Impact of enterprise resource planning on the improvement of employee productivity: a case study of ABC apparel company

Abstract

As businesses increasingly adopt Enterprise Resource Planning (ERP) solutions to streamline and incorporate operations, understanding the specific impacts on employee productivity becomes crucial for organizational success. The study conducted a comprehensive case study methodology using correlational research, which employed a deductive, quantitative approach to analyze the transformative influence of ERP solutions on employee productivity within the setting of the ABC Apparel Company. A total of 132 respondents were randomly selected using a finite random sampling method to provide a representative sample. The study revealed that ERP adoption has a significant positive correlation with improved employee productivity, particularly in terms of factors such as ERP systems compatibility, ERP systems complexity, ERP systems efficiency, ERP best practices, training ERP systems, and empowerment on the ERP. These factors contribute to a more efficient workflow, fostering a proactive and informed workforce. The study found that as businesses continue to adopt ERP solutions, it is crucial to understand the specific impacts on employee productivity. However, the study also highlighted the potential drawbacks associated with ERP adoption, such as the IT productivity paradox, which suggests that investing in technology may not necessarily lead to increased productivity. Therefore, organizations must carefully consider the potential pitfalls and take appropriate measures to mitigate them before implementing ERP systems. To enhance the study's credibility, future research may consider exploring the potential drawbacks of ERP adoption in more detail and investigating the long-term effects of ERP adoption on employee productivity. Additionally, including qualitative data could provide a more nuanced understanding of employees' experiences and perspectives in the ABC Apparel Company. The research adds to the current pool of knowledge by offering a detailed examination of direct and indirect effects of ERP on employee productivity, grounded in a real-world organizational setting. As businesses continue to navigate the dynamic landscape of digital transformation, the findings from this case study provide practical implications for optimizing ERP systems to maximize the positive impact on employee productivity.