ERP Research

This paper explores how ERP implementation benefits impact supply chain management (SCM) performance, examining operational, tactical, and strategic benefits and their effects on different performance areas within SCM, specifically in Taiwanese IT companies.

Research Objectives

To investigate the relationship between ERP implementation benefits and firm performance in SCM, focusing on operational, tactical, and strategic ERP benefits.

Methodology

Utilizes a structural equation model (SEM) to analyze survey data from Taiwanese IT firms. Hypotheses were developed and tested across ERP benefits and SCM performance metrics.

Key Findings

ERP benefits were confirmed as significant predictors for SCM performance in areas such as customer service, internal processes and cost management.

Operational Benefits: Strongly correlate with improvements in internal and external SCM processes, such as efficiency in inventory management and delivery.
Tactical Benefits: Positively impact SCM customer service and cost management by enhancing information flow and decision-making.
Strategic Benefits: While generally beneficial, they were found to have a minimal effect on external SCM processes in this study, possibly due to limitations in first-generation ERP systems.

Challenges

The paper identifies limitations in early ERP systems’ ability to improve external SCM processes effectively, with potential enhancements possible in newer ERP iterations.

Limitations

Focuses on Taiwanese IT firms, which may limit the generalizability of findings to other industries or geographic contexts. Also based primarily on first-generation ERP systems.

Future Research Directions

Investigate ERP impact on SCM in other industries and geographic regions. Explore how modern ERP solutions, like ERP II or cloud ERP, address limitations found in legacy ERP systems.

Research Relevance

Your Research: This study provides empirical evidence of ERP’s impact on SCM performance, especially highlighting areas where ERP benefits fall short, relevant for understanding the integration between ERP systems and SCM performance.

Reference

Yang, C., & Su, Y.-f. (2009). The relationship between benefits of ERP systems implementation and its impacts on firm performance of SCM. Journal of Enterprise Information Management, 22(6), 722-752.