Academic journal article Asian Social Science

The Entrepreneurial Orientation and the Organizational Performance: Do Enterprise Resource Planning Systems Have a Mediating Role? A Study on Dubai Police

Academic journal article Asian Social Science

The Entrepreneurial Orientation and the Organizational Performance: Do Enterprise Resource Planning Systems Have a Mediating Role? A Study on Dubai Police

Article excerpt

Abstract

Purpose: This study was set up to examine the mediating role of ERP system on the relationship between entrepreneurial orientation and organizational performance.

Design/methodology/approach: To examine the hypothesized model developed for this study, the survey quantitative research design was employed. For that, the data were collected from Dubai police departments. Out of 150 questionnaires distributed, 111 usable questionnaires were returned. Employing the partial least squares structural equation modeling for data analysis.

Findings: Based on the statistical results, the effect of entrepreneurial orientation and enterprise resource planning on organizational performance were confirmed. In addition, ERP was found to partially mediate the effect of EO on organizational performance. Further details and valuable implications of this study were discussed throughout the study.

Practical implications: The results of this study have many practical implications. The results will help managers to take the proper decision when deciding to implement ERP system in their organizations. The ERP can help managers with strong EO to achieve the maximum performance in organizations and to remain competitive in the market.

Originality/value: This study is considered one of the very few empirical studies that examine the effect of EO on ERP and the mediating effect of ERP on the EO-performance relationship.

Keywords: entrepreneurial orientation (EO), enterprise resource planning (ERP), organizational performance (OP), Dubai police (DP), paper type research paper

(ProQuest: ... denotes formula omitted.)

1. Introduction

Nowadays, organizations around the world need information technology (IT) to improve the flow of information across the whole organization, streamline business processes, establish linkages with supplier, reduce costs, offer product variety, and reduce the time response to customer to meet their expectations and needs (Beheshti, 2006). Because of the huge volume of data obtained by any business organization, it is very important to have an integrated system that can help organizations in managing and organizing data to be ready for use by decision makers (Al-Dhaafri, Yusoff, & Al-Swidi, 2013). They added that Enterprise Resource Planning (ERP) systems have been acquiring a growing importance and popularity as a significant source for achieving organizational performance. Davenport (1998) reported that ERP systems are considered as the most significant development in the corporate information technology; as one the most innovation in technology in the last two decades (Jha & Joshi, 2007).

ERP systems have been widely used in the developed countries either in public or private sectors. However, the investment in ERP systems in developing countries is still in its early phase for different reasons (Huang & Palvia, 2001). It has been found by many researchers that there are conflicting results regarding the relationship between ERP and organizational performance. While some of them confirmed the added value to organizations when employing ERP systems (Davenport & Brooks, 2004; Irani & Love, 2001), other researchers found that ERP may have a negative impact on performance (Hunton, Lippincott, & Reck, 2003; Velcu, 2007).

To face today's business challenges, entrepreneurship has become an important concept to sustain competitive advantages, acquire successfulness, and increase organizational performance (Covin & Slevin, 1986). Entrepreneurial orientation in the entrepreneurship literature has several definitions. One of them has been defined by Zahra and Covin (1995) where they defined EO as the potential instrument for inspiration established organizations to gain high performance through innovation, risk-taking, and proactiveness. These three dimensions of EO have been suggested earlier by many writers such as Miller (1983), and later Lumpkin and Dess (1996) added aggressiveness and autonomy. …

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