Enterprise Resource Planning Systems and Operational Performance
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Date
2013
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Publisher
Uva Wellassa University of Sri Lanka
Abstract
The Enterprise Resource Planning (ERP) systems are gaining popularity in the current turbulent
business environment as a mechanism of integrating the cross functional business units. An ERP
system is a software that helps organizations to integrate their business functions through a
common database and enable planning and utilization of organization wide resources (Silva et
al., 2008). Operational performance is firm's performance measured against standard or
prescribed indicators of effectiveness, efficiency, and environmental responsibility such as,
cycle time, productivity, waste reduction, and regulatory compliance. As an operational system,
the possibility to exploit the potential of ERP system can be achieved by having proper training
as well as vendor support (Silva et al., 2008). The ERP system implementation is a huge
investment and it affects not only the organizations but also the entire country in long run in
indirect manner. Considering the Sri Lankan manufacturing sector as one of the pivotal sectors
in the economy of the country, identifying whether such investments add value to the
organization is a vital need. Since the available knowledge on the said matter is limited, through
this study, the researcher examined whether ERP has made any positive impact on operational
performance of the manufacturing sector in Sri Lanka. Hence, the study objectives were to
determine the relationship between user training on IT and three operational factors which are
gaining operational performance, to examine the relationship between vendor support and three
operational factors which are gaining operational performance and to determine the impact of
ERP system on operational performance
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Keywords
Business Management, Database, Entrepreneurship and management, Entrepreneurship, System, Enterprise Resource Planning