Firm Performance Effects in Relation to the Implementation and Use of Enterprise Resource Planning Systems

2004 ◽  
Vol 18 (2) ◽  
pp. 79-105 ◽  
Author(s):  
Andreas I. Nicolaou

Research indicates that successful adoption of information technology to support business strategy can help organizations gain superior financial performance. The recent wave of enterprise-wide resource planning systems adoptions is a significant commitment of resources and may affect almost all business processes. This study examines the effect of adoption of enterprise systems on a firm's long-term financial performance. A large-scale data identification and collection method compared the financial data of 247 firms adopting enterprise wide systems with a matched control group of firms cross-sectionally and longitudinally before and after adoption. A number of implementation characteristics were also measured and their effects assessed. The results show that firms adopting enterprise systems exhibit higher differential performance only after two years of continued use. Furthermore, controlling for implementation characteristics as vendor choice, implementation goal, modules implemented, and implementation time period, helped explain the financial performance effects of enterprise resource planning system use. These results provide important insights that complement extant research findings and also raise future research issues.

2019 ◽  
pp. 097215091984975 ◽  
Author(s):  
Adejare Yusuff Aremu ◽  
Arfan Shahzad ◽  
Shahizan Hassan

The objective of this study is to examine the mediating role of enterprise resource planning (ERP) system adoption on the relationship between performance of medium enterprises (PMEs) and organizational culture (OC), communication process (CP), organizational structure (OS), information technology readiness (ITR), technological change (TC), government policy (GP), information access (IA) and technology infrastructure support (TIS). This study also includes the role of top management support (TMS) as a moderating variable on the relationship between ERP and PME. This study proposes a theoretical framework based on theories such as resource-based view, contingency theory and diffusion of innovation. The data were collected from medium-sized enterprise (ME) organizations operating in South Western Nigeria. A total of 658 questionnaires were distributed to selected MEs and only 355 were returned and used for the analysis. The empirical data were analyzed using the Partial Least Squares Structural Equation Modelling (PLS-SEM). The results showed that CP, ERP, GP, IA, ITR, OC, OS, TC, TIS and TMS have significant direct relationships with the ERP and PME while GP is not significantly linked to ERP adoption. Moreover, IA, ITR, OC, OS and TC have no significant relationship with PME while ERP system adoption mediates the relationship between the CP, OC, OS, TC and TIS with PME. The findings showed that the presence of CP, OC, OS, TC and TIS will influence the PMEs in the adoption of ERP and confirmed that TMS plays an important role in moderating the relationship between ERP and PME. The findings provide important insights to CEO, managers, policymakers and researchers to help them understand the importance of using the ERP system to enhance the performance of medium-sized enterprise (PMSE) organizations. Limitation of the study is based on MEs only. In this light, future research can focus on the evolution of not only small enterprises but also large firms.


2016 ◽  
Vol 11 (01) ◽  
Author(s):  
Pallavi Jain ◽  
Jai Kishore Tyagi

The purpose of this research paper to present thesynthesized theoretical and empirical literature to help in thedevelopment of propositions and suggestions of a researchagenda on the acceptance of ERP systems and their link with financial performance. The paper develops the technologyacceptance model (TAM) to synthesize relevant literature andto develop proposition for future research agendas. This researchprovides a positive association between the acceptance of ERPsystems and financial performance. Also, the use of TAMtheory provides further insight into identifying the acceptancefactors of ERP.


Author(s):  
Ali Serhan ◽  
Wissam El Hajj

Abstract In accounting, enterprise resource planning system is the database software package for supporting all corporations’ operations and processes such as marketing, human resources, finance, manufacturing, and several others. ERPS stores different forms of data for various computerized functions in a single database, user interface, and application. Although ERPS were initially utilized by huge manufacturing corporations, they are currently used by all sizes of businesses. Therefore, there is a need to identify the performance advantages that businesses gain from ERPS together with its impact on the performance of a firm. The goal of the research is to offer insights regarding the implementation of ERPS and their influence on organizational performance. The study will determine the benefits of ERPS, identify if there is a reliable or valid performance measurement system that connects ERPS to the performance of the organization, identify if ERPS have a positive effect on the performance of a company in the time periods after implementation and finally set the success factors accountable for the ERPS benefits. Accordingly, the study will establish the effect of ERPS on the performance of a company. The study will be a quantitative research where questionnaires will be used to collect the primary data. Purposive sampling will be used to obtain 50 answers from accounting experts so that to evaluate the effect of ERPS on financial performance and auditing of Lebanese firms. Moreover, financial performance indicators will be used to assess the overall company performance together with supply-chain operations. Quantitative analysis of data will be done through the use of SPSS based on the research objectives.


Author(s):  
Paul Chou

In order to survive in competitive markets, modern organizations introduce enterprise resourcing planning systems to enhance their competitive positions and their survivability in competitive markets. Nevertheless, organizations often fail to utilize and explore this new system's functionalities to achieve business objectives and have not fulfilled their expected effectiveness after adopting it. Given that countless companies fail to implement ERP systems successfully in recent decades, the aim of this study is to explore the inner workings of employees' attitudes towards ERP systems from the perspective organizational change. The results from a sample of 334 respondents in Taiwan provide additional insight into the mechanism through which transformational leadership influences employees' attitudes towards ERP systems.


Author(s):  
Anne Lämmer ◽  
Sandy Eggert ◽  
Norbert Gronau

Enterprise systems are being transferred into a service-oriented architecture. In this article we present a procedure for the integration of enterprise systems. The procedure model starts with decomposition into Web services. This is followed by mapping redundant functions and assigning of the original source code to the Web services, which are orchestrated in the final step. Finally an example is given how to integrate an Enterprise Resource Planning System and an Enterprise Content Management System using the proposed procedure model.


2017 ◽  
Vol 12 (8) ◽  
pp. 1 ◽  
Author(s):  
Fashaya Johnson ◽  
Thanasak Ruankaew

It is widely accepted that firms can achieve effective inventory management with the right strategies. This study analyzed the inventory control strategies of small to medium-sized enterprises (SMEs) in Jamaica. The objectives of the study were to identify whether these companies used the “best practices” in inventory control, the effects of their strategies on business performance, and the factors that affected the development of their strategies. The study employed a methods triangulation approach that included case studies, interviews, questionnaires, and observation with a focus on twelve inventory-intensive SMEs in retail and manufacturing/distribution industries. The SMEs were found to use common inventory control strategies such as stock counts, Enterprise Resource Planning (ERP) systems, forecasting, and inventory classification.The findings of this study support institutional theory and isomorphism because it was discovered that due to external influences, firms studied within the same industry adopted similar strategies, and even in different industries, the ‘best practices’ in inventory control were the same. The drivers of this isomorphic organizational behavior were found to be costs, government regulations, and imitation of successful strategies in other companies. The SMEs surveyed were classified as semi-automated due to limited automation and confirmed success in their inventory management. The study validates the existence of institutionalism among SMEs in the retail as well as manufacturing/distribution industries in Jamaica. A broader scope examining larger firms and other industries would further identify isomorphic organizational behavior across the Jamaican business landscape. For future research, an investigation of financial performance and changes and adoption of new inventory control strategies of Jamaican SMEs is recommended to achieve a broad view of inventory management on the financial performance of Jamaican SMEs.


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