Impact of ERP System Usage on Supply Chain Integration: A Structural Equation Modeling, Jordanian Pharmaceutical Manufacturing Case study
top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

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

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

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.

References

  1. Abugabah, A; Sanzogni, L and Alfarraj, O. (2015). Evaluating the impact of ERP systems in higher education. The International Journal of Information and Learning Technology. 32(1), 45 - 64.

  2. Ahmad, M and Cuenca, R. (2013). Critical success factors for ERP implementation in SMEs. Robotics and Computer-Integrated Manufacturing, 29 (3), 104-111.

  3. Al-Hadi, M and Al-Shaibany, N. (2017). Critical success factors (CSFs) of ERP in higher education institutions. International Journal, 7(4), 92-95.

  4. Annan, J., Boso, N., Mensah, J., & Nagbe Sulee, E. (2016). Antecedents and Consequences of Supply Chain Integration: Empirical Evidence from a Developing Economy. International Journal of Supply Chain Management, 5(1), 10-24.

  5. Costa, J; Ferreira, E; Bento, F and Aparicio, M. (2016). Enterprise resource planning adoption and satisfaction determinants. Computers in Human Behavior. 63, 659-671.

  6. Fadlalla, A and Amani, F. (2015). A keyword-based organizing framework for ERP intellectual contributions. Journal of Enterprise Information Management, 28(5), 637-657.

  7. Flynn, B; Huo, B and Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28 (1), 58–71

  8. Garg, P. and Khurana, R. (2017). Applying structural equation model to study the critical risks in ERP implementation in Indian retail. Benchmarking: An International Journal, 24(1), 143-162.

  9. Gollner, J and Baumane-Vitolina, I. (2016). Measurement of ERP-Project Success: Findings from Germany and Austria. Engineering Economics, 27(5), 498 – 508.

  10. Gupta, S; Kumar, S; Singh, K; Foropon, C and Chandra, C. (2018). Role of cloud ERP on the performance of an organization: Contingent resource-based view perspective. The International Journal of Logistics Management, 29(2), 659-675.

  11. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2010). Multivariate Data Analysis. 7thed., New York: Macmillion Publishing Company.

  12. Hasan, S; Ebrahim, Z; Mahmood, W and Rahman, A. (2017). An Insight into Enterprise Resource Planning Systems. Research Trend, 7 (1), 177 – 182.

  13. Hasheela-Mufeti, V and Smolander, K. (2017). What are the requirements of a successful ERP implementation in SMEs? Special focus on Southern Africa, International Journal of Information Systems and Project Management, 5 (3), 5-20.

  14. Heizer, J; Render, P and Zubi, Z. (2013). Operation Management (Arab World Edition). Pearson, England.

  15. Hsu, F; Yen, R and Chung, J. (2015). Assessing ERP postimplementation success at the individual level: Revisiting the role of service quality. Information & Management. 52(8), 925-942.

  16. Huo, B; Qi, Y; Wang, Z and Zhao, X. (2014). The impact of supply chain integration on firm performance: The moderating role of competitive strategy. Supply Chain Management: An International Journal, 19(4), 369-384.

  17. Ince, H; Imamoglu, Z; Keskin, H; Akgun, A and Efe, N. (2013). The impact of ERP systems and supply chain management practices on firm performance: Case of Turkish companies. Procedia-Social and Behavioral Sciences, 99, 1124 – 1133.

  18. Jagoda, K and Samaranayake, P. (2017). An integrated framework for ERP system implementation. International Journal of Accounting & Information Management, 25 (1), 91-109.

  19. Kiran, T & Reddy, A. (2019). Critical success factors of ERP implementation in SMEs.Journal of Project Management, 4(4), 267-280.

  20. Lii, P; Kuo, F. (2016). Innovation-oriented supply chain integration for combined competitiveness and firm performance. International Journal of Production Economics, 174, 142–155

  21. Mabert, A; Soni, A and Venkataramanan, M. (2013). Enterprize resource planning Managing implementation process. European journal of operational Research, 146 (2), 304 – 314.

  22. Madanhire, I and Mbohwa, C. (2016). Enterprise resource planning (ERP) in improving operational efficiency: Case study. Procedia CIRP, 40, 225 – 229.

  23. Marinagi, C; Trivellas, P and Reklitis, P. (2015). Information quality and supply chain performance: The mediating role of information sharing. Procedia- Social and Behavioral Sciences, 175, 473 - 479.

  24. Mehralian, G; Zarenezhad, F and Rajabzadeh, A. (2015). Developing a model for an agile supply chain in pharmaceutical industry. International Journal of Pharmaceutical and Healthcare Marketing, 9(1), 74-91.

  25. Ngai, W; Chau, C and Chan, T. (2011). Information technology, operational, and management competencies for supply chain agility: Findings from case studies. The Journal of Strategic Information Systems, 20(3), 232-249.

  26. Njihia, E and Mwirigi, F. (2014). The Effects of Enterprise Resource Planning Systems on Firm’s Performance: A Survey of Commercial Banks in Kenya. International Journal of Business and Commerce, 3, (8), 120 - 129.

  27. Ociepa-Kubicka, A. (2017). The Extent of ERP Systems' Implementation and Its Impact on the Performance of Pharmaceutical Manufacturing Companies in Jodan. World Scientific News, 89, 237-243.

  28. Poranki, K; Perwej, Y and Akhtar, M. (2015). Integration of SCM and ERP for Competitive Advantage. Research Journal of Sciences and IT Management, 4 (5), 17 – 24.

  29. Qi, Y; Huo, B; Wang, Z and Yeung, H. (2017). The impact of operations and supply chain strategies on integration and performance. International Journal of Production Economics, 185, 162–174.

  30. Ram, J; Wu, L and Tagg, R. (2014). Competitive advantage from ERP projects: Examining the role of key implementation drivers. International Journal of Project Management, 32(4), 663 - 675.

  31. Tiwari, K; Tiwari, A and Samuel, C. (2015). Supply chain flexibility: a comprehensive review. Management Research Review, 38(7), 767 - 792.

  32. Tseng, L; Wu, K. and Nguyen, T. (2011). Information technology in supply chain management: a case study. Procedia - Social and Behavioral Sciences, 25, 257-272.

  33. Ullah, A., Baharun, B; Nor, K; Siddique, M and Sami, A. (2017). Enterprise Resource Planning (ERP) Systems and User Performance (UP). Journal of Managerial Sciences, XI (03), 377 - 390.

  34. Wheelen, T., Hunger, D., Hoffman, A and Bamford, C. (2018). Strategic Management and Business Policy: Globalization, Innovation and Sustainability. 15thEdition, Pearson education Limited.

  35. Xu, D; Huo, B and Sun, L. (2014). Relationships between intra-organizational resources, supply chain integration and business performance: an extended resource-based view. Industrial Management and Data Systems, 114(8), 1186 - 1206.

bottom of page