Exploring the Effects of an Enterprise Resource Planning System on an Organisation’s International Sourcing Efforts
Abstract
In a competitive global market, organisations leverage Enterprise Resource Planning (ERP) systems to integrate operations and optimise international sourcing efforts because of the business operational packages that integrate all organisational activities. However, some organisations have not employed the use of ERP systems, therefore finding it difficult to globally expand and coordinate their business operations. This case study aimed to establish the effects of an ERP system on an organisation’s international sourcing within Healthy Learners (HL), Zambia, a scaling non-governmental organisation (NGO). It was used to explore the effects, the correlation and the overall influence of an ERP system on an organisation’s international sourcing. The study adopted a pragmatist philosophy using a mixed-methods research design. Using Yamane’s formula, the quantitative study sample of 50 participants was determined to participate in providing data through a structured questionnaire from a total population of 115 and the qualitative study sample of 10 was selected to participate in the semi-structured interviews using purposive sampling. Quantitative data were analysed using SPSS, while qualitative data underwent thematic analysis. Statistical analysis established that Logistics, Finance/Accounting, and Supply Chain Management are the key drivers of international sourcing efficiency. Whereas Customer Relationship and Human Resource Management contributed to a lesser degree. An R-value of 0.781 indicates a substantial correlation, and an R-Squared value of 0.609 demonstrates that these five predictors explain 60.9% of the variance in international sourcing efforts. Lastly, the study concludes that an ERP system comprehensively influences international sourcing by directly enhancing operational efficiency, risk management, financial oversight, communication and regulatory compliance. For growth-stage NGOs, integrating these ERP modules is a strategic necessity for effectively managing international markets.