Integrating ERP Benefits, Competitive Priorities and Performance Measures

Purpose: Enterprise Resource Planning (ERP) systems are implemented to control the processes developed by the organisation through analysis of the allocation of resources within the firm. Although the benefits of implementing such systems have been determined, research on the relationship to firm performance has been limited to case studies and very specific papers based on some financial measures. Design/methodology/approach: A survey is used to collect data. Empirical analysis utilises Structural Equation Modelling (SEM). Findings: This investigation aims to study the appropriateness of ERP benefits to the firm’s competitive priorities, based on the assumption that this appropriateness is what is responsible for its impact on firm performance measures. The results confirm the positive relationship of the benefits in operations, management and IT infrastructure that implementing an ERP system provides for the firm’s competitive priorities. Originality/value: The study confirms that there is a positive relationship between these benefits and a higher level of key performance measures, and that competitive priorities sometimes act as a mediator of this relationship.