Investigating the Relationship between the Benefits of Enterprise Resources Planning and Improvement of the Supply Chain Management
Subject Areas : Industrial ManagementAhmad Jafarnejad 1 , Neda Rajabani 2 , Mohamad Ghafari 3
1 - Professor, Department of Industrial Management, Faculty of Management, University of Tehran, Tehran, Iran
2 - Ph.D. Student of Operations Research, Department of Industrial Management, Faculty of Management, University of Tehran, Tehran, Iran
3 - Ph.D. of Marketing, Department of Management, Faculty of Administrative Sciences and Economics, University of Isfahan, Isfahan, Iran
Keywords:
Abstract :
The purpose of this study is to examine the relationship between the benefits of enterprise resource planning and improvement of the supply chain management. The statistical population of this study includes IT experts and managers who use ERP and SCM systems or know these systems in the selective companies in the city of Isfahan. A sample of 60 managers has been selected from this population through convenience sampling method. In order to collect the research data, the questionnaire of Su et al. (2010) was used after some modification. In order to analyze the data and test the hypotheses, descriptive and inferential statistics were used. These include Pearson correlation coefficient, Durbin-Watson, and regression test. The results revealed that there is a significant relationship between ERP and SCM. On the other hand, significant relationships were observed among each of ERP and SCM dimensions.
References:
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Bowersox, D. J., Closs, D. J., & Stank, T. P. (1999). 21st century logistics: Making supply chain integration a reality. Oak Brook, Il: Council of Logistics Management.
Byrd, T. A., & Davidson, N. W. (2003). Examining possible antecedents of IT impact on the supply chain and its effect on firm performance. Information and Management, 41 (3), 243–255.
Byrne, P. J., & Heavey, C. (2006). The impact of information sharing and forecasting in capacitated industrial supply chains: A case study. International Journal of Production Economics, 103 (2), 420–437.
Byrne, B. M. (1989). A primer of LISEREL: Basic applications and programming for confirmatory factor analytic model. New York: Springer-Verlag.
Chand, D., Hachey, G., Hunton, J., Owhoso, V., & Vasudevan, S. (2005). A balanced scorecard based framework for assessing the strategic impacts of ERP systems. Computers in Industry, Vol. 56 (2), 558–572.
Chang, C. Y., & Yu, P. L. (2001). Made by Taiwan: Booming in information technology era. Singapore: World Scientific Publishing.
Chang, I.-C., Hwang, H.-G., Liaw, H.-C., Hung, M.-C., Chen, S.-L., & Yen, D. C. (2008). A neural network evaluation model for ERP performance from SCM perspective to enhance enterprise competitive advantage. Expert Systems with Applications, 35 (3), 1809–1816.
Chen, C., & Huang, S. (2006). Order-fulfillment ability analysis in the supply-chain system with fuzzy operation times. International Journal of Production Economics, 101 (2), 185–193.
Chen, H.-J., & Lin, T.-C. (2009a). Exploring source of the variety in organizationa. Chen, S.-G., & Lin, Y.-K. (2009b). On performance evaluation of ERP systems with fuzzy mathematics. Expert Systems with Applications, 36(2P2), 6362–6367.
Chiplunkar, C., Deshmukh, S. G., & Chattopadhyay, R. (2003). Application of principles of event related open systems to business process reengineering. Computers and Industrial Engineering, 45(3), 347–374.
Closs, D. J., & Mollenkopf, D. A. (2004). A global supply chain framework. Industrial Marketing Management, 33 (1), 37–44.
Davenport, T. (1998). Putting the enterprise into the enterprise system. Harvard Business Review, 76(4), 113–121.
Ellram, L. M. (1991). Supply chain management: The industrial organization perspective. International Journal of Physical Distribution and Logistics Management, 21(1), 13–22.
Fiedler, K. D., Grover, V., & Teng, J. T. C. (1996). An empirically derived taxonomy of information technology structure and its relationship to organizational structure. Journal of Management Information Systems, 13(1), 9–34.
Fine, C. H. (1998). Clockspeed: Winning industry control in the age of temporary advantage. Boulder: Perseus Books.
Goutsos, S., & Karacapilidis, N. (2003). Enhanced supply chain management for ebusiness transactions. International Journal of Production Economics, 89 (1), 141–152.
Gunasekaran, A., Patel, C., & McGaughey, R. E. (2004). A framework for supply chain performance measurement. International Journal of Production Economics, 87 (3), 333–347.
Hasani Godarzi, Rabbani, Masoud, (2012), Selecting Suppliers in the Supply Chain through A Order-based Production Approach with considering Risk-taking Values, Journal of Supply chain management, 14 (36), 20-30.
Hitt, L. M., & Brynjolffson, E. (1996). Productivity, business profitability, and consumer surplus: Three different measures of information technology value. MIS Quarterly, 20 (2), 121–142.
Holland, C., & Light, B. (1999). A critical success factors model for ERP implementation. IEEE Software, May/June, 30–35.
Karsak, E. E., & Ozogul, C. O. (2009). An integrated decision making approach for ERP system selection. Expert systems with Applications, 36(1), 660–667.
Kelle, P., & Akbulut, A. (2005). The role of ERP tools in supply chain information sharing, cooperation, and cost optimization. International Journal of Production Economics, 33(3), 41–52.
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Koh, S. C. L., Gunasekaran, A., & Rajkumar, D. (2007). ERP II: The involvement, benefits and impediments of collaborative information sharing. International Journal of Production Economics. doi:10.1016/j.ijpe.2007.04.013.
Kovacs, G. L., & Paganelli, P. (2003). A planning and management infrastructure for large, complex, distributed projects – Beyond ERP and SCM. Computers in Industry, 51 (1), 165–183.
Latamore, B. (1999). ERP in the new millennium. APICS – The performance Advantage, 29–32.
Lee, H. L., & Billington, C. (1993). Material management in decentralized supply chains. Operations Research, 41(5), 835–847.
Mazaheri, Ali, Karbasian, Mahdi, Shiroyeazadi, Hadi, (2011), Identification and Prioritization of Supply Chain Risks in Production Companies by using AHP, Journal of Supply chain management, 34 (4), 1-10.
Markus, M. L., & Yanis, C. (2000). P.C. can Fenema, multisite ERP implementations. Communications of the ACM, 43 (3), 42–46.
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Mukhopadhyay, T., Kekre, S., & Kalathur, S. (1995). Business value of information technology: A study of electronic data interchange. MIS Quarterly, 19(2), 137–156.
Narasimhan, V., & Kim, S. W. (2002). Effect of supply chain integration on the relationship between diversification and performance: Evidence from Japanese and Korean firms. Journal of Operations Management, Vol. 20, 303–323.
Norang, Ahmad, Mahriar, Hamed, (2011), Developing Performance Evaluation Model By Using Balanced Scored Cards, Journal of Supply chain management, 34 (4), 5-15.
Pentland, B .T. (1989). Use and productivity in personal computing. In Proceedings of the 10th international conference on information systems Boston, MA, 211–222.
Prahalad, C. K., & Hamel, G. (1990). The core competences of the corporation. Harvard Business Review, 90(3), 79–93. May–June.
Rahman, Z. (2003). Internet-based supply chain management: Using the internet to revolutionize your business. International Journal of Information Management, Vol. 23, 493–505.
Ramezanian, Mohamad Rahim, Javad Talab, Mostafa, (2012), Examining the Mediating Role of Supply Chain Strategies between Cmpetitive Strategies and Supply Chain Performance, Journal of Supply chain management, 14 (37), 3-5.
Roach, S. (1991). Services under stage – The restructuring imperative. Harvard Business Review, 69(5), 82–90.
Segars, A. H., & Grover, V. (1998). Strategic information of the construct and its measurement. MIS Quarterly, 22(2), 139–163.
Segars, A. H., Grover, V., & Teng, J. T. C. (1998). Strategic information systems planning: Planning system dimensions, internal coalignment, and implications for planning effectiveness. Decision Sciences, 29(2), 303–345.
Shang, S., & Seddon, P. B. (2000). A comprehensive framework for classifying the benefits of ERP systems. In Proceedings of the sixth American conference on information systems (pp. 1005–1014). Long Beach, CA.
Stalk, G., Evans, P., & Shulman, L. E. (1992). Competing on capabilities: The new roles of corporate strategy. Harvard Business Review, 70(2), 57–69.
Strassman, J. K. (1990). The business value of computers. New Canaan, CT: Economics Press.
Stratman, J. K., & Rothe, A. V. (2002). Enterprise resource planning (ERP) competence constructs: Two-stage multi-item scale development and validation. Decision Science, 33(4), 601–628.
Vijay Vemuri, K., & Palvis Shailendra, C. (2006). Improvement in operational efficiency due to ERP systems implementation: Truth or myth? Information Resources Management Journal, 19(2), 18–36.
Bingi, P., Sharma, M., & Godla, J. (1999). Critical issues affecting an ERP implementation. Information Systems Management, 16(3), 7–14.
Bowersox, D. J., Closs, D. J., & Stank, T. P. (1999). 21st century logistics: Making supply chain integration a reality. Oak Brook, Il: Council of Logistics Management.
Byrd, T. A., & Davidson, N. W. (2003). Examining possible antecedents of IT impact on the supply chain and its effect on firm performance. Information and Management, 41 (3), 243–255.
Byrne, P. J., & Heavey, C. (2006). The impact of information sharing and forecasting in capacitated industrial supply chains: A case study. International Journal of Production Economics, 103 (2), 420–437.
Byrne, B. M. (1989). A primer of LISEREL: Basic applications and programming for confirmatory factor analytic model. New York: Springer-Verlag.
Chand, D., Hachey, G., Hunton, J., Owhoso, V., & Vasudevan, S. (2005). A balanced scorecard based framework for assessing the strategic impacts of ERP systems. Computers in Industry, Vol. 56 (2), 558–572.
Chang, C. Y., & Yu, P. L. (2001). Made by Taiwan: Booming in information technology era. Singapore: World Scientific Publishing.
Chang, I.-C., Hwang, H.-G., Liaw, H.-C., Hung, M.-C., Chen, S.-L., & Yen, D. C. (2008). A neural network evaluation model for ERP performance from SCM perspective to enhance enterprise competitive advantage. Expert Systems with Applications, 35 (3), 1809–1816.
Chen, C., & Huang, S. (2006). Order-fulfillment ability analysis in the supply-chain system with fuzzy operation times. International Journal of Production Economics, 101 (2), 185–193.
Chen, H.-J., & Lin, T.-C. (2009a). Exploring source of the variety in organizationa. Chen, S.-G., & Lin, Y.-K. (2009b). On performance evaluation of ERP systems with fuzzy mathematics. Expert Systems with Applications, 36(2P2), 6362–6367.
Chiplunkar, C., Deshmukh, S. G., & Chattopadhyay, R. (2003). Application of principles of event related open systems to business process reengineering. Computers and Industrial Engineering, 45(3), 347–374.
Closs, D. J., & Mollenkopf, D. A. (2004). A global supply chain framework. Industrial Marketing Management, 33 (1), 37–44.
Davenport, T. (1998). Putting the enterprise into the enterprise system. Harvard Business Review, 76(4), 113–121.
Ellram, L. M. (1991). Supply chain management: The industrial organization perspective. International Journal of Physical Distribution and Logistics Management, 21(1), 13–22.
Fiedler, K. D., Grover, V., & Teng, J. T. C. (1996). An empirically derived taxonomy of information technology structure and its relationship to organizational structure. Journal of Management Information Systems, 13(1), 9–34.
Fine, C. H. (1998). Clockspeed: Winning industry control in the age of temporary advantage. Boulder: Perseus Books.
Goutsos, S., & Karacapilidis, N. (2003). Enhanced supply chain management for ebusiness transactions. International Journal of Production Economics, 89 (1), 141–152.
Gunasekaran, A., Patel, C., & McGaughey, R. E. (2004). A framework for supply chain performance measurement. International Journal of Production Economics, 87 (3), 333–347.
Hasani Godarzi, Rabbani, Masoud, (2012), Selecting Suppliers in the Supply Chain through A Order-based Production Approach with considering Risk-taking Values, Journal of Supply chain management, 14 (36), 20-30.
Hitt, L. M., & Brynjolffson, E. (1996). Productivity, business profitability, and consumer surplus: Three different measures of information technology value. MIS Quarterly, 20 (2), 121–142.
Holland, C., & Light, B. (1999). A critical success factors model for ERP implementation. IEEE Software, May/June, 30–35.
Karsak, E. E., & Ozogul, C. O. (2009). An integrated decision making approach for ERP system selection. Expert systems with Applications, 36(1), 660–667.
Kelle, P., & Akbulut, A. (2005). The role of ERP tools in supply chain information sharing, cooperation, and cost optimization. International Journal of Production Economics, 33(3), 41–52.
Kettinger, W. J., Grover, V., Guha, S., & Segars, A. H. (1994). Strategic information systems revisited: A study in sustainability and performance. MIS Quarterly, 18(1), 31–58.
King, W. R., & Teo, T. S. H. (1996). Key dimensions of facilitators and inhibitors for the strategic use of information technology. Journal of Management Information Systems, 12(4), 35–53.
Koh, S. C. L., Gunasekaran, A., & Rajkumar, D. (2007). ERP II: The involvement, benefits and impediments of collaborative information sharing. International Journal of Production Economics. doi:10.1016/j.ijpe.2007.04.013.
Kovacs, G. L., & Paganelli, P. (2003). A planning and management infrastructure for large, complex, distributed projects – Beyond ERP and SCM. Computers in Industry, 51 (1), 165–183.
Latamore, B. (1999). ERP in the new millennium. APICS – The performance Advantage, 29–32.
Lee, H. L., & Billington, C. (1993). Material management in decentralized supply chains. Operations Research, 41(5), 835–847.
Mazaheri, Ali, Karbasian, Mahdi, Shiroyeazadi, Hadi, (2011), Identification and Prioritization of Supply Chain Risks in Production Companies by using AHP, Journal of Supply chain management, 34 (4), 1-10.
Markus, M. L., & Yanis, C. (2000). P.C. can Fenema, multisite ERP implementations. Communications of the ACM, 43 (3), 42–46.
Markus, M. L., & Tanis, C. (2000). The enterprise systems experience from adoption to success. In R. W. Zmud (Ed.), Framing the domains of IT research: Glimpsing the future through the past (pp. 173–207). Cincinnati, OH: Pinnafles Education Resources Inc..
Mukhopadhyay, T., Kekre, S., & Kalathur, S. (1995). Business value of information technology: A study of electronic data interchange. MIS Quarterly, 19(2), 137–156.
Narasimhan, V., & Kim, S. W. (2002). Effect of supply chain integration on the relationship between diversification and performance: Evidence from Japanese and Korean firms. Journal of Operations Management, Vol. 20, 303–323.
Norang, Ahmad, Mahriar, Hamed, (2011), Developing Performance Evaluation Model By Using Balanced Scored Cards, Journal of Supply chain management, 34 (4), 5-15.
Pentland, B .T. (1989). Use and productivity in personal computing. In Proceedings of the 10th international conference on information systems Boston, MA, 211–222.
Prahalad, C. K., & Hamel, G. (1990). The core competences of the corporation. Harvard Business Review, 90(3), 79–93. May–June.
Rahman, Z. (2003). Internet-based supply chain management: Using the internet to revolutionize your business. International Journal of Information Management, Vol. 23, 493–505.
Ramezanian, Mohamad Rahim, Javad Talab, Mostafa, (2012), Examining the Mediating Role of Supply Chain Strategies between Cmpetitive Strategies and Supply Chain Performance, Journal of Supply chain management, 14 (37), 3-5.
Roach, S. (1991). Services under stage – The restructuring imperative. Harvard Business Review, 69(5), 82–90.
Segars, A. H., & Grover, V. (1998). Strategic information of the construct and its measurement. MIS Quarterly, 22(2), 139–163.
Segars, A. H., Grover, V., & Teng, J. T. C. (1998). Strategic information systems planning: Planning system dimensions, internal coalignment, and implications for planning effectiveness. Decision Sciences, 29(2), 303–345.
Shang, S., & Seddon, P. B. (2000). A comprehensive framework for classifying the benefits of ERP systems. In Proceedings of the sixth American conference on information systems (pp. 1005–1014). Long Beach, CA.
Stalk, G., Evans, P., & Shulman, L. E. (1992). Competing on capabilities: The new roles of corporate strategy. Harvard Business Review, 70(2), 57–69.
Strassman, J. K. (1990). The business value of computers. New Canaan, CT: Economics Press.
Stratman, J. K., & Rothe, A. V. (2002). Enterprise resource planning (ERP) competence constructs: Two-stage multi-item scale development and validation. Decision Science, 33(4), 601–628.
Vijay Vemuri, K., & Palvis Shailendra, C. (2006). Improvement in operational efficiency due to ERP systems implementation: Truth or myth? Information Resources Management Journal, 19(2), 18–36.
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