The Impact of ERP Systems and Supply Chain Management Practices on Firm Performance: Case of Turkish Companies

Abstract

Enterprise Resource Planning (ERP) system is an important tool for business processes planning, information flowing, executing and controlling, regarding the sources of the companies’ (financial, material, equipment, labor) deployed premises in different places. Supply Chain Management (SCM) practices are extroverted doors of the companies in order to ensure mutual advantages in their own processes. Successfully implemented and integrated ERP system and SCM practices provide advantages in planning, decision-making, execution and increases the performance of firms. This study examines the dimensions of SCM practices and ERP systems and tests the relationship between competitive advantage and firm performance. The research was carried out for 138 Turkish Companies’ executives. Path analysis was used to test the research hypotheses. SCM and ERP system implementations had revealed that the SCM practices and ERP system have positive effects on firm performance and competitive advantages.