An Empirical Study on the Correlation between ERP Knowledge Management Implementation and Enterprise Operating Performance in Taiwan’s Industries

Hi-tech industry plays a vital role in the Taiwanese economy, with products characterized by short product life cycle, great investment amount, fast market changes, and high rate of product upgrade. Under global competitive pressure, the hitech industry has adopted information technology to shorten the process, reduce costs, increase flexibility, improve product or service quality, and thus enhance the enterprise’s core capabilities to achieve perpetual growth. To reach these goals, enterprises are highly motivated to actively strengthen internal and external enterprise resource integration, introduce enterprise resource planning (ERP) and knowledge management (KM), and improve enterprise operating performance. Literature research shows that most researchers and scholars have focused only on ERP systems development and process improvement. Few studies have involved integrating the knowledge management concept to ERP systems and developing ERP knowledge management. This research studies ERP knowledge management, collects, summarizes, and discusses literature related to ERP, knowledge management, ERP knowledge management, the balanced scorecard (BSC), enterprise operating performance, and hi-tech industry, and measures the effects of ERP knowledge management implementation based on survey results using four BSC dimensions; finance, customer, internal business process, and learning and growth. The research results provide standards for enterprises that have introduced ERP knowledge management to measure enterprise operating performance, and a reference for industries developing ERP knowledge management.