Effect of enterprise resource planning system adoption on firm's performance among medium size enterprises in Nigeria

This study focuses on the effect of Enterprise Resource Planning (ERP) system adoption on firm's performance among medium-sized enterprises organization in Nigeria. The main objective of the study is to examine the mediating role of ERP system adoption on the relationship between performance of medium-sized enterprises (PME) and Organization Culture (OC), Communication Process (CP), Organization Structure (OS), IT readiness (ITR), Technological Change (TC), Government Policy (GP), Information Access (IA) & Technology Infrastructure Support (TIS). This study also included the role of top management support (TMS) as a moderating variable on the relationship between ERP and PME. The research framework has been established based on theories such as Resource Based View, Contingency Theory, and Diffusion of Innovation. The data were collected from the medium-sized enterprise organizations operating in South Western Nigeria and a
cross-sectional survey and were applied.The systematic random sampling was used to choose the sample. A total of 658 questionnaires were distributed and 374 were returned, out of which 355 were useable. The data analysis was performed through Smart PLS 3.0 and SPSS software. The results showed that CP, ERP, GP, IA, ITR, OC, OS, TC, TIS and TMS have significant direct relationship with the ERP and PME. However, GP is not significant with ERP adoption. In fact, IA, ITR, OC, OS and TC have no significant relationship with PME. Hence, ERP system adoption mediates the relationship between the CP, OC, OS, TC and TIS with PME. The findings show that CP, OC, OS, TC, TIS will influence the performance of medium enterprises in the adoption of ERP. The findings also confirm that the top management support plays an important role in moderating the relationship between ERP and PME. The findings provide important insights to CEO, directors, managers, policy-makers and researchers to understand the important use of ERP system that will enhance the performance of medium-sized enterprise organizations in Nigeria. Equally, it provides further explanation to the existing literature by empirically
extending the theory of adoption and implementation of ERP system to enhance performance of medium-sized enterprises firm.