FLEXIBILITY AND STRATEGIC ALIGNMENT OF ENTERPRISE RESOURCE PLANNING SYSTEMS WITH BUSINESS STRATEGIES: AN EMPIRICAL STUDY

ii This thesis examines relationships between strategic alignment, performance, and strategic Enterprise Resource Planning (ERP) flexibility. We have used different strategy perspectives to form our strategic alignment construct and chosen several significant variables of these constructs based on the literature. The alignment measurement methods were moderation and profile deviation, and several financial values have been used to form the performance construct. Using empirical data, we have showed that enterprise systems ’ alignment with the business strategy can explain the change in their performance. Moreover, strategic flexibility of an enterprise system such as ERP has an additional positive effect on business performance, but it is mediated by the alignment of enterprise systems and business strategies. From a theoretical perspective, we have explained prior conflicting conceptualizations and empirical findings on strategic flexibility’s role by incorporating its indirect effects on business performance. In addition, we have offered a multi-dimensional measurement instrument for ERP alignment to practitioners specifically designed for the alignment of enterprise systems