Title: The impact of ERP implementation on business performance – an integrated investigation model

Authors: Huang Shaio-Yan, Lin Ching-Wen, Wong Seng-Lee, Tsai Ming-Chun

Addresses: Department of Accounting, Feng Chia University, Taiwan, ROC. ' Department of Business Administration, Chinese Culture University, Taiwan, ROC. ' Department of Public Administration and Policy, National Taipei University, Taiwan, ROC. ' Department of Business Administration, Chung Hua University, Taiwan, ROC

Abstract: This study builds an integrated theoretical model to investigate and explain the impact of Enterprise Resource Planning (ERP) implementation on business performance. This research uses the Data Envelopment Analysis (DEA) approach to assess the technical efficiency of the company|s implementation of ERP and applies Structural Equation Modelling (SEM) to test the integrated theoretical model. The empirical results show that ERP implementation can positively affect the process capital of Intellectual Capital (IC); process capital can positively affect customer capital and customer capital ultimately affects business performance. Companies implementing ERP can build process capital to meet the challenges of the competitive market environment. This study builds on past research, which pointed out that ERP had tangible and intangible results, by establishing a comprehensive structure of how ERP implementation affects the company.

Keywords: enterprise resource planning; ERP implementation; intellectual capital; operation process; business performance; IT strategy; data envelopment analysis; DEA; structural equation modelling; process capital; customer capital; performance evaluation; value chain management.

DOI: 10.1504/IJMTM.2007.013757

International Journal of Manufacturing Technology and Management, 2007 Vol.12 No.4, pp.342 - 359

Published online: 25 May 2007 *

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