Enterprise Systems Adoption and Firm Performance in Europe: The Role of Innovation

Despite the ubiquitous proliferation and importance of Enterprise Systems (ES), little research exists on their post-implementation impact on firm performance, especially in Europe. This paper provides representative, large-sample evidence on the differential effects of different ES types on performance of European enterprises. It also highlights the mediating role of innovation in the process of value creation from ES investments. Empirical data on the adoption of Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM), Knowledge Management System (KMS), and Document Management System (DMS) is used to investigate the effects on product and process innovation, revenue, productivity and market share growth, and profitability. The data covers 29 sectors in 29 countries over a 5-year period. The results show that all ES categories significantly increase the likelihood of product and process innovation. Most of ES categories affect revenue, productivity and market share growth positively. Particularly, more domainspecific and simpler system types lead to stronger positive effects. ERP systems decrease the profitability likelihood of the firm, whereas other ES categories do not show any significant effect. The findings also imply that innovation acts as a full or partial mediator in the process of value creation of ES implementations. The direct effect of enterprise software on firm performance disappears or significantly diminishes when the indirect effects through product and process innovation are explicitly accounted for. The paper highlights future areas of research.Enterprise Systems; ERP; SCM; CRM; KMS; DMS; IT Adoption; Post-implementation Phase; IT Business Value; Innovation; Firm Performance; Europe

How do supply chain management and information systems practices influence operational performance?:Evidence from emerging country SMEs

This study first provides a comparative analysis of the impact of supply chain management (SCM) and information systems (IS) practices on operational performance (OPER) of small- and medium-sized enterprises (SMEs) operating in two neighbouring emerging country markets of Turkey and Bulgaria. Then, we investigate moderating effects of both SCM–IS-linked enablers and inhibitors on the links between SCM and IS practices and OPER of SMEs. To this end, we first empirically identify the underlying dimensions of SCM and IS practices, and SCM–IS-related enabling and inhibiting factors. Second, a series of regression analyses are undertaken to estimate the impact of the study's constructs on OPER of SMEs. The results are discussed comparatively within the contexts of both Turkish and Bulgarian SMEs and beyond. The study makes a significant contribution to the extant literature through obtaining and analysing cross-national survey data of SCM and IS practices in emerging country markets

Impact of Integration of Manufacturaing Planning and Control Systems on Supply Chain Management

Manufacturing planning and control systems (MPCSs, for short) are an essentialelement for supply chain processes today. However, there are few researches whichinclude planning information systems in supply chain models and optimize the wholestructure holistically in spite of the social importance of MPCSs for supply chainmanagement. At present, we do not have any ideas even about process behaviorwhen organizations which have MPCSs are linked in a supply chain. To clarifyfundamental properties of supply chain structures including planning informationsystems are tasks of big challenges as well as pressing urgencies. While planninginformation systems and practical activities have been told individually in manyresearches, they should be dealt holistically as a system. This research aims at theingegration of planning systems and practical activities to optimize whole supplychain structures. Actual supply chain processes have million considerable parameters,and they interact each other. It is too complex to deal, so we simplified supplychain processes focusing on interaction between material flow and information flow inthis paper. Firstly we suggested the supply chain process model, and then dynamicproperties of the process are shown. Analyses of the behavior implies managementcapability and limits of the MPCSs. Furthermore, a way of optimization for thesupply chain structure and the effects are shown

THE SUPPLY CHAIN MANAGEMENT AND INFORMATION SHARING AS ANTECEDENTS OF OPERATIONAL PERFORMANCE: A CASE OF SMEs

Purpose: The basic purpose of this research is to analyze the interactive impact of IS and SCM practices factors which enable and inhibit SCM-IS on the OPER of SMEs in EC. Methodology: The key dimensions of IS and SCM practices are attempted to be identified by this research study along with the inhibiting and enabling factors related to SCM-IS. Moreover, the study is based on a set of research hypothesis, which are tested and the findings are comparatively discussed specifically to the SMEs working in Indonesia. Results: The role of practices related to IS and SCM as well as inhibitors and enablers of SCM-IS in OPER of SMEs in Emerging Countries has been examined timely relying on data obtained from executives of SMEs. The research contributes to the identified research gap on IS and SCM practices in a comparative aspect. Therefore, the study is among the pioneering studies on the issues. So, the current study has used SEM-PLS as a statistical tool to answer the research questions raised in this study and research objectives envisaged in the current study

Ambidexterity: The Interplay of Supply Chain Management Competencies and Enterprise Resource Planning Systems on Organizational Performance

Understanding the business value of information systems (IS) is one of the key issues among practitioners. Specifically, the role of IS in supply chain management (SCM) is one of the main areas that practitioners focus, as the largest portion of production costs are traceable back to supply chain costs. Hence, inter-organizational systems (IOS) gain importance as a result of the increased competition between supply chain networks. Particularly, implementation of enterprise resource planning (ERP), which is a type of IOS, becomes the new trend among organizations. Although organizations use similar ERP, some gained significant benefits by using them, while others struggled to achieve the same level of success. The performance differences among ERP using organizations illustrate that ERP accrues several indirect benefits to organizational performance via intermediating organizational capabilities. SCM explorative and exploitative competencies are two such capabilities. Although, previous research indicates that ERP needs to be supported by mature SCM processes to maximize the benefits of ERP, there is still a lack of knowledge of how ERP is used to improve SCM competencies and increase performance. Thus, the goal of this study is to evaluate the indirect benefits that accrue to organizations via the mediating effect of SCM competencies on the relationship between effective ERP usage for SCM and organizational performance. Customer relationship management (CRM), customer service management (CSM), supplier relationship management (SRM) are adopted as the three key ERP based SCM processes, and profitability, market value, and productivity are utilized as the three main aspects of overall organizational performance. PLS-SEM is used to investigate this relationship. Overall, this dissertation demonstrates that effective ERP usage for SCM improves SCM competencies, which leads to higher organizational performance. Specifically, the results suggest that although effective ERP usage for CRM is related to both SCM explorative and exploitative competence, effective ERP usage for CSM experience better SCM explorative competence, and effective ERP usage achieves better SCM exploitative competence. The results also indicate that, while SCM exploitative competence influences all three aspects of organizational performance, SCM explorative competence affects only the market value and organizations that manage to balance SCM explorative and exploitative competence efforts outperform their competitors

Enterprise Systems Adoption and Firm Performance in Europe: The Role of Innovation

Despite the ubiquitous proliferation and importance of Enterprise Systems (ES), little research exists on their performance impact, especially in Europe. This paper provides large-sample, economy-wide evidence on the differential effects of enterprise systems on performance of European enterprises. It also highlights the important mediating role of innovation in the process of value creation from ES investments. This study uses data on the adoption of ERP (Enterprise Resource Planning), SCM (Supply Chain Management), CRM (Customer Relationship Management), KMS (Knowledge Management System), and DMS (Document Management System) and investigates the effects on product and process innovation, revenue, productivity and market share growth, and profitability. The results show that all ES categories significantly contribute to product and process innovation. Most of ES categories affect revenue, productivity and market share growth positively. More domain-specific and simpler system types lead to stronger positive effects. None of ES categories contribute to profitability likelihood. The findings imply that innovation acts as a full or partial mediator in the relationship between ES adoption and firm performance

The influence of customer integration, integrated information technology, and relationship commitment on performance: a mediating and moderating analysis in supply chain management context

Esta investigación amplía el creciente cuerpo de la literatura sobre la integración de la cadena de suministro. A partir de diferentes teorías, desarrollamos hipótesis que proponen relaciones positivas entre la tecnología de información integrada, la integración de clientes, el compromiso relacional y el rendimiento financiero. Además, investigamos los roles complementarios del tamaño del departamento de TI y el apoyo de la alta dirección. Los resultados a partir de una muestra de 205 empresas de Egipto indican que la tecnología de información integrada y la integración de clientes pueden mejorar el rendimiento financiero. Adicionalmente, los resultados muestran un efecto mediador positivo de la integración de clientes en la relación entre tecnología de información integrada y el rendimiento financiero. Además, se confirma que el tamaño del departamento de TI y el apoyo de la alta dirección están relacionados significativamente con la tecnología de información integrada. Finalmente, nuestros resultados también muestran un efecto positivo directo del compromiso relacional en la integración de clientes, así como un efecto moderador positivo del compromiso relacional en la relación entre la tecnología de información integrada y la integración de clientes.This research extends the developing body of literature on supply chain integration. Theorizing from the supply chain integration literatures, we develop hypotheses proposing direct, mediating, and moderating relations between integrated information technology, customer integration, relationship commitment, and financial performance. Also, we investigate the complementary roles of IT department size and top management support. Our findings from a sample of 205 firms in Egypt indicate that integrated information technology and customer integration can improve financial performance. In addition, our results show a mediating and positive effect of customer integration on the relation between integrated information technology and financial performance. Also, information technology department size and top management support are significantly related to integrated information technology. Finally, our results also show a direct and positive effect of relationship commitment on the customer integration, and a moderating and positive effect of relationship commitment on the relationship between integrated information technology and customer integration

Impact of Supply Chain Integration in Enterprise Resource Planning Systems that Affect Company Performance

PT Sumber Graha Sejahtera, Way Kanan, Lampung often experiences unfulfilled production targets and customer demands. Many customers give complaints because the number of products sent by the company does not match the desired amount. The purpose of this study was to determine the direct effect of the ERP system on company performance, and the indirect effect of the ERP system on company performance mediated by supplier integration, internal integration, and customer integration. This research uses quantitative methods. The population in this study were all employees at PT Sumber Graha Sejahtera, Way Kanan, Lampung, totaling 340 people. The sample size was calculated using the Yamane and Isaac formula which resulted in 184 employees. Samples were taken using purposive sampling technique. The data analysis technique used is Structural Equation Modeling (SEM)-Partial Least Square (PLS). The results of the study show that ERP has a direct, significant effect on firm performance. In addition, ERP has no significant effect on firm performance through supplier integration, internal integration and customer integration. PT Sumber Graha Sejahtera must improve the management of management resources well, increase performance improvement, and build business innovation, so that corporate decision making can be effective for all related parties. With the implementation of good resource planning, the company will no longer receive complaints from customers