The Moderating Effects of Managerial Competencies and Organization Capabilities on ERP Implementation by Service Sector Enterprises in Saudi Arabia

Researchers attempted in this study to examine the moderating effects of factors that proposed to impact the ERP implementation in the service companies. The moderating effects of Managerial Competencies (MC) and the dimensions of organization capabilities were examined on the existence of User Satisfaction (US) in the ERP successful implementation. The researchers adapted the quantitative approach in which a survey questionnaire was distributed to a target sample of 1000 contacts. The achievable sample was 408 with an approximate response rate of 41%, representing respondents of executives, managers, and end users. Data were analyzed using linear structural relations (LISRL) and SPSS techniques to test the obtained results. The results and findings show that innovation capabilities and skills competency have a moderate impact on the relationship between user satisfaction and ERP implementation. On the other side, networking capability, financial capability, and knowledge competency have no moderated impact on the relationship between user satisfaction and ERP successful implementation. The research results may lack generalizability since the results consider only the service enterprises. However, the research model can be replicated in other countries to support and further validated the developed research model. The researchers’ findings brought a reasonable implication by emphasizing the organization’s Innovative Capability (IC) more than other proposed factors. Therefore, IC must be considered by any enterprises seeking to shift their firm’s orientation toward being more entrepreneurial and achieve successful ERP implementation in Saudi Arabia services companies. This paper fulfills identified newly moderating factors that examine the successful implementation of ERP.