The Effect of Enterprise Resource Planning Systems Implementation on Business Performance: An Applied Study on Small and Medium Manufacturing Companies in Jordan

Ibtihal Hadidi, Khalil Hyari, Mohmammad Abu-Zeid

Abstract


This study aims to investigate the impact of ERP system implementation on the performance of the Jordanian small and medium manufacturing companies. Moreover, this study examines the influence of the implementation period of the ERP system and the staff training on that system as a moderating variable that effect the relationship between the ERP system implementation and organizational performance in small and medium sized enterprises in the manufacturing sector in Jordan.
According to the data, a total of 66 questionnaires were returned from 80 questionnaires. This translates into usable response rate of 82.5%. The survey has been distributed to the managers (leading positions) who obtain the knowledge about the ERP system in their companies. Structural Equation Modeling (SEM) techniques and multi-group analysis were used to examine the research’s hypothesis
The most significant findings of the study are:
- The integration of the system and the information quality factors have a direct significant effect on the performance of that organization.
- The quality of the ERP system, the accuracy of the information and the required time to provide that information did not have the same direct effect on the performance of that organization.
- The period of the ERP implementation moderate the effect of ERP implementation on the performance of that organization.
- Training the staff on using the ERP system moderate the effect of ERP implementation on the performance of that organization.
The study recommends that the manufacturing SMEs must adopt and implement an ERP system to the best level, since it has a direct positive effect on its performance.

Keywords


ERP, Business Performance, SMEs, Manufacturing Sector, Jordan.

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