The Influence of Technology-Organization-Environment on Firm Performance by ERP Assimilation

Abstract

This study aimed to investigate the influence of mediator variables of ERP assimilation between latent variables, in technological, organizational and environmental contexts, and firm performance. Data were collected from a questionnaire within the manufacturing industry in Thailand, and registered with the Department of Business Development of the Ministry of Commerce. The sample group consisted of 285 companies, and the data were analyzed with a structural equation modelling technique. The results showed that the three factors of TOE, which were technological, organizational, and environmental, influenced firm performance through ERP assimilation. It was found that the organizational context had the most influence on firm performance. The findings indicated the importance of understanding technological, organizational, and environmental contexts influenced ERP assimilation to improve the efficiency of the organization. The results helped executives of the manufacturing industry in Thailand understand the meaning of the ERP system, and improve performance and competitive advantages.