Enterprise Resource Planning Adoption and Organizational Performance: An Investigated Study in Libyan Public Organizations Using Structural Equation Modeling

Abstract

Organizational performance (OP) and the enterprise resource planning system (ERP) are two of the most significant studies that provide benefits to organiza-tions. Different investigations into ERP and OP exist in private and public or-ganizations in developed and developing countries. Notably, as only a few studies have addressed the implication of ERP on OP in Arab countries, such as in the Libyan context, it needs more investigation. The main objective of this study is to explore to what extent Libyan public organizations are looking to improve their performance through adopting ERP systems. The quantitative method was adopted, and out of 242 public organizations, 149 organizations were selected as the study sample through the random sampling technique. 119 completed questionnaires were run for further analysis. The SPSS software and PLS-SEM were employed to test the hypotheses. The results revealed that the ERP system and OP relationship was enormously significant. The empirical results add a new academic contribution to the body of knowledge. Hence, the obtained outcome is hoped to provide benefits to the public sector organiza-tions in Libya.