Operating performance of Chinese manufacturers in the wake of ERP implementation

Authors:
Joseph Callaghan;Li Dang;Arline Savage;Yuefan Sun
Affiliations:
School of Business Administration Oakland University, 2200 N. Squirrel Road, Rochester, MI, 48309, USA;Orfalea College of Business, California Polytechnic State University, San Luis Obispo, CA 93407, USA;UAB School of Business, University of Alabama at Birmingham, 1530 3rd Ave. S, Birmingham, AL 35294-4460, USA;Business School, Beijing Technology and Business University, 517 Zonghelou, 33 Fucheng Road, Haidian District, Beijing, 100048, China
Venue:
International Journal of Business Information Systems
Year:
2013

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Abstract

This paper develops a model of firm operational performance in the aftermath of an ERP implementation based upon subjects' perceptions. We obtained a unique set of data for 198 public Chinese manufacturing companies involved in enterprise resource planning ERP implementations from 1993 to 2006. We collected fundamental data from a survey of these companies, and then analysed their ERP implementations and post-implementation operational performances. We use subjects' perceptions to model firm operational performance as a function of effective business process improvement BPI that is related to effective ERP implementation and post-implementation systems integration. These intervening factors, in turn, are modelled as a function of both the level of CEO involvement and the extent of business process reengineering BPR. We find that operational performance is positively associated with BPI, which is positively related to perceived ERP effectiveness and post-implementation systems integration, and that these are positively related to both the level of CEO involvement and the extent of BPR. Finally, competition and organisational change factors, along with ERP intensity variables are found to be effective controls in the underlying conceptual model.