scholarly journals Measuring The Impact Of Enterprise Resource Planning (ERP) Systems On Shareholder Value

Author(s):  
John J. Morris

Author(s):  
Jonas Hedman ◽  
Andreas Borell

Enterprise resource planning (ERP) systems have an organizational impact and are in most cases implemented to improve organizational effectiveness. Shortcomings in current research make it difficult to conclude how an organization may be affected. This paper presents an artifact evaluation of the functionality and perceived benefits of ERP systems. The evaluation is based on the competing values model. The evaluation shows that ERP systems support effectiveness criteria (such as control and productivity) related to internal process and rational goal models. The evaluation also points out weaknesses in ERP systems and especially in areas related to human relations and open systems models. The result of the evaluation is used to discuss the impact of ERP systems on organizations and is presented as a series of hypotheses.


2021 ◽  
Vol 16 (2) ◽  
pp. 122-134
Author(s):  
Pavol Zahoran ◽  
Ondrej Zizlavsky

Automation, robotics, Internet of Things and Big Data are currently a big challenge for businesses. However, they can also be a great opportunity. One of the corporate areas where new technologies can be used is controlling. In this research, the issue is narrowed down to the impact of new technologies on Enterprise Resource Planning (ERP) systems of companies, which are a basic tool of controlling in companies. The research analyses the possibilities of integrating elements of Industry 4.0 with ERP systems and the possibility of using data for corporate controlling. For this purpose, a literature review was carried out and gained results were further analysed according to the defined criteria. The outcome of the literature review is an essential current state analysis of the impact of new technologies on corporate ERP systems with regard to the company's controlling processes. This paper serves as a very first step in designing a systematic research study in area of controlling 4.0. Keywords: automation, controlling, Enterprise Resource Planning (ERP), Industry 4.0, management control, management accounting


2020 ◽  
Vol 10 (3) ◽  
Author(s):  
Phan Thi Bao Quyen ◽  
Nguyen Phong Nguyen

In the past decades, enterprise resource planning (ERP) systems have becomeincreasingly automated, particularly for routine management accounting tasks. However, therehas been little research investigating the accounting benefits of adopting ERP systems. Thisstudy investigates the role of perceived accounting benefits in ERP success. Drawing on Juran’sprinciple of ‘fitness for use,’ this study establishes a framework that captures how perceivedaccounting benefits influence effective system use, which, in turn, enhances enterprise success.Using Partial Least Squares – Structural Equation Modelling (PLS-SEM) with survey datacollected from 120 enterprises in Vietnam that have implemented ERP, our findings providestrong support for the predicted positive effect of perceived accounting benefits on enterprisesuccess, and for the hypothesis that this relationship is fully mediated by effective system use.This study is novel for two reasons. First, it is one of the first attempts to provide empiricalevidence that effective system use and enterprise success are valuable outcomes of accountingbenefits perceived to be gained from the use of ERP systems. Second, it discovers anddemonstrates that effective system use is the most appropriate system-use concept in thepresent enterprise systems-related context, a topic that remains under discussion in theliterature.


2012 ◽  
Vol 1 (1) ◽  
pp. 68-72
Author(s):  
Muthuvelayutham C ◽  
Sugantha lakshm T

An Enterprise Resource Planning (ERP) system is composed of a basic transactional system and a management control system. Sammon et al. (2003) describesthese 2 components of ERP systems as the solution to “operational” integration problems and “informational” requirements of managers. Thus, the extreme standardisation of business process inherent in ERP systems creates huge volumes of data without providing a clue for how to exploit it and may therefore not beneficial from a decision-making point of view. In this paper, decision-making theory and models are reviewed, focusing on how an ERP implementation might impact on these constructs. This paper is an analysis about centralisation of decision making in an organisation and its impact on performance at a local level.


2020 ◽  
Vol 28 (2) ◽  
pp. 52-72
Author(s):  
Yuanyuan Guo ◽  
Chaoyou Wang

The aim of this study is to explore the impact mechanisms of psychological learning climate on employees' innovative use of information systems (IS). Using structural equation modeling, this study develops a theoretical model to investigate how the psychological learning climate affects innovative IS use by introducing individual motivational factors as mediators. The model is tested through a survey of 163 employees using enterprise resource planning (ERP) systems in China. The results suggest that psychological learning climate is positively related to innovative IS use both directly and indirectly. The indirect effect works through motivating employees' intrinsic motivation and creative self-efficiency. This study adds to the literature on IS use by identifying and examining the role of psychological learning climate as a driver of innovative IS use. The findings could provide managers with an understanding of how management can inspire employees' potential in IS innovation.


Author(s):  
Sara AlMuhayfith ◽  
Hani Shaiti

Small and medium enterprises (SMEs) have played an important role in economic development. The increasing number of SMEs have resulted in the business landscape to become more and more competitive. This has made SMEs to also undergo great challenges to be able to maintain their existence and expand their businesses. It is argued that the enterprise resource planning system (ERPs) can improve business performance. Therefore, the primary purpose of this study is to examine the impact of an ERPs usage on the financial and non-financial performance of the Saudi SMEs. An exploratory study has been used to identify the factors contributing to the effective and successful use of an ERP system. The findings indicate seven contingency factors. Based on the exploratory study results, three hypotheses have been developed and tested in a quantitative study. A survey is constructed and sent to 200 Saudi SMEs that adopted the ERP systems. About 120 valid responses have been received. For data analysis and hypothesis testing, a structural equation modelling (SEM) tool has been adopted. The results depict that management support, user satisfaction, and training significantly impact the ERPs usage. Another significant finding is that ERP systems enhance SMEs’ performance.


2021 ◽  
Vol 17 (4) ◽  
pp. 69-84
Author(s):  
Godwin Banafo Akrong ◽  
Yunfei Shao ◽  
Ebenezer Owusu

Globally, governments are taking steps to help them increase their income generation margin by implementing tax administrative ERP systems. However, the impacts on the internal system users of these ERP system quality features have not drawn the attention needed. This study, therefore, examines the relationship between the information systems' (IS) quality and individual impact using the theoretical foundation of the DeLone and McLean IS success model and, secondly, addresses the interrelationships between the quality constructs of information systems (IS). The authors also used the structural equation modeling technique of partial least squares to evaluate and analyze the data. The results show that system quality, the information quality, and the service quality characteristics of the tax administrative ERP system have a strong positive impact on the success of the IS at the individual level. There is also a positive relationship between the information systems' (IS) quality construction. The results provide additional empirical observations and consequences for management.


2013 ◽  
Vol 10 (1) ◽  
pp. 63-88 ◽  
Author(s):  
Jongkyum Kim ◽  
Andreas I. Nicolaou ◽  
Miklos A. Vasarhelyi

ABSTRACT Prior research has shown that the implementation of ERP systems can significantly affect a firm's business operations and processes. However, scant research has been conducted on the relationship between ERP implementation and the timeliness of external audits, such as audit report lags. While some of the alleged benefits of ERP are closely related to removing impediments contributing to audit report lags, others argue that the complex mechanisms of ERP systems create greater complexity for control and audit. In this paper, we examine the relationship between ERP implementations and audit report lags. The test results indicate that overall, a firm's ERP implementation is negatively associated with audit report lag. However, this negative association is significant only at the fourth and fifth years after initial ERP implementation. These results imply that the use of ERP systems by client firms may help decrease the audit report lag, but it takes time for the full impact of the firms' accounting systems to be realized.


2017 ◽  
Vol 9 (3) ◽  
pp. 49 ◽  
Author(s):  
Eman Yassien ◽  
Raja'a Masa'deh ◽  
Monira Mufleh ◽  
Ala'aldin Alrowwad ◽  
Ra'ed Masa'deh

Organizations in the current environment need to create and sustain their competitive advantages. ERP (Enterprise Resource Planning) solutions are considered a strong tool that helps organizations to succeed and arise. But ERP projects’ implementation has relatively low success rates in which it may affect and shake the whole organizational performance. This study searches the power of software usability to achieve ERP Project Implementation Success (ERP-PIS) considering the mediating role of user information satisfaction (UIS). A set of research's hypotheses have been constructed. This study adapts a positivism view, using the survey strategy. The questionnaires were filled by 106 managers who use ERP systems or affected by ERP systems in different organizations. The findings of the research ensure the fitness of the model, and that mediation role of user information satisfaction (UIS) in Jordan is highly visible. Also, the research shows up the strong power of usability to achieve ERP-PIS. Based on the findings, development of ERP applications would be improved by software organizations in terms of usability, and organizations need to acquire ERP applications would also improve their decisions in choosing an ERP solution.


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