/26908/1/LF%2014%202%202018%20245%20255.pdf Aremu, Adejare Yusuff and Shahzad, Arfan and Hassan, Shahizan (2018) Determinants of enterprise resource planning adoption on organizations' performance among medium enterprises. LogForum, 14 (2). pp. 245-256. ISSN 1895-2038 https://yadda.icm.edu.pl/baztech/element/bwmeta1.element.baztech-1d1677a2-5ada-4c9e-8709-f45dc608b569
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HD28 Management. Industrial Management
spellingShingle HD28 Management. Industrial Management
Aremu, Adejare Yusuff
Shahzad, Arfan
Hassan, Shahizan
Determinants of enterprise resource planning adoption on organizations' performance among medium enterprises
description Background: Enterprise Resource Planning (ERP) is a method of using computer system technology to integrate all functions in various departments, such as marketing, inventory control, accounting and human resource across an entire company. ERP system intends to facilitate information sharing, business planning, and decision making in enterprises organization. This study proposes a theoretical framework that will determine the factors affecting ERP system adoption among medium-sized enterprise firms based on a case study. Methods: This present study applied resource based value and contingency theories to explain the factors that affect ERP system adoption and firm’s performance. The study proposes a framework which was prepared on the basis of results obtained from the questionnaire research. The specially prepared questionnaire was distributed to 217 companies of various medium sizes, located in Oyo State, Nigeria. CEO / MD and managers were selected as the key respondents of the questionnaire. After the completion of data collection, the empirical data were analyzed using the Partial Least Squares Structural Equation modelling.Results: The result reveals that organizational structure and technological change have a significant influence on the adoption of the ERP system to improve the performance of medium size enterprise firms. In this regard, the effectiveness of ERP system adoption would strongly affect a firm’s performance. Conclusions: This paper proposes an enhanced theoretical framework that examines the vital issues concerning ERP system factors of adoption, thus, providing valuable outcomes for medium-sized enterprise firms. The originality of the paper is supported by its three-dimensional approach.
format Article
author Aremu, Adejare Yusuff
Shahzad, Arfan
Hassan, Shahizan
author_facet Aremu, Adejare Yusuff
Shahzad, Arfan
Hassan, Shahizan
author_sort Aremu, Adejare Yusuff
title Determinants of enterprise resource planning adoption on organizations' performance among medium enterprises
title_short Determinants of enterprise resource planning adoption on organizations' performance among medium enterprises
title_full Determinants of enterprise resource planning adoption on organizations' performance among medium enterprises
title_fullStr Determinants of enterprise resource planning adoption on organizations' performance among medium enterprises
title_full_unstemmed Determinants of enterprise resource planning adoption on organizations' performance among medium enterprises
title_sort determinants of enterprise resource planning adoption on organizations' performance among medium enterprises
publisher 2018, 14 (2), 245-255
publishDate 2018
url http://repo.uum.edu.my/26908/1/LF%2014%202%202018%20245%20255.pdf
http://repo.uum.edu.my/26908/
https://yadda.icm.edu.pl/baztech/element/bwmeta1.element.baztech-1d1677a2-5ada-4c9e-8709-f45dc608b569
_version_ 1662757793615052800
score 13.211869

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