The Impact of Enterprise Resource Planning (ERP) Systems on the Audit Report Lag

2013 ◽  
Vol 10 (1) ◽  
pp. 63-88 ◽  
Author(s):  
Jongkyum Kim ◽  
Andreas I. Nicolaou ◽  
Miklos A. Vasarhelyi
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Test Results ◽  
Audit Report ◽  
Erp Systems ◽  
Erp Implementation ◽  
Accounting Systems ◽  
Business Operations ◽  
The Impact ◽  
The Relationship

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.

Effect of business characteristics and ERP implementation on business outcomes

2014 ◽  
Vol 37 (2) ◽  
pp. 186-206 ◽  
Author(s):  
Pairin Katerattanakul ◽  
James J. Lee ◽  
Soongoo Hong
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Erp Systems ◽  
Erp Implementation ◽  
Content Type ◽  
Business Outcomes ◽  
Make To Order ◽  
The Relationship

Purpose – This study is an exploratory study aiming to explore whether different groups of manufacturing firms with similar business characteristics and enterprise resource planning (ERP) implementation approaches would experience different business outcomes from ERP implementation. The paper aims to discuss these issues. Design/methodology/approach – Cluster analysis with data collected from 256 Korean manufacturing firms was employed to identify groups of manufacturing companies having similar business characteristics and adopting similar ERP implementation approaches. Then, the differences in business outcomes from implementing ERP systems among these groups of companies were examined. Findings – Company size and production approaches are useful variables for grouping manufacturing firms into clusters of companies with similar characteristics. Additionally, large manufacturing firms with make-to-order production approach have significantly higher perceived benefits from implementing ERP systems regarding external coordination and competitive impact than other firms do. Research limitations/implications – This study was conducted in only one industry of one country and used the data collected by self-reporting instrument. Thus, further studies conducted in other industries and/or other countries and using more objective measures would allow more generalizability of the findings of this study. It would also be interesting to investigate the effects of the logistics practices adopted by small manufacturing firms even though these practices may be more suitable for large manufacturing firms. Originality/value – This study contributes to the literatures on benefits obtained from implementing ERP systems as none of the previous studies has focused on the relationship among business characteristics, ERP implementation approaches, and business outcomes from ERP implementation.

The Impact of Organizational Slack and Lag Time on Economic Productivity

2017 ◽  
Vol 13 (3) ◽  
pp. 36-50
Author(s):  
Terry W. Mason ◽  
John J. Morris
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Manufacturing Firms ◽  
Organizational Slack ◽  
Erp Systems ◽  
Productivity Improvement ◽  
Economic Productivity ◽  
Increase In Productivity ◽  
The Impact ◽  
The Relationship

Much like research on the productivity paradox of the 1980s, empirical research has not provided a clear association between investments in enterprise resource planning (ERP) systems and improved productivity, even though these systems were designed, developed, and marketed as productivity improvement tools. This paper explores the relationship between organizational slack and productivity improvements resulting from investments in ERP systems. The authors provide support for the proposition that during the period of time surrounding implementation, firms build organizational slack; and following implementation organizational slack is absorbed and productivity increases. Furthermore, the authors find that even though manufacturing firms drive the decrease in organizational slack during the post-ERP period, the magnitude of the increase in productivity is significantly larger for non-manufacturing firms.

scholarly journals SOX And ERP Adoption

2011 ◽  
Vol 7 (4) ◽  
Author(s):  
David J. Emerson ◽  
Khondkar E. Karim ◽  
Robert Rutledge
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Critical Factors ◽  
Erp Systems ◽  
Advantages And Disadvantages ◽  
Sarbanes Oxley ◽  
The Impact ◽  
The Relationship

The objective of this paper is to examine the relationship between the implementation of the Sarbanes-Oxley (SOX) legislation and Enterprise Resource Planning (ERP) systems, and to investigate the impact that the passage of this legislation has had on the decision for companies to adopt ERP technology.  The legislation itself is discussed, along with an analysis of ERP systems, including their components, their advantages and disadvantages, and the critical factors and crucial components which must be present for the successful deployment of such systems.  This paper explores the contributory effect of SOX on ERP adoption.  The authors concluded that SOX merely accelerated an inevitable process.  The best managers will always find and use the best tools to maximize benefits to their organizations.  The requirements of Sarbanes-Oxley forced companies to rethink their processes and technology, and therefore may have provided the final incentive for companies to commit to ERP.

scholarly journals DAMPAK IMPLEMENTASI ENTERPRISE RESOURCES PLANNING (ERP) ATAS PENGARUH PROFITABILITAS TERHADAP NILAI PERUSAHAAN

2017 ◽  
Vol 9 (1) ◽  
pp. 15
Author(s):  
Windia Fita Rini ◽  
Dewi Febriani
Keyword(s):  
Enterprise Resource Planning ◽  
Firm Value ◽  
Stock Exchange ◽  
Market Price ◽  
Resource Planning ◽  
Erp Implementation ◽  
Enterprise Resources Planning ◽  
Improved Performance ◽  
The Impact ◽  
The Relationship

Abstract. The purpose of this study was to determine the impact of moderation implementation of Enterprise Resource Planning (ERP) on the relationship the firm’s performance to firm value. The sample used is a firm listed on the Indonesia Stock Exchange that implement ERP. This study uses a panel regression statistical method. The results of this study that are profitability, firm size, investment opportunities, and the interaction of ERP and profitability significantly influence the market price of the equity. The conclusion of this study are companies that implement ERP under the term of 4 years have improved performance compared to companies that do not implement ERP, but the ERP implementation in the study had an impact on the impairment of the company's short-term post ERP implementation.Keywords: ERP; firm value; profitability; investment Abstrak. Tujuan dari penelitian ini adalah untuk membuktikan secara empiris dampak dari implementasi Enterprise Resource Planning atas hubungan kinerja perusahaan (profitabilitas) terhadap nilai perusahaan. Sample yang digunakan adalah perusahaan yang terdaftar di Bursa Efek Indonesia yang sudah menerapkan ERP. Penelitian ini menggunakan metode regresi berganda dengan data panel. Hasil dari penelitian membuktikan bahwa profitabilitas, ukuran perusahaan dan peluang investasi sebagai variabel kontrol, dan interaksi antara ERP dengan profitabilitas berpengaruh secara signifikan terhadap nilai perusahaan dengan menggunakan nilai pasar saham. Kesimpulan dari penelitian ini adalah perusahaan yang menerapkan ERP memiliki kinerja yang lebih baik dibandingkan dengan sebelum menerapkan ERP.Kata Kunci: ERP; kinerja perusahaan; profitabilitas; investasi

Socio-Technical Change Perspective for ERP Implementation in Large Scale Organizations

2018 ◽  
pp. 2975-2987 ◽  
Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel
Keyword(s):  
Organizational Change ◽  
Enterprise Resource Planning ◽  
Large Scale ◽  
Resource Planning ◽  
Business Environment ◽  
Erp Systems ◽  
Erp Implementation ◽  
Firm Level ◽  
Erp System ◽  
Technical Theory

Organizations require to enhance their firm level resources to compete in turbulent business environment. Strategic application systems, such as an Enterprise Resource Planning (ERP) System is one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large scale organizational change and hence it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence this chapter applies a General Morphological Analysis(GMA) to identify the most suitable theory to analyse ERP implementation. Socio technical theory with Leavitt's diamond model was analysed as most appropriate since they are based on the of premises organizational change at firm level. Socio technical organizational change model will enable stakeholders to analyse resources required for core dimensions of the organization for ERP implementation.

An Investigation of Enterprise Resource Planning Implementation in a Small Firm

2013 ◽  
pp. 57-80
Author(s):  
Magdy Abdel-Kader ◽  
Thu Phuong Nguyen
Keyword(s):  
Decision Making ◽  
Small Firm ◽  
Enterprise Resource Planning ◽  
Implementation Process ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp Implementation ◽  
Erp System ◽  
Small Organizations ◽  
Selection Processes

Enterprise Resource Planning (ERP) systems have been recognized as complex and costly, which limited their implementation in large organizations. However, an increasing number of small organizations have recently gained interest in this system. This paper investigates the implementation process of ERP in a small firm. The investigation focused on two perspectives of ERP implementation: successes achieved and problems encountered. Despite many problems encountered in the firm, the ERP system still exists. This gives evidence that small organizations are more flexible and motivated to adapt to change and implement an ERP system. Most problems were encountered at early stages of implementation, which can be minimized if deliberate decision making of ERP implementation and proper selection processes were in place. Further, ERP is a good solution for small organizations if they are able to build a relevant in-house system.

The Impact of Enterprise Resource Planning Systems on Organizational Effectiveness

2011 ◽  
pp. 78-96
Author(s):  
Jonas Hedman ◽  
Andreas Borell
Keyword(s):  
Organizational Effectiveness ◽  
Enterprise Resource Planning ◽  
Open Systems ◽  
Resource Planning ◽  
Organizational Impact ◽  
Competing Values ◽  
Erp Systems ◽  
Enterprise Resource Planning Systems ◽  
Systems Models ◽  
The Impact

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.

ERP Systems in Universities

2011 ◽  
pp. 43-60 ◽  
Author(s):  
Dave Oliver ◽  
Celia T. Romm
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Electronic Data Interchange ◽  
Process Reengineering ◽  
Erp Systems ◽  
Web Based ◽  
Business Operations ◽  
Application Systems ◽  
Frequent Use ◽  
Data Interchange

This chapter outlines the significance of enterprise resource planning (ERP) systems and analyses the rationale used for their adoption. This study is structured around a theory of the motivations for investment in information technology (IT) to support core business operations. The data used for the study are documents published electronically on the Internet by universities. A content analysis was applied to this data. The chapter employs frequent use of quotes from the sources selected to assist the reader to understand the context and to verify the analysis. The findings are that the main reasons for adopting ERP are the modernization of systems, greater usability and flexibility, integration of data and systems, business process reengineering, an increase in the degree of electronic data interchange including the provision of Web-based interfaces to application systems, reduced maintenance and risk avoidance.

scholarly journals The Impact of Enterprises Systems on Sales Performance: A Study of Erp System Implementations in Polish Smes

2014 ◽  
Vol 5 (2) ◽  
pp. 54-59 ◽  
Author(s):  
Justyna Patalas-Maliszewska ◽  
Irene Krebs
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Sales Performance ◽  
Erp Implementation ◽  
Erp System ◽  
Financial Benefits ◽  
Sales Process ◽  
Return On Sales ◽  
Implementation Problems ◽  
The Impact

Abstract While having been the object of numerous studies, the link between ERP implementation and SMEs performance still requires understanding. This paper documents the effect of investments in Enterprise Resource Planning (ERP) systems on a firm’s sales performance and profitability measure such as return on sales (ROS). The models are based on a sample of 240 during time of defined activities in the sales process realized during the each month by 40 knowledge workers in each of 5 Polish SMEs announcements of ERP implementations. Our analysis of the financial benefits of these implementations yields mixed results. Our results are encouraging that we find the business activity that can persistent evidence of sales performance associated with ERP investments. This should help alleviate the companies that some have expressed about the viability of ERP given the highly publicized implementation problems at some firms.

Sign in / Sign up

Export Citation Format

Share Document