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Title: The impact of integrating enterprise resource planning systems with business intelligence systems on decision-making and organisational performance An empirical study of the semiconductor industry
Author: Hou, Chung-Kuang
ISNI:       0000 0004 2676 7314
Awarding Body: The University of Manchester
Current Institution: University of Manchester
Date of Award: 2009
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There is currently a trend for companies to invest in Business intelligence (BI) systems and integrate them with their original ERP systems in order to enhance their management decision-making capability. Even though much attention has been paid to the decision-making benefits of integrated systems in practice, limited academic research has investigated the issue of decision-making improvement. Therefore. the motivation for this study is to examine the impact of integrated ERP and BI (abbreviated as ERPBI) systems on decision-making and overall organisational performance, and to explore the relationship between decision-making performance and organisational performance. The study introduces a comprehensive measurement instrument for assessing the impact of ERPBI systems on both decision-making and organisational performance. A survey was conducted involving 108 companies in the semiconductor industry in Taiwan. The results of the survey indicate firstly, that ERPBI system usage in organisations is positively related to decision-making performance. Secondly, decision-making performance can mediate the effect of ERPBI system usage on organisational performance. Thirdly, organisations using ERPBI systems achieve higher levels of decision-making and organisational performance compared to organisations which only use ERP systems. The theoretical implications of the research include developing multidimensional measurement scales to assess decision-making performance and organisational performance. The decision-making performance construct consists of five dimensions: decision-making process, system quality, data quality & system reliability. decision communication and system flexibility. Based on the balanced scorecard approach developed by Kaplan and Norton, the organisational performance construct consists of four dimensions: financial, customer, internal process, and learning & growth perspectives. The measurement scales were tested using rigorous statistical methods including convergent validity, discriminant validity, reliability, and the validation of second-order constructs. The development of these measurements is expected to stimulate and facilitate theory development and empirical investigation in this field. The work facilitates understanding of the current adoption rate of ERPBI systems and the characteristics of those adopted in Taiwan's semiconductor industry. Moreover. the survey instrument of the study could be employed in the post-implementation phase of ERP or ERPBI systems as a diagnostic mechanism to assess whether anticipated decision-making benefits were realised, to examine whether the usage of the new system improved the overall firm's performance, and to explore how to further improve decision-making and organisational performance.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available