Impact of ERP System Usage on Supply Chain Integration: A Structural Equation Modeling, Jordanian Pharmaceutical Manufacturing Case study

Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 18 May 2020

Impact of ERP System Usage on Supply Chain Integration: A Structural Equation Modeling, Jordanian Pharmaceutical Manufacturing Case study

Hasan Salih Suliman Al-Qudah

King Abdul-Aziz University, Kingdom of Saudi Arabia

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10.31014/aior.1992.03.02.233

Pages: 719-728

Keywords: ERP System, Supply Chain Integration, Jordanian Pharmaceutical Manufacturing Firms and Structural Equation Modeling

Abstract

This study aimed to investigate the impact of ERP System Usage on Supply Chain Integration at Jordanian Pharmaceutical Manufacturing firms. A random sample from employees working in the Jordanian Pharmaceutical Manufacturing firms (Human Resource Department, Financial Department, Production Department, Supply Chain Department as well as Operations & Quality Department) were chosen totaling (183) individuals. The study applied using SPSS and Amos to do the analysis. The study using a questionnaire to achieve the study objectives through Structural Equation Modeling (SEM). The study results revealed that the Customer Relationship Management System, Inventory Management System, Financial Management System, production and operation Management System has a significant positive effect on Integration with Supplier, Integration with Customer and internal processes integration. The study concluded that there exists a statistically significant relationship between ERP system on Integration with Supplier, Integration with Customer and internal processes integration at Jordanian Pharmaceutical Manufacturing firms. The study found out that there was huge contribution of the ERP system in supply chain integration at Jordanian Pharmaceutical Manufacturing firms.

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