Relationship Between Enterprise Resource Planning System and Organizational Productivity in Local Government

Organizations experience challenges despite efforts to increase productivity through implementing large-scale enterprise systems. Leaders of local government institutions do not understand how to achieve expected and desired benefits from the implementation of enterprise resource planning (ERP) systems. Lack of alignment between social and technical elements in ERP implementation depresses organizational productivity. The purpose of this quantitative correlational study was to examine whether social and technical elements increase use and productivity in ERP implementation. The research questions addressed the relationship between ERP and organizational efficiency, cross-functional communication, information sharing, ease of ERP use, and ERP usefulness. Sociotechnical systems theory provided the theoretical basis for the study. Data were collected from online surveys completed by 61 ERP users and analyzed using Wilcoxon matched pairs statistics and Spearman\u27s correlation coefficient. Findings indicated a positive significant relationship between ERP and information sharing, a positive significant relationship between ERP system quality and ease of ERP use, and a positive significant relationship between ERP system quality and organizational productivity. Findings may be used by local government leaders, technology managers, and chief information officers to ensure ERP sustainability and increase productivity