Enterprise Resource Planning (ERP) systems success: impact of employees’ perceptions and satisfaction on expected benefits in a manufacturing setting
-
Author(s)Vukani Cosmos XuluLink to ORCID Index: https://orcid.org/0000-0001-8864-5492
,
Sachin SuknunanLink to ORCID Index: https://orcid.org/0000-0002-7296-8059
-
DOIhttp://dx.doi.org/10.21511/ppm.18(2).2020.38
-
Article InfoVolume 18 2020, Issue #2, pp. 466-475
- 1492 Views
-
484 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The benefits that Enterprise Resource Planning (ERP) systems can offer organizations are the primary reason behind their popularity. However, employees` satisfaction is one of the factors that affect ERP system benefits, while employees` expectations of such systems affect their satisfaction. The study aimed to identify and investigate how employees’ expectations of the general benefits from ERP systems influence employees` satisfaction and actual benefits derived. The study was performed in a manufacturing organization, and data collection entailed a quantitative questionnaire, targeting an entire population of 80 employees (ERP users). The study obtained a 66% response rate, and quantitative data analysis techniques were used. The study found out that users with high expectations were more dissatisfied and not benefiting from the ERP system compared to those with low expectations. Users with more experience did not find the ERP system very challenging compared to the users who had less experience. The Chi-square test of independence implied that the general expectations that users had on ERP systems did not affect their satisfaction (7.965, p = 0.241). Besides, there was a relationship between general expected benefits from an ERP system and the actual benefits of using it (19.342, p < 0.013). Furthermore, a moderate and significant relationship between actual benefits derived and user satisfaction was found (.451**, p < 0.001). The study concludes that there is a relationship between employees’ expected benefits, employees` satisfaction, and actual benefits derived from ERP systems.
- Keywords
-
JEL Classification (Paper profile tab)M15, D25, E22
-
References27
-
Tables4
-
Figures3
-
- Figure 1. Conceptual framework developed from DeLone and McLean IS success model
- Figure 2. General expectations perceived and actual benefits derived
- Figure 3. General expectations and user satisfaction
-
- Table 1. Total variance explained
- Table 2. Chi-square tests between general expected benefits and user satisfaction
- Table 3. Chi-square tests between general expected benefits and actual benefits
- Table 4. Correlations matrix
-
- Abd Elmonem, M. A., Nasr, E. S., & Geith, M. H. (2016). Benefits and challenges of cloud ERP systems – A systematic literature review. Future Computing and Informatics Journal, 1(1-2), 1-9.
- Aggelidis, V. P., & Chatzoglou, P. D. (2012). Hospital information systems: measuring end user computing satisfaction (EUCS). Journal of Biomedical Informatics, 45(3), 566-579.
- Al-Jabri, I. M. (2015). Antecedents of user satisfaction with ERP systems: mediation analyses. Kybernetes, 44(1), 107-123.
- Al-Jabri, I. M., & Roztocki, N. (2015). Adoption of ERP systems: Does information transparency matter? Telematics and Informatics, 32(2), 300-310.
- Australian Bureau of Statistics (ABS). (2013). Census and Sample.
- Babaei, M., Gholami, Z., & Altafi, S. (2015). Challenges of Enterprise Resource Planning implementation in Iran large organizations. Information Systems, 54, 15-27.
- Badewi, A., & Shehab, E. (2016). The impact of organizational project benefits management governance on ERP project success: Neo-institutional theory perspective. JPMA International Journal of Project Management, 34(3), 412-428.
- Badewi, A., Shehab, E., Zeng, J., & Mohamad, M. (2017). ERP Benefits Capability Framework: Orchestration Theory Perspective. Business Process Management Journal, 24(1), 266-294.
- 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.
- Dwivedi, Y. K., Wastell, D., Laumer, S., Henriksen, H. Z., Myers, M. D., Bunker, D., Elbanna, A., Ravishankar, M. N., & Srivastava, S. C. (2015). Research on information systems failures and successes: Status update and future directions. Information Systems Frontiers, 17(1), 143-157.
- Esteves, J. (2009). A benefits realisation road-map framework for ERP usage in small and medium-sized enterprises. Journal of Enterprise Information Management, 22(1-2), 25-35.
- Farooq, U. (2013). What is Census Method of Data Collection, Advantages & Disadvantages.
- Kadir, R. A., Ismail, N. A., & Yatin, S. F. M. (2015). The Benefits of Implementing ERP System in Telecommunications. Procedia – Social and Behavioral Sciences, 211, 1216-1222.
- Kanellou, A., & Spathis, C. (2013). Accounting benefits and satisfaction in an ERP environment. International Journal of Accounting Information Systems, 14(3), 209-234.
- Lavrakas, P. J. (2008). Encyclopedia of Survey Research Methods. SAGE Publications, Inc.
- Maier, C., Laumer, S., & Weinert, C. (2015). Enterprise resource planning systems induced stress: a comparative empirical analysis with young and elderly SAP users. In Wirtschaftsinformatik Proceedings (pp. 1391-1406).
- May, J., Dhillon, G. & Caldeira, M. 2013. Defining value-based objectives for ERP systems planning. Decision Support Systems, 55(1), 98-109.
- Mitakos, T., Almaliotis, I., & Demerouti, A. (2010). An Auditing Approach for ERP Systems Examining Human Factors that Influence ERP User Satisfaction. Informatica Economica, 14(1), 78-92.
- Rahman, M. S. (2016). The Advantages and Disadvantages of Using Qualitative and Quantitative Approaches and Methods in Language “Testing and Assessment” Research: A Literature Review. Journal of Education and Learning, 6(1), 102-112.
- Rana, N. P., Dwivedi, Y. K., Williams, M. D., & Weerakkody, V. (2015). Investigating success of an e-government initiative: Validation of an integrated IS success model. Information Systems Frontiers, 17, 127-142.
- Salahuddin, L., & Ismail, Z. (2015). Classification of antecedents towards safety use of health information technology: A systematic review. International Journal of Medical Informatics, 84(11), 877-891.
- Shan, S., Li, C., Yao, W., Shi, J., & Ren, J. (2014). An Empirical Study on Critical Factors Affecting Employee Satisfaction. Systems Research and Behavioral Science, 31(3), 447-460.
- Steinhueser, M., Richter, A., & Smolnik, S. (2015). How to bridge the boundary? Determinants of inter-organizational social software usage. Electron Markets, 25, 267-281.
- Teittinen, H., Pellinen, J., & Järvenpää, M. (2013). ERP in action Challenges and benefits for management control in SME context. International Journal of Accounting Information Systems, 14(4), 278-296.
- Vaezi, R., Mills, A., Chin, W., & Zafar, H. (2016). User Satisfaction Research in Information Systems: Historical Roots and Approaches. Communications of the Association for Information Systems, 38, 501-532.
- Venkataiah, D., & Sagi, S. (2012). Relationship between Kaizen Events and Perceived Quality Performance in Indian Automobile Industry. International Journal of Management & Business Studies, 2(1), 25-28.
- Yilmaz, K. (2013). Comparison of quantitative and qualitative research traditions: Epistemological, theoretical, and methodological differences. European Journal of Education, 48(2), 311-325.
-
The resource-based view: a tool of key competency for competitive advantage
Akwesi Assensoh-Kodua
doi: http://dx.doi.org/10.21511/ppm.17(3).2019.12
Problems and Perspectives in Management Volume 17, 2019 Issue #3 pp. 143-152 Views: 4822 Downloads: 1108 TO CITE АНОТАЦІЯThe increasing turmoil in the external organizational setting or business environment has focused attention on capabilities and resources as the primary source of competitive advantage. Obviously, this statement points to the application of the resource-based view (RBV) of organizational management. Nevertheless, what constitutes RBV remains an illusion in many quarters of organizational management, as scholars have managed to put up their personal ideas, and managed to converge on phenomenon-driven theories, in addition to RBV. This paper reviews the concepts of RBV in light of knowledge management to highlight some critical pitfalls that might have eluded the research community on the subject matter of RBV. To this end, this paper’s educational value lies in the fact that it simplifies the concept of RBV to the new researcher in a fashion that is capable of appealing to his or her level. A cross-sectional qualitative research approach was employed in an effort aimed at understanding the role of RBV in creating a sustainable competitive advantage and key competencies. A total of 20 relevant articles were searched from different databases and search engines, including Scopus, EBSCO, ABI Inform, IEEE, PubMed, Science Direct, SABINET, IEEE, Bing, Science Direct, and Google Scholar. The findings indicate that RBV plays an important role and assists organizations not only create, nurture, and maintain competitive advantage, but also understand the collective resources needed to compete favorably in a globalized and highly competitive market. With expert knowledge workers at its core to provide support for knowledge creation, sharing, and utilization, the RBV principles discussed in this paper promise to guarantee a methodological step geared towards the achievement of competitive advantage. It, therefore, makes an incremental contribution to the RBV to attain modest improvement in organizational settings.
-
Modelling of capital structure in relation to business performance maximization
Jarmila Horvathova 
,
Martina Mokrisova ,
Lucia Dancisinova
doi: http://dx.doi.org/10.21511/imfi.15(2).2018.26
Investment Management and Financial Innovations Volume 15, 2018 Issue #2 pp. 292-304 Views: 2375 Downloads: 389 TO CITE АНОТАЦІЯThe aim of the article was to find out the optimal capital structure of the companies in relation to their maximum performance. To reach this aim, the data of the companies operating in the field of heat industry of the Slovak Republic were used. As the first method, a correlation matrix was applied. It was found out that there is statistically significant relationship between capital structure indicators and performance of the companies. Due to the lack of data in time series, the authors were not able to apply multiple regression model to assess the impact of these indicators on performance. Therefore, a method of modelling was used to analyze the impact of the change in capital structure on performance. Modelling was based on the principle of a gradual change in the capital structure in favor of debt. By the increase in debt, it was confirmed that there was a change in the values of selected indicators. In the course of analysis, it was confirmed that the value of EVA equity increased with the rising indebtedness by which the proposition I of the modified MM theory was supported. The performance expressed by EVA entity indicator is at its minimum when the capital structure is 90:10 in favor of equity. By increasing the debt, EVA entity rises. Based on these results, it can be stated that the performance of selected companies increases when the share of debt also rises, even when taking into account the rising financial risks.
-
Relationship between bank competition and stability: the case of the UK
Alau Zhanbolatova , Sayabek Ziyadin ,
Kairat Zhumanov ,
Almagul Jumabekova
doi: http://dx.doi.org/10.21511/bbs.13(1).2018.10
Banks and Bank Systems Volume 13, 2018 Issue #1 pp. 98-114 Views: 1841 Downloads: 365 TO CITE АНОТАЦІЯThere is no consensus in theoretical and empirical studies about the relationship between bank competition and stability. This research aims to investigate the relationship between bank competition and stability in the UK. The analysis has been done on a large sample of UK banks for the period 2004–2014. There is quite contrasting evidence on the bank competition and bank soundness relationship. A unified framework has been developed to assess how different factors may make it more likely that the data favor one theory over another. The results suggest that in some cases a U-shaped relationship exists between bank competition and stability. Therefore the conclusion is that in order to protect the bank from different risk exposures a moderate level of bank competition is needed.
