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Understanding the influence of integration on ERP performance

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Abstract

This research investigates the influence of five levels of ERP integration on ERP performance in different user-friendly interface groups. The five levels are system-specification, Island of Technology, organizational, socio-organizational, and global integration. We conducted an empirical study that involved 102 ERP professionals, 52 of whom showed low demand for user-friendly interface design while the others showed high demand. The results suggest that system-specification and organizational integration significantly influence ERP performance in the low demanding user-friendly interface group, while system-specification and socio-organizational integration significantly influence ERP performance in the high demanding user-friendly group. The research model explains 50 and 46% respectively of ERP performance in each group.

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Notes

  1. MIS is used for scheduling and control, distribution management, accounting, and finance. CAM is used for process planning and control, process automation, and shop floor management, while CAD is used for conceptualization, analysis, visualization, and detailing. Integration is the linking of four major types of information systems (IS)—Electronic Data Processing (EDP), Management Information Systems (MIS), Decision Support Systems (DSS), and Expert Systems (ES)--with Computerized Manufacturing Systems (CMS) [7].

  2. A typical ERP application supports cross-functional business processes by linking the following five primary business functions: (1) Accounting and controlling; (2) HR management; (3) Production and materials management; (4) Project management; (5) Quality management and plant maintenance; (6) Sales and distribution [41]. Recently, ERP vendors are branching into new areas such as Supply Chain Management (SCM), E-commerce, Customer Relationship Management (CRM) and Business Intelligence (BI).

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Authors and Affiliations

  1. School of Accountancy & MIS, College of Commerce, DePaul University, Chicago, IL, 60604, USA

    Yujong Hwang & Delvin Grant

  2. College of International Studies, Kyung Hee University, Yongin, South Korea

    Yujong Hwang

Authors
  1. Yujong Hwang
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  2. Delvin Grant
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Correspondence to Yujong Hwang.

Appendix

Appendix

See Table 5.

Table 5 Items for the construct and loadings
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Hwang, Y., Grant, D. Understanding the influence of integration on ERP performance. Inf Technol Manag 12, 229–240 (2011). https://doi.org/10.1007/s10799-011-0096-3

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