Relationships among ERP, supply chain orientation and operational performance: An analysis of structural equation modeling

The purpose of this paper is to investigate the interactions among enterprise resource planning (ERP) practices, supply chain orientation (SCO), and operational performance (OPER) by forming a macro perspective based on a scientific foundation powered by a resource-based view.

Exploratory and confirmatory factor analyses were used to verify the underlying dimensions of SCO and ERP practices. The covariance-based structural equation modeling was employed to test the direct and indirect effects of SCO and ERP practices constructs on OPER.

Results revealed that SCO has significant and positive effects on OPER, whereas ERP practices do not. Moreover, the indirect effect of ERP practices with the mediating effects of SCO is stronger than their direct effects. In addition, the origin of the ERP practices is found to be an important critical success factor.

Although much research has investigated the direct effect of ERP practices on performance, this study points out the importance of SCO in observing the stronger impacts of ERP practices.