Impact of Supply Chain

Management (SCM) and

Enterprise Resource
Planning systems(ERP)
Writer: on Organizational
Nabil Mzoughi Performance and
Nedra Bahri Competitive Advantage:
Mohamed Skander Ghachem, Case of Tunisian
copyright of Journal of Global Companies
Information techonology
Oleh : RHODLOTUL ANISAH
Management
KAP2017
 What are the consequences of SCM and ERP
system implementation strategy on organizational
performance and competitive advantage?
 To integrate all supply chain activities and ERP in a global structure and to
investigate their relationships with competitive advantage and organizational
performance. It examines the relationships between the proposed framework's
variables in the Tunisian market.
 Executives prompted to maximize performance find difficulties in implementing
an SCM strategy.
 So, This research provides managers with a practical tool for the evaluation of
SCM practices and ERP systems, through the development and validation of
multidimensional and operational measurements.
 RESEARCH HYPOTHESES
1. SCM practices and competitive advantage
The first research hypothesis treats the relationship between SCM practices and
competitive advantage.

Hl: SCM practices adoption has a positive impact on competitive advantage

2. SCM Practices and organizational performance

Two types of criteria are used to measure organizational performance

financial criteria and market criteria.
 Financial performance includes return on investment (ROI), sales profit margin
and ROI growth.
 Market performance refers to market share, sales growth, market share growth
and overall competitiveness

H2: SCM practices adoptions have a positive impact on organizational performance

3. Competitive advantage and organizational performance

Competitive advantage entails the ability of a company to vie

its competitors and to improve its economic performance.

H3: The competitive advantage has a positive impact on organizational performance.

4. ERP system and SCM practices

ERP are becoming the primary source of information in supply chain

management. In order to achieve supply chain efficiencies, companies need to
exchange a large amount of planning and operational data: information about
annual contracts, periodical reports, real-time delivery and invoicing data.

H4: ERP system implementation has a positive impact on SCM practices

5. ERP and organizational performance

Impact of ERP system adoption on organizational performance by

comparing companies using ERP systems and others that do not use them.
They show that both ROI and turnover are improved significantly for ERP
systems users over a three years period though results vary with companies' size.

H5: ERP system has a positive impact on organizational performance

6. ERP system and competitive advantage

ERP system allows major changes in culture and behaviors which are a
crucial source of economic advantage.

H6: ERP system has a positive impact on competitive advantage.

The conceptual framework
 METHODOLOGY
The survey was conducted in three ways :
1) e-mails
2) face to face
3) phone calls

Respondents were chosen according to their knowledge about SCM

and ERP
The sample included companies in three fields :
1. high technology
2. industry
3. trade

Two hundred and sixteen respondents were involved; they were either executive
managers or managers of different services: financial team, production, human
resources, logistics, sales, marketing.

Questions involved measures of SCM practices, ERP system, competitive

advantage and organizational performance using a 5 point Likert scale (from 1 :
disagree very strongly to 5 : agree very strongly).
Data are analyzed using :

1. principal components analysis

2. relationships are tested using linear regression
 1. principal components analysis
Principal component analyses (PCA) were used to test concepts' validity
and reliability. The aim is to reduce the number of items and compact information
in a limited number of factors.
Reliability Results
 2. Linear Regression Results
 A set of linear regressions was conducted to examine
relationships between variables. Result revealed that
SCM practices dimensions do not have a significant effect
on competitive advantage dimension.
 The quality and the level of exchanged information have
a significant effect on financial and market performance.
 The effect of competitive advantage on organizational
performance is positive but minor.
 CONCLUSION

– This research examines the impact of SCM practices and ERP systems on Tunisian
companies' organizational performance and competitive advantage. The
development and the validation of a multidimensional instrument allow managers
to evaluate the performance of their supply chain and information system.
– Data analysis reveals the importance of SCM and ERP systems adoption. It shows
their positive impact on organizational performance and competitive advantage.
These results contrast with previous researches suggesting that the effect of these
systems is not significant. This can be explained by the dissimilarity of the research
context, the novelty of these concepts, the less maturity of Tunisian market and the
differences between strategic partnerships of Tunisian companies.
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