Impact of Supply Chain Management on the Relationship between Enterprise Resource Planning System and Organizational Performance

Abstract

Two of the essential IT investment options that managers resort are supply chain management and enterpriseresource planning. These options are known in the relevant literature as factors contributing to the enhancementof organizational performance. The objective of this study is to investigate the enterprise resource planningadoption and its influence on organizational performance through supply chain management. This articlesuggests a new model which applies enterprise resource planning with supply chain management to optimalorganizational performance. Structural equation model was utilized to test the model fitting level and the fourproposed hypotheses. The required data for this research was collected from 174 companies in Malaysia throughprepared surveys. The results support, through empirical evidences, the existence of positive effects ofenterprise resource planning on the supply chain which ultimately results in improved overall performance ofthe studied organizations.