Enterprise Resource Planning Systems Implementation and Firm Performance: An Empirical Study

Abstract

Adopting an ERP system is a challenge for any firm and the problems associated with it initially often negatively affect the adopting firm's profitability as measured through a firm's main financial indicators. Also for a longer period of time after implementation the empirical results on adoption are mixed, although more positive results have been reported in recent years. However, over the many years of implementing ERP systems much knowledge has been gained on how to improve the implementation process and speeding up the realization of the benefits. This research investigates whether Pakistani manufacturing firms profited from this by realizing the financial benefits early on. This is empirically tested by comparing ten financial performance indicators of firms that adopted an ERP system to that of non-adopters between 2002 and 2012. The results show that they benefitted from the start, but not in all areas.

Financial Reporting Quality Among Deposit Taking Saccos: What Unties the Ties

“…ERP usage also resulted in improved efficiency and effectiveness and these in turn make the supermarkets achieve their missions and goals. Ali et al (2020) made an attempt to explain the strength of enterprise resource planning in promoting profitability. The main tenets of the study were to investigate the role of ERP system, firm size, management efficiency and capital adequacy on profitability.…”

“…Although Njihia and Mwirigi (2014) looked at ERP, the study involved micro and small enterprises and therefore cannot be generalized to DTS. While Ali et al (2020) based his argument on commercial banks while Rono (2020) analyzed how ERP offered support to the quality of financial reporting of supermarkets and consequently the findings are likely to be different from those of DTS.…”

Integrasi Sistem ERP, Arus Informasi Dan Kualitas Informasi

“…Namun, literatur secara luas mengakui potensi ERP untuk meningkatkan arus informasi, yang terutama mengacu pada a) kapasitas untuk meningkatkan manajemen data dan untuk memungkinkan integrasi dan berbagi data (Chapman dan Kihn, 2009); b) kemungkinan untuk berbagi informasi yang konsisten di JAA 5.1 berbagai bidang fungsional (Kihn dan Näsi, 2017); c) kapasitas untuk meningkatkan keandalan, ketepatan waktu, perbandingan dan relevansi informasi (Kallunki et. al, 2011); (Ali et. al, 2020); d) kemungkinan untuk mencapai arus informasi yang fleksibel (Rikhardsson dan Yigitbasioglu, 2018).…”