Business performance and enterprise resource planning

Business performance is affected by the quality management practices of the organization. Holistic programs, including the national quality award programs, six-sigma initiatives, and enterprise resource planning (ERP) applications may characterize the highest level of quality initiatives. Arguably, the most popular quality initiative is the ISO 9000 program. The effect of different levels of quality initiatives on business performance was studied in a stratified sample of 280 firms in the Canadian provinces of Ontario and Quebec. The effect of using these quality initiatives in combination with ISO 9000 was also studied. Finally, the relationship between a firm’s use of enterprise resource applications and performance excellence was examined. The study revealed that, regarding quality initiatives, ISO 9000 certification was deemed positively beneficial only when combined with quality initiatives of the highest level. Further, there is a moderately significant relationship between ERP applications and performance excellence.