Enterprise Resource Planning Systems, Intellectual Capital, and Business Performance: A Study of Listed Companies in Sri Lanka

Abstract

With the proliferation of technology, the success of modern firms highly depends upon the new technologies that facilitate new commercial opportunities and improve business processes. Therefore, it is vital to investigate how Enterprise Resource Planning (ERP) systems improve business performances and the relationship between ERP systems with the firm's intellectual capital and business performance. The primary aim of this paper is to explore the relationship between ERP systems, intellectual capital, and business performance. The study was conducted in the form of a survey, with data being gathered via a standard questionnaire. According to the market capitalization of Colombo Stock Exchange (CSE), the companies in the top five sectors were selected as the sample. Data were analyzed by using the SPSS statistical software. A descriptive analysis was performed to describe demographical variables, followed by finding correlation coefficients to assess the relationship between each of the three variables of the research to support the developed hypotheses of the study. The results revealed that ERP systems have a positive relationship with components of intellectual capital and business performance. The findings of this study provide valuable insights for business institutions to decide the implementation of ERP systems and which component of intellectual capital has a significant impact on improving business performance. Since this provides valuable findings, more research on this area needs to be encouraged.