Implications of Supply Chain Management on the Connection between Business Performance and Enterprise Resource Planning Framework

Abstract

Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) are the two fundamental Information Technology (IT) investment advancements that businesses are resorting to in the modern age. These are the advancements and options which are known to be essential in literature as a contributing fact to the enhancement of Business Performance (BP). In that regard, the main purpose of this contribution is to evaluate the adoption of ERP and its effects of BP through the option of SCM. This paper presents a novel model that applies enterprise resource planning with the option of SCM to effectively optimize BP in the competitive world. The structural equation framework is thus fundamental for testing of the model and how its fits the level of the four projected research hypotheses. The essential set of data for this analysis was gathered from companies in Malaysia. The findings in this research have been supported using empirical evidences, availability of positive factors of ERP for the option of supply chain ultimately amounts to enhanced BP.