THE IMPACT OF ERP USE AND CAPABILITIES ON ITS VALUE IN THE MANUFACTURING INDUSTRIES WHO USES ORACLE AS VENDOR IN PAKISTAN

Abstract

Purpose: This study assesses the effect of some extended Enterprise Resource Planning (ERP) capabilities (Collaboration, Analytics, Web-portals, Add-ons) and ERP use on ERP value within a manufacturing industry. Methodology & Design: Quantitative method is used to investigate and collect data for the future observations. A questionnaire was designed to measure the research framework aspects, the questionnaire was constructed on Likert scale (i.e., Scale of 1 to 5; Lowest to Highest) which contains questions related to our independent variables (i.e., Collaboration, Analytics, Web-Portals, Add-ons), our moderating variable (i.e., ERP use), and our dependent variable (i.e., ERP value). Findings: The results indicates that even though the mentioned independent variable have significant impact on ERP value, yet Web-Portals did not prove to have significant impact on ERP value but all other did, therefore 2 out of our 9 hypotheses were rejected and 7 were accepted. The results clearly show how ERP capabilities can have a great impact on business performance despite ofthe disproven or rejected hypothesis. Limitations: Few limitations were faced while collecting the data for this research, firstly would be time constraint since time was not enough to collect enough data or responses to further enhance our results also few organizations were available to conduct the research which in return stood as an obstacle for gathering more and more data to prove the given hypothesis. Recommendations: • The manufacturing industries should consider focusing on ERP capabilities to enhance the impact of ERP value within an organization. • It is through these capabilities an organization could benefit the most out oftheir ERP system implemented and therefore acquire a competitive advantage over others in terms of efficiency and a better all over performance ofthe business unit or the firm. • The result ofthis study clearly indicates that having an ERP system implemented is not enough to acquire the maximum outcome. • How is the ERP being utilized also plays an important role in enhancing the capabilities and the value being generated for a company against their investments on the ERP systems