Impact of ERP Implementation on Employee Performance in Hospitality Sector: Role of Management Capabilities

Abstract

Most hotels either upgrade or implement ERP systems, with an intention to improve the organizational performance. In hospitality industry, guest satisfaction is linked with performance, where employee performance becomes a critical factor in deciding performance. Therefore, it is interesting to study the impact of the Enterprise Resource Planning (ERP) system implementation on employee performance in hospitality sector. The study investigates the influence of ERP system implementation on employee performance. Also, investigates whether management capabilities mediate the relationship between ERP system implementation and employee performance. The research was conducted based on deductive approach. Structured questionnaire was distributed among pre-selected hotels with ERP systems which were installed/upgraded within past two to three years. The finding of the study shows that there is a positive relationship towards employee performance through ERP system implementation. Further, management capabilities supportively mediate the positive relationship between ERP system implementation and employee performance. Findings will provide learnings to the hotels in the hospitality industry to enhance their performance to meet their increasing demand and agile customer preferences.