IMPACT OF ENTERPRISE RESOURCE PLANNING (ERP) IMPLEMENTATION ON PERFORMANCE OF AN EDUCATION ENTERPRISE: A STRUCTURAL EQUATION MODELING (SEM)

This study focused on to examine whether the implementation of Enterprise Resource Planning (ERP) in a Peruvian education enterprise impacts on process management of enterprise which in turn enhance the performance of employees. Also, it is analyzed the impact of technology literacy on process management. Empirical data were collected using a survey questionnaire which was distributed to 142 ERP users in a Peruvian education enterprise to test the relationships among variables. Using Partial Least Squares Structural Equation Modeling (PLS-SEM) was analyzed the validity of construct and discriminant and, internal consistency by the composite reliability. ERP implementation has a positive impact in the performance of employees. The process management had a mediation effect between ERP implementation and performance. Also, technology literacy had an impact on performance. Outcomes provide further support for the validity of the model in Peru and globally. Thus, business owner/managers can use the model to help improve their options of success. Other stakeholders, investors and institutions that provide them with investment can also benefit from this model. The information also provides information to ERP implementation agents to support small business development. This is the first study reports the mediating effect of business strategy and organizational capabilities on the relationship between ERP implementation and firm performance. The outcomes of this study can be used to evaluate success of the ERP implementation evaluating preliminary the basic level of technology literacy.