The Role Of Enterprise Resource Planning System’s Assimilation Between Top Level Management Support And Organizational Performance: Evidence From Manufacturing Sector Of Lahore

Abstract

Enterprise Resource Planning (ERP) systems have become increasingly popular in organizations as a means to improve efficiency and effectiveness. This study is an extension of the enterprise resource planning (ERP) assimilation research from individual to organizational levels, that it is individual users that convert the potential of ERP systems into organizational performance. Moreover, the success of ERP implementation largely depends on the support of top management. This study aims to examine the relationship between top management support and organizational performance through ERP assimilation in the manufacturing sector of Lahore. We develop and test a theoretical model to examine how enterprise systems are assimilated into organizations once they have been implemented. Using a survey questionnaire, data was collected from 300 manufacturing firms in Lahore. The results indicate a positive relationship between top management support and organizational performance mediated through ERP assimilation, user satisfaction and individual performance. The findings highlight the importance of top management support in the successful implementation and assimilation of ERP systems and its positive impact on organizational performance. This study provides insights regarding the significance of individual level assimilation within an organization in the post-implementation phase and provide managerial insights on how firms could enhance ERP assimilation at the individual level that could affect the organizational level assimilation.