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You searched Library Catalogue - Publisher: McGraw Hill,
Call Number (WOU) SP CEMBA 2017 24
Author Ng, Hsien Huey
Title A study on multidimensional capabilities intervening successful ERP implementation : an empirical assessment on small medium scale industry in Northern Malaysia. / Ng Hsien Huey
Abstract Advancement of information and communication technology (ICT) has changed how organisations work around the globe. Introduction of ICT tools have brought changes in information sharing, its quality and medium of operating business. Enterprise Resource Planning (ERP) system is one of the ICT tools used by organisations to increase their effectiveness and competitiveness in the global market, especially multinational companies. SMEs are slowly adopting ERP system into their organisation, however, Malaysian SMEs did not show much interest in implementing ERP system into their organisation. Therefore, this research study aims to identify and analyse the various capabilities necessary for successful ERP implementation in SMEs. The scope of this study focuses on SMEs in the manufacturing and the retail and services sectors in the state of Penang (island and mainland), Malaysia. The dependent variable being the Perceived Benefits of ERP System Implementation. The relevant of independent variables being Top Management Support, Business Plan and Vision, Business Process Reengineering, Readiness and Education and Training, which is also called multidimensional capabilities in ERP system implementation. Lastly, the intervening variable being the User Participation. With that, online questionnaire survey was developed for this study and was gathered by disseminating 70 questionnaires to SMEs at the local Penang state using convenience sampling, and 54 of the questionnaire responded a yield of approximately 77% of response. The survey consisted of two parts – demographic survey and the evaluation of the seven variables. A pilot test was first carried out on 11 respondents in order to assess the validity of the survey questions, before the full survey was undertaken. Statistical techniques such as reliability test, descriptive statistic, analysis of variance (ANOVA), correlation, regression analysis were employed by using IBM SPSS version 22 software. Findings of the study revealed all five multidimensional capabilities of ERP system implementation were significant towards Perceived Benefits at 5% of significant level, with the two most significant, as stated in the predictive model being, Readiness and Education and Training. User Participation was revealed to have significant relationship towards Perceived Benefits. Further results suggested that by considering generation profiles, User Participation caused partial intervening impact between Top Management Support and Perceived Benefits. Additionally, no intervening effect of User Participation upon Business Plan and Vision, and Business Process Reengineering towards Perceived benefits was found. Lastly, full intervening effect of User Participation upon Readiness and Education and Training towards Perceived Benefits was found. Demographics profiles like ERP usage and Interaction with Suppliers were found to be significant towards ERP Readiness. Industry type was found to be insignificant towards User Participation. The limitations encountered in this study included generalization, scope of factors, geographical restriction, social norms and cultural influence. It was proposed that future research to adopt a larger study area with additional variables taken from existing research. The study findings met the overall research objectives posed as well as provided solutions for the problem statement which addressed the lack of in-depth studies; whilst contributing to new empirical insights by establishing a predictive model for the successful implementation of ERP system in SMEs. This research study provides industry practitioners with insights into how the multidimensional capabilities influence the ERP system implementation in SMEs. The study suggests that in order to ensure successful implementation of ERP system in SMEs, top management should build strategies to better address the benefits of ERP system and to provide confident and value add to industry practitioners to stay positive and competitive advantage while adopting ERP system into their organisation.
Notes Final project report submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration (CeMBA)
Publisher/Year Penang : School of Business and Administration, Wawasan Open University, 2017
Subject Technology.

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