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Influence of an ERP system on the value chain process of multinational enterprises (mnes)

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par Bosombo Folo Ralph
University of Johannesburg - Master in business administration (MBA) 2007
  

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1.4 Research hypotheses

The research hypotheses will be thoroughly scrutinised in a subsequent chapter. They pertain to whether or not the system addressed is technically compatible with MNEs with a competitiveness impact. The research hypotheses formulated in this study are:

H 1 The value chain integration through ERP software helps MNEs to operate efficiently due to

the software's multifunctional, integrated and modular characteristics, which meet the general model of an ERP system as a value chain system.

H 2 The use of strategic IT plan theory in ERP evaluation determines MNE competitiveness

impact and IS usage.

H 3 Users, managers and CEOs/CIOs are positive about ERP system matters relating to strategic

management and the value chain concept.

H 4 Axapta Microsoft software architecture, through a strategy techniques planning model such

as the value chain, is a strategic IT tool and an ERP system designed for MNEs.

H 5 ERP software meets the basic requirements of the value chain concept and architecture, and is a value chain system with the IT mechanism facilitating integration, relationship and coordination of all activities within the MNE's value chain.

H 6 The relationship between an ERP system and e-business benefits the supply chain for the

company's expansion.

The report of this study will therefore be based on the analysis of Axapta, as an IT tool designed for an MNE, which requires the ability to integrate business information within the multisites' value chains, manage resources and accommodate diverse business practices and processes across the entire MNE.

1.5 Research design

The research design is a plan or blueprint of how the researcher intends conducting the research (Mouton, 2001:55). A descriptive study is a type of conclusive research that has as its major objective the collection of data that could be used to describe something and is often marked by the formulation of specific hypotheses prior to the research being conducted (Malhotra, 1996:89).

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According to Leedy (1997:111), the most widely used technique for gathering data in business and sociology is a descriptive survey. It is used to describe the incidence, frequency and distribution of specific characteristics of a population. The concerns in the design of a survey are with respect to errors of estimation, including measurement errors, frames errors, non-response errors, selection errors and sampling errors.

Data collection tools for descriptive surveys include interviews and questionnaires. For this study, a questionnaire was used, based on the exploratory and descriptive question format. The details on the research design are discussed under the research methodology section (in chapter 5). The analysis of this study comprises mainly a literature review of the various technical and strategic planning models to evaluate IT and a discussion of the technical side of the different value chains' architecture on which most ERP systems are built and based. The literature review of the ERP concept is analysed under the value chain concept theory, and compared with the attributes and specifications of Axapta under the case study section of this study (in chapter 4). In chapter 5, the methodology and the design for this study are highlighted. The comparison of the literature review on the different aspects of Axapta is highlighted in chapter 6 in order to determine the qualitative outcome of this study. This will reveal whether the system addressed has adhered to the principles of the value chain concept with a competitiveness impact within an MNE. The quantitative outcome established through the self-administered questionnaire survey will also be highlighted. This is followed by conclusions and recommendations.

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