Paper
ERP Business Process Attributes to Create Competitive Advantage
Published Jan 25, 2021 · DOI · I. Alomari, Ziad Aldammagh
International Journal of Business and Economics Research
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Abstract
During the industry 4.0 revolutions and business intelligence era, in which automation and data exchange in manufacturing technologies becomes a prerequisite. Therefore, companies aspiring for achieving competitive advantage need to be updated with the latest technologies. Enterprise Resource Planning (ERP) systems are among the most up-to-date integrated information systems which play particularly important role in overseeing and coordinating all the activities, information and functions and information of a business from common database. Despite the fact that previous studies indicate a lack of understanding of the relationship between ERP systems and competitive advantage using each of ERP business processes attributes (i.e. integration, standardization, routinaziation and centralization) need to be investigated. Based on the 114 functional answers, the data was examined utilizing the following approach: structural equation modeling (SEM) via the software: partial least square (PLS). The results offer empirical evidence on the importance of every ERP attribute in determining firm’s competitive. Evidently, there is a positive association between such variables and the competitive benefit. Such findings present an insight on the association between ERP attributes and the competitive advantage of an enterprise, which could be an input for businesses so as to encounter the industrial digitalization and the era of business intelligence.
ERP business process attributes (integration, standardization, routinaziation, and centralization) positively impact a firm's competitive advantage, providing insights for businesses to adapt to industrial digitalization and business intelligence.
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