Relationship Between the Innovative Organizational Culture and Firm Performance “Mediating Role of Degree of Implementation of Enterprise Resource Planning (ERP) and Benefits of Enterprise Resource Planning
Author: Yumna Ashraf

Due to the spacious competition, and proliferation of globalization, it is very difficult for firms to strive, stay, and generate satisfactory returns to shareholders. The huge progression in the advancement of technology, enforces a firm to become nimbler and innovatively retort towards the continuous change to meet customers’ expectations, and also conquer the competitive edge in the market in at least possible resources. Therefore, globally all firms emanate in the market with the same goals, and objectives to improve firm performance; that is financial and operational performance. To triumph the goals, several available information technology tools, and techniques are used to make the process more efficient to overcome the firm’s challenges. Therefore, this study is focused on the technological innovation, to implement the higher degree of implementation of enterprise resource planning to access on the huge data sets and become digitalized firms due to the presence of electronic platforms and higher IT penetration in the business. ERP’s provides the extensive approachability of data, and upgraded information. It enables firms to competently interpret the vigorous dynamic environment to make efficient decisions. Therefore, this study proposes a model to examine the processes through which Innovative Organizational Culture (IOC) effects the Firm Performance (FP), and it also dig downs the outcomes of IOC, and understand the paths that explain this process. However, IOC is one of the drivers for better firm performance. It encourages the innovations and technology, and a higher degree of implementation of enterprise resource planning (DIERP). Efficaciously implemented the ERP system, leads to the higher benefits of enterprise resource planning (BERP). The research model is erected on the Resource-Based View (RBV). Purposive sampling technique is used to select sample. Primary data is collected from 234 higher to medium level managers from manufacturing and services firms using ERP’s package in their operations. The study uses Partial Least Squares Structural Equation (SMART PLS 3) to test the hypothesis. Results reveals that a higher DIERP mediates the relationship between the IOC and the BERP. Similarly, the BERP mediates the relationship between the DIERP, and FP. The current study provides the insights to the managers to emphasize on the mechanism to encourage, and foster the IOC, for higher DIERP, and to sustain proper management system towards acquiesces of change to enhance FP. Supervisor:- Dr. Hassan Rasool

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Supervisor: Hassan Rasool

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