ERP Alignment for Positive Business Performance: Evidence from Korea's ERP Market

This paper aims to examine conditions under which investment in enterprise resource planning (ERP) has a positive influence on business performance. Our empirical analysis on Korean firms that invested in ERP systems reveals how organizational integration modes need to be aligned with ERP systems fo...

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Bibliographic Details
Published in:The Journal of computer information systems 2008-06, Vol.48 (4), p.25-38
Main Authors: Kang, Sora, Park, Jong-Hun, Yang, Hee-Dong
Format: Article
Language:English
Subjects:
Best practice
Clarity of ERP objectives
Enterprise resource planning
Enterprise resource planning systems
Hypotheses
Impact analysis
Information systems
Infrastructure
Integration modes
Inventory
Objectives
Organizational behavior
Real time
Regression analysis
Standardization
Studies
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Summary:This paper aims to examine conditions under which investment in enterprise resource planning (ERP) has a positive influence on business performance. Our empirical analysis on Korean firms that invested in ERP systems reveals how organizational integration modes need to be aligned with ERP systems for positive results from the ERP investment. Organizational integration modes refer to simultaneously used methods - people, standardization, and centralization -by which an organization coordinates and controls the activities of different departments within the same organization. The degree of alignment between ERP and integration modes is determined by the clarity of the ERP objectives, and positive results in terms of operational efficiency are correlated with the degree of alignment between ERP and these three integration modes.
ISSN:0887-4417
2380-2057
DOI:10.1080/08874417.2008.11646032