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Metropolitan Journal of Business and Economics

Enterprise resource planning system characteristics and employee performance in small and medium enterprises: a resource-based view from Uganda

Authors: Baingana Michael

Journal: Metropolitan Journal of Business and Economics (MJBE)

Volume/Issue: Volume 4 - Issue 1

Published: 01 Jan 1970


Abstract

Drawing on the resource-based view (RBV), A cross sectional research design was used to examine the influence of three ERP characteristics (system integration, centralized database, and customization) on employee performance in Movit Products Limited. Survey data from 68 employees were analyzed using Pearson correlation and multiple regression. Results reveal strong positive relationships between all three ERP characteristics and employee performance (r = 0.833 for integration, r = 0.866 for centralized database, and r = 0.903 for customization; p < .001). Regression analysis shows that the three characteristics explain 78.3% of variance in employee performance (adjusted R² = 0.783). The study extended RBV theory to the SME in Uganda by showing that ERP systems become valuable, rare, inimitable, and organizationally embedded resources when purposefully configured. Practical implications include the need for continuous training, userinvolved customization, and regular performance audits of ERP deployments in resource-constrained environments.
Keywords

Enterprise Resource Planning, employee performance, system integration, centralized database, customization, resourcebased view, Small and Medium Enterprise, Uganda

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