Enterprise Resource Planning Systems and Firm Performance: Examining Mediating and Moderating Effects

Abstract

This study examines the impact of Enterprise Resource Planning (ERP) systems on firm performance in Vietnam’s Hotel, Restaurant, and Entertainment sector, with a particular focus on the moderating role of perceived environmental uncertainty (PEU). Utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) on primary data, the findings reveal that ERP systems significantly improve firm performance through the enhancement of management accounting practices (MAPs). Improved MAPs enable more informed decision-making, efficient resource allocation, and greater operational effectiveness, thereby boosting overall firm performance. Furthermore, PEU moderates the relationship between MAPs and performance, with a more pronounced effect observed in highly uncertain environments. This research contributes to the existing body of knowledge by integrating the Resource-Based View, Contingency Theory, and Technology Diffusion frameworks, addressing a notable gap in ERP literature. The findings provide practical implications for organizations, underscoring the importance of aligning ERP implementation with strategic goals to enhance adaptability in uncertain markets and strengthen overall firm performance.