Business value of enterprise resource planning spending and scope: a post-implementation perspective
Purpose – The purpose of this study is to contribute to the existing knowledge about the value of postimplementation Enterprise Resource Planning (ERP) system at the firm level. Design/methodology/approach – A questionnaire-based survey was conducted to collect data from 217 Malaysian firms that su...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Emerald Publishing
2019
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/80846/ http://psasir.upm.edu.my/id/eprint/80846/1/BUSINESS.pdf |
| _version_ | 1848858966195437568 |
|---|---|
| author | Ghobakhloo, Morteza Azar, Adel Tang, Sai Hong |
| author_facet | Ghobakhloo, Morteza Azar, Adel Tang, Sai Hong |
| author_sort | Ghobakhloo, Morteza |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Purpose – The purpose of this study is to contribute to the existing knowledge about the value of postimplementation Enterprise Resource Planning (ERP) system at the firm level.
Design/methodology/approach – A questionnaire-based survey was conducted to collect data from 217 Malaysian firms that successfully implemented ERP system. Data analysis was conducted with partial least squares-structural equation modeling and partial least squares multi-group analysis techniques. Findings – Higher ERP spending and greater ERP scope in the post-implementation stage were associated with higher performance gains. Research limitations/implications – Among other limitations, relying on a small sample size and cross-sectional data of this study and lack of generalizability of findings tend to have certain limitations. An interesting direction for future research would be to extend this study by conducting a multi-level analysis to understand how ERP spending and scope would affect the micro-level performance. Practical implications – Non-financial performance gain is another valuable outcome of ERP implementation. The choice between in-house and off-the-shelf ERP systems will have dramatic impacts on the future profitability of firms. ERP risk management team and related practices during implementation phase result in a significantly higher financial gain in the post-implementation phase. Originality/value – This study assesses the business value of ERP at the post-implementation phase while accounting for key contextual and managerial issues, a topic that has received little attention to date. |
| first_indexed | 2025-11-15T12:21:50Z |
| format | Article |
| id | upm-80846 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:21:50Z |
| publishDate | 2019 |
| publisher | Emerald Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-808462020-10-15T21:47:09Z http://psasir.upm.edu.my/id/eprint/80846/ Business value of enterprise resource planning spending and scope: a post-implementation perspective Ghobakhloo, Morteza Azar, Adel Tang, Sai Hong Purpose – The purpose of this study is to contribute to the existing knowledge about the value of postimplementation Enterprise Resource Planning (ERP) system at the firm level. Design/methodology/approach – A questionnaire-based survey was conducted to collect data from 217 Malaysian firms that successfully implemented ERP system. Data analysis was conducted with partial least squares-structural equation modeling and partial least squares multi-group analysis techniques. Findings – Higher ERP spending and greater ERP scope in the post-implementation stage were associated with higher performance gains. Research limitations/implications – Among other limitations, relying on a small sample size and cross-sectional data of this study and lack of generalizability of findings tend to have certain limitations. An interesting direction for future research would be to extend this study by conducting a multi-level analysis to understand how ERP spending and scope would affect the micro-level performance. Practical implications – Non-financial performance gain is another valuable outcome of ERP implementation. The choice between in-house and off-the-shelf ERP systems will have dramatic impacts on the future profitability of firms. ERP risk management team and related practices during implementation phase result in a significantly higher financial gain in the post-implementation phase. Originality/value – This study assesses the business value of ERP at the post-implementation phase while accounting for key contextual and managerial issues, a topic that has received little attention to date. Emerald Publishing 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/80846/1/BUSINESS.pdf Ghobakhloo, Morteza and Azar, Adel and Tang, Sai Hong (2019) Business value of enterprise resource planning spending and scope: a post-implementation perspective. Kybernetes, 48 (5). pp. 967-989. ISSN 0368-492X; ESSN: 1758-7883 https://www.emerald.com/insight/content/doi/10.1108/K-01-2018-0025/full/html 10.1108/K-01-2018-0025 |
| spellingShingle | Ghobakhloo, Morteza Azar, Adel Tang, Sai Hong Business value of enterprise resource planning spending and scope: a post-implementation perspective |
| title | Business value of enterprise resource planning spending and scope: a post-implementation perspective |
| title_full | Business value of enterprise resource planning spending and scope: a post-implementation perspective |
| title_fullStr | Business value of enterprise resource planning spending and scope: a post-implementation perspective |
| title_full_unstemmed | Business value of enterprise resource planning spending and scope: a post-implementation perspective |
| title_short | Business value of enterprise resource planning spending and scope: a post-implementation perspective |
| title_sort | business value of enterprise resource planning spending and scope: a post-implementation perspective |
| url | http://psasir.upm.edu.my/id/eprint/80846/ http://psasir.upm.edu.my/id/eprint/80846/ http://psasir.upm.edu.my/id/eprint/80846/ http://psasir.upm.edu.my/id/eprint/80846/1/BUSINESS.pdf |