Made in China: ERP Post-Implementation Performance in the Chinese Manufacturing Industry

To gain competitive advantages in the global market, many Chinese manufacturing firms have invested heavily in implementing Enterprise Resource Planning (ERP) systems. Evidence shows however that ERP post-implementation performance has varied significantly between firms. This paper aims to investigate such variances in performance in the Chinese manufacturing context, particularly at a plant level. A model developed by Gattiker and Goodhue (2005) has been adapted and extended for our investigation incorporating a survey instrument. Data were collected from 59 Chinese manufacturing firms. The data collected were analyzed using Structural Equation Modeling in association with Partial Least Squares technique. The results shows that the level of interdependence, differentiation between plants, time elapsed since the systems have gone live, high context communication in the Chinese culture, and personal relationship (Guanxi) have significance impact on ERP post-implementation performance.