Global Journal of Commerce & Management Perspective
Open Access

Abstract

Enterprise Resource Planning and Organizational Performance in Nigerian Manufacturing Firms: An Empirical Analysis

Awolusi, Olawumi Dele, Onigbinde and Isaac Oladepo

Enterprise Resource Planning (ERP) system is a business management system that encompasses different software components aimed at managing, integrating and optimizing all business processes within an organization (Heeks, 2007). ERP system has important characteristic of integrating information, departments, functions, and processes throughout the entire enterprise. The purpose of this paper is to identify the critical success factors of ERP implementation, to evaluate their effects on the primary measures as expressed by the ERP User satisfaction and the secondary measures as expressed by the organizational performance, and to find out the effect of the ERP user satisfaction on the organizational performance of Nigerian manufacturing firms. 656 senior and management staff of 15 Nigerian manufacturing companies, which have implemented ERP programme, were randomly selected from a business-to-business database maintained by a national list provider. Using the framework from Al-Mashari, Shehzad & Al-Braithen (2008), factors manifesting ERP user satisfaction and organizational performance were regressed on the Critical Success Factors (CSFs) manifesting successful ERP. Findings based on the survey revealed that successful ERP positively affected both performance measures in the Nigerian manufacturing firms. The results further suggest the influence of successful ERP towards improving business performance sufficiently (p= 0.001).