Enterprise Resource Planning Implementation in Thailand’s MSMEs for Enhancing Operational Performance
Keywords:
Project Management, Enterprise Resource Planning, Operational Performance, MSMEsAbstract
This study examines the factors that influence the successful implementation of Enterprise Resource Planning (ERP) systems and how these systems help improve operational performance among Micro, Small, and Medium-sized Enterprises (MSMEs) in Thailand. The research focuses on several variables: top management commitment, user involvement, business process reengineering, project management, ERP teamwork and composition, ERP implementation, and operational performance. The sample includes 496 employees with a bachelor’s degree or higher and at least one year of experience working in MSMEs. A pilot test with 50 participants was conducted to check the questionnaire’s reliability using the Item-Objective Congruence (IOC) index and Cronbach’s alpha. Judgmental, convenience, and snowball sampling methods were used to recruit participants. Data were analyzed using Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). The results show that top management commitment, user involvement, business process reengineering, and ERP teamwork and composition all have a significant effect on ERP implementation. ERP implementation, in turn, has a positive effect on operational performance. However, project management does not significantly influence ERP implementation. Overall, the study suggests that MSME managers in Thailand can strengthen business performance and competitiveness by focusing on the key factors that support effective ERP adoption.
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