IDEAS home Printed from https://ideas.repec.org/a/sae/vision/v23y2019i4p341-356.html
   My bibliography  Save this article

Does Integration of Business Processes and ERP Improves Supply Chain Performances? Evidence from Indian Capital Goods Industry

Author

Listed:
  • Santosh Kumar Pattanayak
  • Supriyo Roy
  • Biswajit Satpathy

Abstract

In today’s competitive market environment coupled with post effect of globalization, managing supply chains is critical to any business. Rather than becoming function-oriented, firms are now selectively deploying valuable resources on automated processes operated through technology-enabled ‘information communication’ platforms to improve performance. However, there are visible gaps in integrating business processes with information-enabled domain like enterprise resource planning (ERP), which has the potential to bring in the radical improvement in firm’s performance. Again, integration always does not come with positive results, specifically to Indian capital goods sector. Under this consideration, an attempt has been made to explore this unknown domain with conceptualization of a hypothesized model. Data for validation of this study were collected through questionnaire from 25 different units under Indian capital goods industry and relationship proposed in the hypothesized framework is tested by using structural equation modelling. Analysis of result indicates a favourable disposition of the model framework wherein synergy between business processes and ERP, on an integrated mode, can fetch higher level of performance. Considering multiple performance-related issues deterring growth of India’s capital goods industry, it is strongly recommended to synergize business processes under information system domain in order to make business sustainable.

Suggested Citation

  • Santosh Kumar Pattanayak & Supriyo Roy & Biswajit Satpathy, 2019. "Does Integration of Business Processes and ERP Improves Supply Chain Performances? Evidence from Indian Capital Goods Industry," Vision, , vol. 23(4), pages 341-356, December.
    • Handle: RePEc:sae:vision:v:23:y:2019:i:4:p:341-356
    DOI: 10.1177/0972262919862902
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0972262919862902
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0972262919862902?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Eskandarpour, Majid & Dejax, Pierre & Miemczyk, Joe & Péton, Olivier, 2015. "Sustainable supply chain network design: An optimization-oriented review," Omega, Elsevier, vol. 54(C), pages 11-32.
    2. Akkermans, Henk A. & Bogerd, Paul & Yucesan, Enver & van Wassenhove, Luk N., 2003. "The impact of ERP on supply chain management: Exploratory findings from a European Delphi study," European Journal of Operational Research, Elsevier, vol. 146(2), pages 284-301, April.
    3. Olhager, Jan & Prajogo, Daniel I., 2012. "The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms," Omega, Elsevier, vol. 40(2), pages 159-165, April.
    4. Kelle, Peter & Akbulut, Asli, 2005. "The role of ERP tools in supply chain information sharing, cooperation, and cost optimization," International Journal of Production Economics, Elsevier, vol. 93(1), pages 41-52, January.
    5. Kim, Soo Wook, 2009. "An investigation on the direct and indirect effect of supply chain integration on firm performance," International Journal of Production Economics, Elsevier, vol. 119(2), pages 328-346, June.
    6. Bendoly, Elliot & Kaefer, Frederick, 2004. "Business technology complementarities: impacts of the presence and strategic timing of ERP on B2B e-commerce technology efficiencies," Omega, Elsevier, vol. 32(5), pages 395-405, October.
    7. Stadtler, Hartmut, 2005. "Supply chain management and advanced planning--basics, overview and challenges," European Journal of Operational Research, Elsevier, vol. 163(3), pages 575-588, June.
    8. Su, Yi-fen & Yang, Chyan, 2010. "Why are enterprise resource planning systems indispensable to supply chain management?," European Journal of Operational Research, Elsevier, vol. 203(1), pages 81-94, May.
    9. Nathalie Fabbe-Costes & Marianne Jahre & Christine Roussat, 2009. "Supply Chain Integration: The role of Logistics Service Providers," Post-Print hal-01419324, HAL.
    10. Nathalie Fabbe-Costes & Marianne Jahre, 2007. "Supply Chain Integration improves performance - The emperor’s new suit?," Post-Print hal-01419273, HAL.
    11. Gunasekaran, A. & Ngai, E. W. T., 2004. "Information systems in supply chain integration and management," European Journal of Operational Research, Elsevier, vol. 159(2), pages 269-295, December.
    12. Gunasekaran, A. & Patel, C. & McGaughey, Ronald E., 2004. "A framework for supply chain performance measurement," International Journal of Production Economics, Elsevier, vol. 87(3), pages 333-347, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    2. Kayakutlu, Gulgun & Buyukozkan, Gulcin, 2011. "Assessing performance factors for a 3PL in a value chain," International Journal of Production Economics, Elsevier, vol. 131(2), pages 441-452, June.
    3. Ýbrahim S. Karakadýlar & Ben J. Hicks, 2015. "Exploring the Moderating Role of Lean Production on Supplier Performance: An Empirical Study of Turkish Automotive Part Suppliers," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 29(2), pages 73-97.
    4. Gunasekaran, Angappa & Ngai, Eric W.T., 2012. "The future of operations management: An outlook and analysis," International Journal of Production Economics, Elsevier, vol. 135(2), pages 687-701.
    5. Kembro, Joakim & Näslund, Dag & Olhager, Jan, 2017. "Information sharing across multiple supply chain tiers: A Delphi study on antecedents," International Journal of Production Economics, Elsevier, vol. 193(C), pages 77-86.
    6. Goknur Arzu Akyuz & Guner Gursoy, 2020. "Strategic management perspectives on supply chain," Management Review Quarterly, Springer, vol. 70(2), pages 213-241, May.
    7. Rok Lee, 2021. "The Effect of Supply Chain Management Strategy on Operational and Financial Performance," Sustainability, MDPI, vol. 13(9), pages 1-18, May.
    8. Sivadasan, Suja & Smart, Janet & Huaccho Huatuco, Luisa & Calinescu, Anisoara, 2013. "Reducing schedule instability by identifying and omitting complexity-adding information flows at the supplier–customer interface," International Journal of Production Economics, Elsevier, vol. 145(1), pages 253-262.
    9. Hassini, Elkafi & Surti, Chirag & Searcy, Cory, 2012. "A literature review and a case study of sustainable supply chains with a focus on metrics," International Journal of Production Economics, Elsevier, vol. 140(1), pages 69-82.
    10. Sang M. Lee & David L. Olson & Sang-Heui Lee & Taewon Hwang & Matt S. Shin, 2007. "Entrepreneurial applications of the lean approach to service industries," The Service Industries Journal, Taylor & Francis Journals, vol. 28(7), pages 973-987, November.
    11. Maiga, Adam S. & Nilsson, Anders & Ax, Christian, 2015. "Relationships between internal and external information systems integration, cost and quality performance, and firm profitability," International Journal of Production Economics, Elsevier, vol. 169(C), pages 422-434.
    12. Kiyong Om & Jungmann Lee & Juno Chang, 2007. "Using supply chain management to enhance industry—university collaborations in IT higher education in Korea," Scientometrics, Springer;Akadémiai Kiadó, vol. 71(3), pages 455-471, June.
    13. Soto-Silva, Wladimir E. & Nadal-Roig, Esteve & González-Araya, Marcela C. & Pla-Aragones, Lluis M., 2016. "Operational research models applied to the fresh fruit supply chain," European Journal of Operational Research, Elsevier, vol. 251(2), pages 345-355.
    14. Qrunfleh, Sufian & Tarafdar, Monideepa, 2014. "Supply chain information systems strategy: Impacts on supply chain performance and firm performance," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 340-350.
    15. Becker, Jörg & Vilkov, Lev & Weiß, Burkhard & Winkelmann, Axel, 2010. "A model based approach for calculating the process driven business value of RFID investments," International Journal of Production Economics, Elsevier, vol. 127(2), pages 358-371, October.
    16. Abdurrezzak Sener & Mehmet Barut & Ali Dag & Mehmet Bayram Yildirim, 2021. "Impact of commitment, information sharing, and information usage on supplier performance: a Bayesian belief network approach," Annals of Operations Research, Springer, vol. 303(1), pages 125-158, August.
    17. Li, Ling & Markowski, Carol & Xu, Li & Markowski, Edward, 2008. "TQM--A predecessor of ERP implementation," International Journal of Production Economics, Elsevier, vol. 115(2), pages 569-580, October.
    18. Yu, Wantao & Jacobs, Mark A. & Salisbury, W. David & Enns, Harvey, 2013. "The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 146(1), pages 346-358.
    19. Md. Rokonuzzaman, 2018. "The Integration of Extended Supply Chain with Sales and Operation Planning: A Conceptual Framework," Logistics, MDPI, vol. 2(2), pages 1-21, March.
    20. Han, Jeong Hugh & Wang, Yingli & Naim, Mohamed, 2017. "Reconceptualization of information technology flexibility for supply chain management: An empirical study," International Journal of Production Economics, Elsevier, vol. 187(C), pages 196-215.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:vision:v:23:y:2019:i:4:p:341-356. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.