Impacts of ERP systems on the integrated‐interaction performance of manufacturing and marketing
| Pages | 42-55 |
| Published date | 01 January 2004 |
| DOI | https://doi.org/10.1108/02635570410514089 |
| Date | 01 January 2004 |
| Author | Li‐Ling Hsu,Minder Chen |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Impacts of ERP
systems on the
integrated-interaction
performance of
manufacturing and
marketing
Li-Ling Hsu and
Minder Chen
Introduction
The Internet economy is a customer-oriented
marketplace. Consumers are increasingly
engaged in an active and explicit dialogue with
companies, their marketing departments or
even their manufacturing departments. The
eFoundry system from TSMC is an example of
such close collaboration (TSMC, 2002). The
role of the consumer is being transformed from
passive buyer to active participant in creating
added values. The ability to provide flexible
manufacturing capability to enable mass
customization while still being able to reduce
costs and improve quality is a critical element
for many manufacturing firms to compete in the
marketplace (Armacost et al., 1994; Murakoshi,
1994; Whybark, 1994; Parente, 1996; Hsu,
2000).
To respond quickly to customer demands
and market changes requires better integration
of internal functions and processes. In the early
1990s, business process reengineering was the
approach taken by many enterprises to achieve
dramatic performance improvement, often
through process integration and applications of
some enabling information technology (Chen,
1999). Many BPR projects have encountered
an insurmountable difficulty in bringing down
the stovepipe-like business processes and the
associated legacy systems often referred to as
``islands of automation''. ERP systems
emerging in the mid-1990s were becoming a
possible solution to integrate physical
production systems with business processes via
an integration information system. ERP
systems often consist of many modules that
support business functions such as
manufacturing, inventory management,
marketing, order processing, etc. These
modules are integrated via a common data
model and database system which indirectly
supports the interactions among various
business functions. Whether implementing
ERP systems really facilitates better integration
among business functions and improves the
integrated-interaction performance performed
jointly by these departments are not addressed
by existing research in ERP implementations.
This research is designed to address the
impacts of information technologies to the
integration business functions. Since the
The authors
Li-Ling Hsu is an Associate Professor at the National
Kaohsiung First University of Science and Technology,
Kaohsiung, Taiwan, ROC.
Minder Chen is an Associate Professor at the George
Mason University, Fairfax, Virginia, USA.
Keywords
Interface management, Resource sharing,
Manufacturing resource planning
Abstract
Interactions between manufacturing and marketing depart-
ments often determine the competitiveness and profitability
of a firm. Enterprise resource planning (ERP) systems
address integration issues of business functions; and
benefits contributed by ERP implementation found in the
literature are similar to those achieved through the
integration of manufacturing and marketing functions. Uses
a research model based on contingency theory and socio-
technical theory to study the effects of ERP implementation
on marketing and manufacturing integration. A study of four
companies in the electronic industry shows that internal
organizational and external factors affect the interaction
between manufacturing and marketing and results in
performance improvement. Provides a new perspective of
the factors that impact the effectiveness of ERP systems.
Electronic access
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42
Industrial Management & Data Systems
Volume 104 .Number 1 .2004 .pp. 42-55
#Emerald Group Publishing Limited .ISSN 0263-5577
DOI 10.1108/02635570410514089
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