The Impact of Enterprise Resource Planning on Business Performance: With the Discussion on Its Relationship with Open Innovation
Small and medium enterprises (SMEs) have played an important role in economic development. The increasing number of SMEs have resulted in the business landscape to become more and more competitive. This has made SMEs to also undergo great challenges to be able to maintain their existence and expand...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2020-09-01
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| Series: | Journal of Open Innovation: Technology, Market and Complexity |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2199-8531/6/3/87 |
| _version_ | 1797426642649350144 |
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| author | Sara AlMuhayfith Hani Shaiti |
| author_facet | Sara AlMuhayfith Hani Shaiti |
| author_sort | Sara AlMuhayfith |
| collection | DOAJ |
| description | Small and medium enterprises (SMEs) have played an important role in economic development. The increasing number of SMEs have resulted in the business landscape to become more and more competitive. This has made SMEs to also undergo great challenges to be able to maintain their existence and expand their businesses. It is argued that the enterprise resource planning system (ERPs) can improve business performance. Therefore, the primary purpose of this study is to examine the impact of an ERPs usage on the financial and non-financial performance of the Saudi SMEs. An exploratory study has been used to identify the factors contributing to the effective and successful use of an ERP system. The findings indicate seven contingency factors. Based on the exploratory study results, three hypotheses have been developed and tested in a quantitative study. A survey is constructed and sent to 200 Saudi SMEs that adopted the ERP systems. About 120 valid responses have been received. For data analysis and hypothesis testing, a structural equation modelling (SEM) tool has been adopted. The results depict that management support, user satisfaction, and training significantly impact the ERPs usage. Another significant finding is that ERP systems enhance SMEs’ performance. |
| first_indexed | 2024-03-09T08:33:13Z |
| format | Article |
| id | doaj.art-d018166d0cb944108a2f6813f68a460e |
| institution | Directory Open Access Journal |
| issn | 2199-8531 |
| language | English |
| last_indexed | 2024-03-09T08:33:13Z |
| publishDate | 2020-09-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj.art-d018166d0cb944108a2f6813f68a460e2023-12-02T19:17:49ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312020-09-016878710.3390/joitmc6030087The Impact of Enterprise Resource Planning on Business Performance: With the Discussion on Its Relationship with Open InnovationSara AlMuhayfith0Hani Shaiti1School of Business, King Faisal University, Al-Ahsa 31928, Saudi ArabiaSchool of Business, King Faisal University, Al-Ahsa 31928, Saudi ArabiaSmall and medium enterprises (SMEs) have played an important role in economic development. The increasing number of SMEs have resulted in the business landscape to become more and more competitive. This has made SMEs to also undergo great challenges to be able to maintain their existence and expand their businesses. It is argued that the enterprise resource planning system (ERPs) can improve business performance. Therefore, the primary purpose of this study is to examine the impact of an ERPs usage on the financial and non-financial performance of the Saudi SMEs. An exploratory study has been used to identify the factors contributing to the effective and successful use of an ERP system. The findings indicate seven contingency factors. Based on the exploratory study results, three hypotheses have been developed and tested in a quantitative study. A survey is constructed and sent to 200 Saudi SMEs that adopted the ERP systems. About 120 valid responses have been received. For data analysis and hypothesis testing, a structural equation modelling (SEM) tool has been adopted. The results depict that management support, user satisfaction, and training significantly impact the ERPs usage. Another significant finding is that ERP systems enhance SMEs’ performance.https://www.mdpi.com/2199-8531/6/3/87enterprise resource planning systemusagecontingencybusiness performanceSaudi Arabia |
| spellingShingle | Sara AlMuhayfith Hani Shaiti The Impact of Enterprise Resource Planning on Business Performance: With the Discussion on Its Relationship with Open Innovation Journal of Open Innovation: Technology, Market and Complexity enterprise resource planning system usage contingency business performance Saudi Arabia |
| title | The Impact of Enterprise Resource Planning on Business Performance: With the Discussion on Its Relationship with Open Innovation |
| title_full | The Impact of Enterprise Resource Planning on Business Performance: With the Discussion on Its Relationship with Open Innovation |
| title_fullStr | The Impact of Enterprise Resource Planning on Business Performance: With the Discussion on Its Relationship with Open Innovation |
| title_full_unstemmed | The Impact of Enterprise Resource Planning on Business Performance: With the Discussion on Its Relationship with Open Innovation |
| title_short | The Impact of Enterprise Resource Planning on Business Performance: With the Discussion on Its Relationship with Open Innovation |
| title_sort | impact of enterprise resource planning on business performance with the discussion on its relationship with open innovation |
| topic | enterprise resource planning system usage contingency business performance Saudi Arabia |
| url | https://www.mdpi.com/2199-8531/6/3/87 |
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