The Balanced Scorecard Approach to Assess the Influence of ERPS and SCM Usage with Strategic Alignment as a Moderator

Authors

DOI:

https://doi.org/10.21512/bbr.v9i3.4612

Keywords:

Enterprise Resource Planning System (ERPS), strategic alignment, balanced scorecard, Supply Chain Management (SCM)

Abstract

The purpose of this research was to examine whether the Enterprise Resource Planning System (ERPS) usage by Indonesian companies affected the firm performance based on the balanced scorecard approach directly or moderated by strategic alignment. This research also assessed the performance between companies that applied ERPS with Supply Chain Management (SCM) and the companies applying ERPS without SCM. Data collection was conducted from October 2010 to April 2011 using questionnaires sent to respondents by e-mail and directly to the company. The sampling method used was convenience sampling by visiting companies in the survey. The final number of samples were 63 companies. Data analysis was conducted by using Structural Equation Model (SEM). The results show that ERPS usage directly affects firm performance as measured by the balanced scorecard that includes financial perspective, customer perspective, internal process perspective, and learning and growth perspectives. Moreover, the strategic alignment has been proven as a moderating variable in the relationship between ERPS usage and the firm performance. Finally, the modules addition such as SCM significantly affects the firm performance.

Dimensions

Plum Analytics

Author Biography

Weli Weli, Departemen Akuntansi Fakultas Ekonomi dan Bisnis Universitas Katolik Indonesia Atma Jaya Jakarta

Departemen Akuntansi
Fakultas Ekonomi dan Bisnis
Universitas Katolik Indonesia Atma Jaya Jakarta

 

References

Al Dhaafri, H. S., & Al Swidi, A. K. (2013). The entrepreneurial orientation and the organizational performance: Do Enterprise Resource Planning Systems have a mediating role? A study on Dubai police. Asian Social Science, 10(2), 257-272. https://doi.org/10.5539/ass.v10n2p257

Aversano, L., Grasso, C., & Tortorella, M. (2012). A literature review of Business/IT Alignment Strategies. Procedia Technology, 5, 462-474.

Byrd, T. A., Lewis, B. R., & Bryan, R. W. (2006). The leveraging influence of strategic alignment on IT investment: An empirical examination. Information & Management, 43(3), 308-321. https://doi.org/10.1016/j.im.2005.07.002

Carvalho, H., Azevedo, S. G., & Cruz-Machado, V. (2010). Supply chain performance management: lean and green paradigms. International Journal of Business Performance and Supply Chain Modelling, 2(3-4), 304-333. https://doi.org/10.1504/IJBPSCM.2010.036204

Carvalho, H., Azevedo, S. G., & Cruz-Machado, V. (2012). Agile and resilient approaches to supply chain management: Influence on performance and competitiveness. Logistics Research, 4(1-2), 49-62.

Cebeci, U. (2009). Fuzzy AHP-based decision support system for selecting ERP systems in textile industry by using balanced scorecard. Expert Systems with Applications, 36(5), 8900-8909. https://doi.org/10.1016/j.eswa.2008.11.046

Chan, Y. E., Huff, S. L., Barclay, D. W., & Copeland, D. G. (1997). Business strategic orientation, information systems strategic orientation, and strategic alignment. Information Systems Research, 8(2), 125-150. https://doi.org/10.1287/isre.8.2.125

Chand, D., Hachey, G., Hunton, J., Owhoso, V., & Vasudevan, S. (2005). A balanced scorecard based framework for assessing the strategic impacts of ERP systems. Computers in Industry, 56(6), 558-572. https://doi.org/10.1016/j.compind.2005.02.011

Chang, S. I., Yen, D. C., Ng, C. S. P., Chang, I. C., & Yu, S. Y. (2011). An ERP system performance assessment model development based on the balanced scorecard approach. Information Systems Frontiers, 13(3), 429-450. https://doi.org/10.1007/s10796-009-9225-5

Chin, W. W. (1998). Commentary: Issues and opinion on structural equation modeling. MIS Quarterly, 22(1), vii-xvi.

Crumbly, J., & Fryling, M. (2013). Rocky relationships: Enterprise resource planning and supply chain management. Journal of Information Systems Applied Research, 6(2), 31-39.

Dehning, B., & Richardson, V. J. (2002). Returns on investments in information technology: A research synthesis. Journal of Information Systems, 16(1), 7-30. https://doi.org/10.2308/jis.2002.16.1.7

Detiknet. (2010). Indonesia habiskan Rp 450 Miliar untuk solusi ERP. Retrieved July 27th, 2010 from https://inet.detik.com/business/d-1408001/indonesiahabiskan-rp-450-miliar-untuk-solusi-erp

Dong, X., Liu, Q., & Yin, D. (2008). Business performance, business strategy, and information system strategic alignment: An empirical study on Chinese firms. Tsinghua Science and Technology, 13(3), 348-354. https://doi.org/10.1016/S1007-0214(08)70056-7

Fang, M. Y., & Lin, F. (2006). Measuring the performance of ERP system-from the balanced scorecard perspectives. The Journal of American Academy of Business, 10(1), 256-263.

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.

Ghozali, I. (2011). Struktural Equation Modeling: Metode alternatif dengan Partial Least Square (PLS) (3rd ed.). Semarang: Badan Penerbit Universitas Diponegoro.

Grabski, S. V., Leech, S. A., & Schmidt, P. J. (2011). A review of ERP research: A future agenda for accounting information systems. Journal of Information Systems, 25(1), 37-78.

Holweg, M., & Pil, F. K. (2008). Theoretical perspectives on the coordination of supply chains. Journal of operations management, 26(3), 389-406. https://doi.org/10.1016/j.jom.2007.08.003

Kang, S., Park, J. H., & Yang, H. D. (2008). ERP alignment for positive business performance: Evidence from Korea’s ERP market. Journal of Computer Information Systems, 48(4), 25-38.

Karim, J., Somers, T. M., & Bhattacherjee, A. (2007). The impact of ERP implementation on business process outcomes: A factor-based study. Journal of Management Information Systems, 24(1), 101-134.

https://doi.org/10.2753/MIS0742-1222240103

Kompas. (2009). Jumlah perusahaan pengguna SAP semakin bertambah. Retrieved July 11th, 2009 from https://regional.kompas.com/read/2009/07/11/10161798/jumlah.perusahaan. pengguna.sap.semakin.bertambah...

Lewandowski, J., Salako, A. O., & Garcia-Perez, A. (2013). SaaS Enterprise Resource Planning Systems:Challenges of their adoption in SMEs. In 2013 IEEE 10th International Conference on E-Business

Engineering (ICEBE).

Marrone, M., & Kolbe, L. M. (2011). Uncovering ITIL claims: IT executives’ perception on benefits and business-IT alignment. Information Systems and E-Business Management, 9(3), 363-380. https://doi.org/10.1007/s10257-010-0131-7

Metrodata. (2009). Metrodata annual report 2009. Retrieved from http://www.metrodata.co.id/web/images/annualreport/2012-06-04-144146.pdf

Morris, J. J. (2011). The impact of Enterprise Resource Planning (ERP) systems on the effectiveness of internal controls over financial reporting. Journal of Information Systems, 25(1), 129-157. https://doi.org/10.2308/jis.2011.25.1.129

Ravishankar, M. N., Pan, S. L., & Leidner, D. E. (2011). Examining the strategic alignment and implementation success of a KMS: A subculturebased multilevel analysis. Information Systems Research, 22(1), 39-59. https://doi.org/10.1287/isre.1080.0214

Su, Y. F., & Yang, C. (2010a). A Structural Equation Model for analyzing the impact of ERP on SCM. Expert Systems with Applications, 37(1), 456-469. https://doi.org/10.1016/j.eswa.2009.05.061

Su, Y. F., & Yang, C. (2010b). Why are Enterprise Resource Planning Systems indispensable to supply chain management? European Journal of Operational Research, 203(1), 81-94. https://doi.org/10.1016/j.ejor.2009.07.003

Tallon, P. P., & Pinsonneault, A. (2011). Competing perspectives on the link between strategic information technology alignment and organizational agility: Insights from a mediation model. MIS Quarterly, 35(2), 463-486. https://doi.org/10.2307/23044052

Velcu, O. (2010). Strategic alignment of ERP implementation stages: An empirical investigation. Information & Management, 47(3), 158-166. https://doi.org/10.1016/j.im.2010.01.005

Venkatraman, N. (1989). Strategic orientation of business enterprises: The construct, dimensionality, and measurement. Management science, 35(8), 942-962. https://doi.org/10.1287/mnsc.35.8.942

Wieder, B., Booth, P., Matolcsy, Z. P., & Ossimitz, M. L. (2006). The impact of ERP systems on firm and business process performance. Journal of Enterprise Information Management, 19(1), 13-29. https://doi.org/10.1108/17410390610636850

Zhao, L., Huo, B., Sun, L., & Zhao, X. (2013). The impact of supply chain risk on supply chain integration and company performance: A global investigation. Supply Chain Management: An International Journal, 18(2), 115-131. https://doi.org/10.1108/13598541311318773

Downloads

Published

2018-11-30
Abstract 6581  .
PDF downloaded 354  .