The effects of ERP systems implementation on management accounting in Iranian organizations

2014 ◽  
Vol 7 (4) ◽  
pp. 245-256 ◽  
Author(s):  
Solmaz Abbasi ◽  
Mahmoud Zamani ◽  
Changiz Valmohammadi
Keyword(s):  
Enterprise Resource Planning ◽  
Data Transfer ◽  
Management Accounting ◽  
Resource Planning ◽  
Erp Systems ◽  
Time Data ◽  
Statistical Population ◽  
Content Type ◽  
Erp System

Purpose – The aim of this paper is to study the effects of enterprise resource planning (ERP) on management accounting in Iranian organizations. Preparing and offering different reports and budgets remain important activities for accountants, and directly implementing ERP systems improves the quality of these reports through real-time data transfer. Design/methodology/approach – The research methods used in this paper are descriptive surveys with questionnaires and interviews as the main data collection tools. Statistical population comprises every organization which has implemented an ERP system with financial/accounting modules. The participating 12 organizations were selected based on consultation with experts, and a seven-item Likert questionnaire was prepared and its validity approved and used to collect data. The t-test and Friedman test were applied to assess the hypotheses and rank parameters. Findings – Results revealed that the highest effects of implementing an ERP in surveyed Iranian organizations are improving standard levels and the quality of reports, creating more organizational integration and empowering personnel. Research limitations/implications – As the implementation of ERP in Iran is still in its initial phases and the sample is restricted to only four organizations, when considering the generalizability of the obtained results, caution should be taken. Originality/value – This research is among the few studies on the effects of ERP implementation on accounting management departments, particularly in the context of Iran.

ERP systems and management accounting

2018 ◽  
Vol 14 (2) ◽  
pp. 120-137 ◽  
Author(s):  
Gary Spraakman ◽  
Winnie O’Grady ◽  
Davood Askarany ◽  
Chris Akroyd
Keyword(s):  
Enterprise Resource Planning ◽  
Management Accounting ◽  
Resource Planning ◽  
Small Samples ◽  
Research Projects ◽  
Erp Systems ◽  
Content Type ◽  
Erp System ◽  
New Information ◽  
The Impact

Purpose This paper aims to show how our understanding of the effects of enterprise resource planning (ERP) systems on management accounting are influenced through “nudging” by researchers in their preamble before interviews begin. Design/methodology/approach There were two groups of comparable respondents. Each group received a different preamble to the same questions. The differences in group responses were analyzed. Findings When the impact of ERP implementation on the physical, transactional and information flows within the firm were nudged, the responses focused on how the chart of accounts had to be expanded to account for the additional data introduced by transaction processing. When the IT and ERP system knowledge and skills were nudged, the responses tended to emphasize analyses or the use of new information through the use of drill down functionality. This research provides new insights and contributions to understanding how nudging affects or directs respondent assessments of the impact of ERP systems on management accounting. Research limitations/implications The research is limited by the relatively small samples and by the fact that these were different research projects. Practical implications Nudging has an obvious impact on research that should not be ignored. Social implications Unintentional nudging should be considered with all research projects. Originality/value This paper makes explicit that nudging occurs in research whether intentional or unintentional.

Assessing the impact of enterprise resource planning on decision-making quality

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Ouiddad ◽  
Chafik Okar ◽  
Razane Chroqui ◽  
Imane Beqqali Hassani
Keyword(s):  
Decision Making ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Equation Modeling ◽  
System Quality ◽  
Erp Systems ◽  
Content Type ◽  
Erp System ◽  
The Impact

Purpose An enterprise resource planning (ERP) system is commonly used for automating operational processes and enhancing their efficiency inside a company. In the recent years, the increasing development of ERP technologies has increased their impacts on decision-making. Such impact can no longer be underestimated. The purpose of this study was to evaluate the impacts of ERP systems on the improvement of decision-making quality inside large Moroccan companies. Design/methodology/approach Based on the DeLone and McLean information systems success model and by adopting a quantitative approach, survey data were collected through questionnaires. The established questionnaires were distributed to 104 decision-makers who use ERP systems. To test the developed research model, structural equation modeling based on the partial least squares method was used. Findings The findings of the present investigation showed that information and system quality had a positive impact on the overall user’s experience with the ERP system, whereas service quality had a negative impact on it. This influenced the quality of decision-making. The results also showed that the model used has sufficient and adequate convergent and discriminant validities, as well as sufficient reliability. Originality/value To the best of authors’ knowledge, this is the first empirical study that evaluates the effect of ERP systems on improving the quality of decision-making in Morocco. The results provide interesting theoretical and managerial implications.

An integrated framework for ERP system implementation

2017 ◽  
Vol 25 (1) ◽  
pp. 91-109 ◽  
Author(s):  
Kalinga Jagoda ◽  
Premaratne Samaranayake
Keyword(s):  
Enterprise Resource Planning ◽  
Critical Success Factors ◽  
Success Factors ◽  
Resource Planning ◽  
System Implementation ◽  
Erp Systems ◽  
Erp Implementation ◽  
Content Type ◽  
Erp System ◽  
Critical Success

Purpose The purpose of this paper is to propose an alternative integrated approach based on the stage-gate method to implement enterprise resource planning (ERP) systems which will enhance the effectiveness of ERP projects. Design/methodology/approach A literature review was conducted on ERP system implementation and its effectiveness. The need for improving implementation approaches and methodologies was examined. Based on the insights gained, a conceptual framework for ERP system implementation is presented by combining the state-gate approach with the pre-implementation roadmap. Findings The proposed framework aims to enhance the overall ERP implementation outcomes, ensuring critical success factors and eliminating common causes of failures. A pre-implementation roadmap is identified as a key element for eliminating many causes of failure including lack of organisations’ readiness for ERP. The post-implementation stage can be used for further improvements to the system through internal research and development. Research limitations/implications The development of the framework is an attempt to contribute to improving ERP implementation. This research is expected to motivate researchers to work in this area, and it will be beneficial to practicing managers in the identification of opportunities for improvements in ERP systems. Case studies will be valuable to refine and validate the proposed model. Originality/value This paper explores research in a needy area and offers a framework to help researchers and practitioners in improving ERP implementation. This framework is expected to reduce the implementation project duration, strengthen critical success factors and minimise common problems of ERP implementation projects.

Extending the ERP system: considering the business relationship portfolio

2014 ◽  
Vol 20 (3) ◽  
pp. 480-501 ◽  
Author(s):  
Peter Ekman ◽  
Peter Thilenius ◽  
Torbjörn Windahl
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Corporate Management ◽  
Illustrative Case ◽  
Full Potential ◽  
Business Relationships ◽  
Business Relationship ◽  
Erp Systems ◽  
Content Type ◽  
Erp System

Purpose – Research has shown that companies focus their internal processes when they adopt enterprise resource planning (ERP) systems. However, the ERP systems need to expand their functionality to include customers and suppliers (with e-commerce functionality) to reach their full potential. The purpose of this paper is to consider business relationships as a resource but also a limitation when companies strive to get an extended ERP system. Design/methodology/approach – The paper presents an illustrative case study of an industrial company's process of developing an extended ERP and how the company's portfolio of business relationships has affected the solution. The analysis is supported by the markets-as-networks theory. Findings – The process of developing an extended ERP system needs to incorporate the company's business partners (customers and suppliers). It is a simultaneously bottom-up and top-down process given that the operative frontline staff hold the knowledge about the company's business relationships while the corporate management has the means of extending the ERP system functionality and align it with the focal company's strategy. Research limitations/implications – Companies need to consider the fact that the technological and financial status of their customers and suppliers differ. Thus, an effective and flexible extended ERP system needs to include both a high-end and low-end solution as well as understand that a full interorganizational integration might not be realistic. Originality/value – The paper puts forth business relationship portfolios as an important factor to consider when extending the ERP system functionality in the supply chain and toward customers.

scholarly journals Measuring enterprise resource planning (ERP) systems success from a managerial accounting perspective

2021 ◽  
Vol 19 (1, special issue) ◽  
pp. 218-228
Author(s):  
Patrick Ulrich ◽  
Hasan Andac Güler
Keyword(s):  
Organizational Performance ◽  
Enterprise Resource Planning ◽  
Management Accounting ◽  
Resource Planning ◽  
Research Field ◽  
Managerial Accounting ◽  
Erp Systems ◽  
Major Objective ◽  
Erp System ◽  
Degree Of Satisfaction

A major objective of management accounting is to support managers in decision-making by providing decision-relevant interdepartmental information. Hence, enterprise resource planning (ERP) systems are important for the application of management accounting techniques as they streamline the necessary information. Besides the fact that ERP systems are important, there was little research conducted which is directly concerned with concrete benefits that arise with the use of ERP systems within management accounting. This study with 94 participants contributes to this research field by examining benefits that arise with the use of ERP systems within management accounting and the characteristics that are crucial for achieving those benefits. As there was a recent wave of new ERP systems (i.e., SAP S/4HANA®), the results were clustered into organizations that are using traditional and modern ERP system where appropriate (i.e., response time). The outcomes indicate that using ERP systems within management accounting offers benefits that are positively interrelated with the extent and the satisfaction of using this information to make decisions. As a higher extent of using this information and a higher degree of satisfaction with this information is positively interrelated with organizational performance, we show that using ERP systems within management accounting helps improve organizational performance

The influence of ERP systems on organizational aspects of accounting: case studies in Portuguese companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José Luís Martins ◽  
Carlos Santos
Keyword(s):  
Organizational Structure ◽  
Enterprise Resource Planning ◽  
Qualitative Methodology ◽  
Resource Planning ◽  
Successful Implementation ◽  
Erp Systems ◽  
Structured Interviews ◽  
Content Type ◽  
Erp System ◽  
Different Levels

Purpose This paper aims to investigate the changes caused by the use of the enterprise resource planning (ERP) systems in the accounting of organizations at different levels: organizational structure; processes; and employees. Design/methodology/approach The authors use a qualitative methodology with interpretative analysis through the study of five cases in Portuguese companies that implemented the Sage ERP X3. The data collection was carried out mainly through semi-structured interviews. Findings The results indicate that the successful implementation of the ERP system is associated with changes in the organizational structure, reengineering of processes and changes in the functions of employees. These changes interact and cause modifications among themselves, which makes it difficult to identify the origin and sequence of changes related to the implementation of the systems. It was possible to identify the direct impact of the ERP system on the change of processes, which is reflected in the functions of the employees, as well as to verify that the ERP system provides the opportunity for companies to change their organizational structure. Originality/value This paper contributes to the accounting literature by providing evidence on the influence of ERP systems on organizational aspects of accounting in the Portuguese reality, attesting that the successful implementation of the ERP system is associated with changes in the organizational structure, reengineering of processes and changes in the functions of employees.

Implementing ERP in an emerging nation

2017 ◽  
Vol 25 (1) ◽  
pp. 37-40
Keyword(s):  
Enterprise Resource Planning ◽  
Design Methodology ◽  
Resource Planning ◽  
Erp Systems ◽  
Content Type ◽  
Erp System ◽  
Organizational Functions ◽  
The World ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The use of enterprise resource planning (ERP) systems has escalated over recent years. Implementing such systems helps companies to raise performance levels in line with other organizations around the world. A capacity to initiate change is one of the most significant features of an ERP system. It can, for instance, transform how different organizational functions connect. Existing practices are likewise subject to change. Scope also exists for ERP to significantly impact on the prevailing structure and culture of the company. Employees are not immune from its effects. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

E-government system evaluation

2017 ◽  
Vol 11 (3) ◽  
pp. 306-342 ◽  
Author(s):  
Mona Althonayan ◽  
Abraham Althonayan
Keyword(s):  
Service Quality ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Data Availability ◽  
System Quality ◽  
Erp Systems ◽  
Quality Factors ◽  
Content Type ◽  
Erp System ◽  
The Impact

Purpose Enterprise resource planning (ERP) systems are complex and comprehensive software designed to integrate business processes and functions. Despite the difficulties and risk, the adoption of ERP systems is expanding rapidly. Universities make large investments in information systems and expect positive impacts. However, universities are facing serious challenges in implementing new technology. Therefore, this research aims to evaluate the impact of ERP systems on higher education (HE) from the perspective of stakeholders’ performance. Design/methodology/approach This research paper conducted a case study of an ERP system in a Saudi university to explore the impact of ERP system on the performance of the system’s stakeholders among the university’s employees. Findings The system quality factors (flexibility, compatibility, availability of right data, availability of currency, ease of use and timeliness) were found to affect performance positively, as were service quality factors (tangibility, reliability, responsiveness and assurance). This research further found that factors from pre-implementation, implementation and post-implementation phases had a direct effect on stakeholders’ performance. Research limitations/implications Future research would be useful during the maturity phase to include all stakeholders in several Saudi universities. In addition, more research can be beneficial to test the applicability of the impact of the ERP system on stakeholders’ performance in other public sector organisations and in the private sector. Practical implications The results suggest that organisations in general and HE institutions in particular should focus on the early stages and the implementation phase if they wish to achieve high standards of stakeholder performance. Originality/value This research makes a novel contribution by attempting to evaluate the impact of service quality on stakeholder performance in the ERP environment. The contribution uses service quality as a dimension consisting of four factors – reliability, assurance, tangibility and responsiveness. All four factors were found to be significant on ERP stakeholders’ performance.

Accounting logics as a challenge for ERP system implementation: a field study of SAP

2017 ◽  
Vol 13 (2) ◽  
pp. 162-187 ◽  
Author(s):  
Rafael Heinzelmann
Keyword(s):  
Enterprise Resource Planning ◽  
Organizational Context ◽  
Extreme Case ◽  
Resource Planning ◽  
Primary Data ◽  
Erp Systems ◽  
Validity And Reliability ◽  
Accounting Systems ◽  
Content Type ◽  
Erp System

Purpose This paper aims to investigate the accounting logic inscribed in the SAP enterprise resource planning (ERP) system and how this accounting logic becomes effective in organizations. The authors draw on the notion of accounting logics by mobilizing the institutional logics literature (Thornton et al., 2012). Accordingly, accounting logics are conceptualized as crucial underlying design principles consisting of a system of beliefs, assumptions and ideas how accounting systems should be designed. Design/methodology/approach The authors adopt a qualitative case study approach conducted in a manufacturing company, hereafter called Wood Plc. The primary data source is qualitative research interviews. Secondary data, such as internal documents, were collected to increase validity and reliability through data triangulation (Ahrens and Chapman, 2006; Scapens, 2004). Findings The paper demonstrates how a particular accounting logic – the Germanic accounting logic – gets diffused throughout the organization by the means of the SAP ERP system, and creates challenges for management accounting practices in local entities. The contribution of the paper is to show that ERP systems can foster the diffusion of a specific accounting logic, which is inherently linked to the SAP system, and which enables a specific version of accounting to work in an organization. Research limitations/implications This paper could be viewed as an extreme case of a German organization using the SAP ERP system with its Germanic accounting logic inscribed to make a German accounting logic work in the entire organization. Consequently, further research could unpack the relationship between accounting logics, ERP systems, accounting systems and their use by studying not only different empirical settings with respect to the organizational context but also the ERP software used by organizations. Practical implications This paper aims to raise the awareness of practitioners of the conceptual underpinnings inscribed in the SAP accounting modules while at the same time pinpointing the potential challenges of implementation generated by the accounting logics. Originality/value The paper complements existing studies on accounting and ERP systems by bringing the accounting logic inscribed in the SAP ERP system to the fore. More precisely, this paper shows that in the wake of SAP ERP implementation, the organization studied spread its assumptions and beliefs on accounting, which are manifested in the Germanic accounting logic inscribed in the SAP ERP system, in the organization. This invoked particular challenges in non-Germanic subsidiaries in making accounting work.

Enterprise Resource Planning Systems and XBRL Reporting Quality

2021 ◽  
Author(s):  
Feng Guo ◽  
Xin Luo ◽  
Patrick Wheeler ◽  
Liu Yang ◽  
Xinlei Zhao ◽  
...  
Keyword(s):  
Enterprise Resource Planning ◽  
Reporting Quality ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp Implementation ◽  
Erp System ◽  
Enterprise Resource Planning Systems ◽  
Negative Effect ◽  
Reporting Environment

Enterprise resource planning (ERP) systems are indispensable for a majority of larger and midsize firms, and have changed the way accounting information is collected, stored, processed, and disseminated. Although most ERP systems integrate an eXtensible Business Reporting Language (XBRL) component in their core modules, little research has examined how ERP systems affect the quality of XBRL filings. Using unique data from branch-level ERP implementation, we find that the degree of ERP adoption among a firm’s branches is negatively associated with the firm’s XBRL filing errors and positively associated with XBRL reporting comparability, which in turn facilitates external users’ access to the firm’s XBRL filings in the SEC’s EDGAR. These results suggest that ERP systems improve XBRL reporting quality.  Moreover, our results indicate that ERP can mitigate the negative effect of extension taxonomies on XBRL reporting quality, which highlights the importance of the ERP system in a complicated XBRL reporting environment.

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