Impact of Supply Chain Management on the Relationship between Enterprise Resource Planning System and Organizational Performance

Two of the essential IT investment options that managers resort are supply chain management and enterprise resource planning. These options are known in the relevant literature as factors contributing to the enhancement of organizational performance. The objective of this study is to investigate the enterprise resource planning adoption and its influence on organizational performance through supply chain management. This article suggests a new model which applies enterprise resource planning with supply chain management to optimal organizational performance. Structural equation model was utilized to test the model fitting level and the four proposed hypotheses. The required data for this research was collected from 174 companies in Malaysia through prepared surveys. The results support, through empirical evidences, the existence of positive effects of enterprise resource planning on the supply chain which ultimately results in improved overall performance of the studied organizations.