Understanding the Value of Enterprise Resource Planning (ERP) Systems

Teboho Talasi, Lisa F Seymour
InSITE 2022  •  2022  •  pp. 026
Aim/Purpose: The purpose of this research is to explain how ERP systems provide value to companies in Lesotho, a developing country.

Background: The percentage of organizations with Enterprise Resource Planning systems (ERPs) has been increasing in both developed and developing nations. Despite the popularity of ERPs, the literature has shown that ERP failure is a major challenge facing organizations. Companies invest a considerable amount of money into these systems, expecting a return on in-vestment. Yet, findings on the benefits that organizations accrue from the implementation of ERPs are mixed. There are concerns that in developing countries the return is low.

Methodology: An online survey strategy was used for collecting data from companies. Using the simple random method, 169 companies using ERP systems were selected.

Contribution: The core contribution is in supporting proposed relationships that had not been tested prior. The empirical results of this study describe the Lesotho ERP context. The results also emphasize the importance of the use of ERP in determining the value of ERPs.

Findings: This study has confirmed that ERP usage and business processes improvements are the main factors affecting ERP value, and ERP usage is the strongest determiner of ERP value. The finding also emphasizes the importance of organizational culture and training.

Recommendations for Practitioners: Companies are encouraged to focus on training users and build a supportive organizational culture.

Recommendations for Researchers: Context plays a vital role in determining ERP value and hence should be taken into account when explaining ERP value.

Impact on Society: The paper highlights the impact of organizational culture on ERP usage and business process improvement and hence ERP value.

Future Research: While this study focused on training quality, further studies could focus on the impact of training quantity and ongoing training.
ERP value, TOE, ERP success factors
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