University of Baghdad , Baghdad , Iraq
The study explores how Enterprise Resource Planning (ERP) systems can enhance value chain performance in the dairy manufacturing sector. The paper aims to evaluate the role of ERP-based enhancements in integrating processes, improving efficiency, and coordinating resources to create value along the value chain. The study uses an analytical research design and secondary financial and operational data obtained by extracting dairy industry reports for the 2012-2020 period. Statistical methods, such as correlation analysis and significance testing, were used to assess the effect of the ERP implementation on key performance indicators related to value chain activities. The results show that the working capital ratio has a negative growth rate of -0.9 percent, indicating short-term financial instability for the reviewed dairy companies. Also, the value-added ratio declined by 1.5 percent over the period of study, indicating reduced productivity and cost-to-output efficiency. Despite these decreases, ERP systems showed a statistically significant positive effect on value chain performance at the 0.01 significance level. Findings also indicate a positive relationship between ERP adoption and value chain effectiveness at the 0.01 level, suggesting that resource planning directly increases value chain coordination. In particular, the more the ERP integration, the greater the probability of creating a more effective and responsive value chain, by 0.018 percent. In general, the research concludes that, even amid the introduction of more comprehensive financial performance measures, ERP systems are essential for enhancing strategic alignment, operational consistency, and positioning in the dairy industry.
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