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Business value of enterprise resource planning spending and scope: a post-implementation perspective


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


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.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Engineering
DOI Number: https://doi.org/10.1108/K-01-2018-0025
Publisher: Emerald Publishing
Keywords: Financial performance; Enterprise resource planning; Custom-built ERP; ERP risk management; ERP scope
Depositing User: Ms. Nuraida Ibrahim
Date Deposited: 15 Oct 2020 21:47
Last Modified: 15 Oct 2020 21:47
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1108/K-01-2018-0025
URI: http://psasir.upm.edu.my/id/eprint/80846
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