Does Usage of ERP Systems in Biotechnology Firms Improve their Financial Performance? Role of Business Model Innovation and Top Management Support.

Dr. Muhammad Haseeb
Taylor's Business School (TBS), Taylors University Lakeside Campus Subang Jaya Selangor Malaysia

DOI:https://doi.org/10.5912/jcb1524

Abstract:

The Enterprise Resource Planning (ERP) system’s role in managing business processes has become more pronounced with time. The study aimed to assess whether using an ERP system impacts the performance of biotechnologies firms (FP). The study undertook Business Model Innovation (BMI) and Top Management Support (TMS) as mediators. Data was collected from managers in Biotechnology companies in Malaysia through purposive sampling. A sample of 276 respondents was analyzed using confirmatory factor analysis and structural equation modeling for evaluating the model fitness and structural linkages. The results showed no significant association between the ERP system and FP. Nevertheless, it was found that BMI and TMS significantly mediate the relationship between ERP systems and FP. The findings of the study have added empirical evidence to the existing literature on ERP systems. They are useful in helping managers and decision-makers in organizations to take the necessary steps to implement and use ERP systems. Business model innovation and top management support are important practices in using ERP systems to boost financial performance.