The Effect of ERP Systems Competences on Business Process and Organizational Performance

Abstract

Due to the research designs used and the nature of the variables included in prior research models, the evidence on the contribution of ERP systems to firm performance is not entirely consistent. This study synthesizes the process-oriented and resource-based theoretical perspectives and proposes a research model that investigates the process through which organizations generate business value from their ERP systems investments. In doing so, the study examines the role of ERP systems competences and business process performance in enhancing organizational performance. The results show that the ERP technical and human competences and the complementarity between them have a positive effect on business process performance. The results also show that business process performance is an important factor that mediates the relationship between ERP systems competences and organizational performance. The research findings offer valuable contributions to the theory and practice on how ERP systems enhance organizations performance.