Impact of the Quality of ERP Implementations on Business Value

This study compares the financial performance trend of successful and less successful ERP implementers over three years following the implementation. The findings indicate no significant difference in the change in ROA and ROI of the two groups of adopters. Successful ERP adopters however have statistically significant higher efficiency benefits in terms of Asset Turnover and Capital Turnover than the less successful ERP adopters in the first two years after implementation. The findings of this paper reveal no significant contribution of the implementation effort to the success of ERP implementations.

[1]  Theophanis C. Stratopoulos,et al.  Does successful investment in information technology solve the productivity paradox? , 2000, Inf. Manag..

[2]  Erik Brynjolfsson,et al.  The productivity paradox of information technology , 1993, CACM.

[3]  Nirup M. Menon,et al.  Information Technology Value through Different Normative Lenses , 2000, J. Manag. Inf. Syst..

[4]  Vernon J. Richardson,et al.  Returns on Investments in Information Technology: A Research Synthesis , 2002, J. Inf. Syst..

[5]  Robin S. Poston,et al.  Financial impacts of enterprise resource planning implementations , 2001, Int. J. Account. Inf. Syst..

[6]  Vinod Kumar,et al.  An investigation of critical management issues in ERP implementation: emperical evidence from Canadian organizations , 2003 .

[7]  Kenneth L. Kraemer,et al.  Information technology and economic performance , 2003, ACM Comput. Surv..

[8]  E. Brynjolfsson,et al.  Beyond Computation: Information Technology, Organizational Transformation and Business Performance , 2000 .

[9]  Kevin E. Dow,et al.  Information technology and organizational slack , 2004, Int. J. Account. Inf. Syst..

[10]  Kweku-Muata Osei-Bryson,et al.  Exploring the relationship between information technology investments and firm performance using regression splines analysis , 2004, Inf. Manag..

[11]  Eric T. G. Wang,et al.  The influence of governance equilibrium on ERP project success , 2006, Decis. Support Syst..

[12]  Jacqueline L. Reck,et al.  Market Reaction to ERP Implementation Announcements , 2001, J. Inf. Syst..

[13]  Chiara Francalanci,et al.  Predicting the implementation effort of ERP projects: empirical evidence on SAP/R3 , 2001, J. Inf. Technol..

[14]  Lorin M. Hitt,et al.  Productivity, Business Profitability, and Consumer Surplus: Three Different Measures of Information Technology Value , 1996, MIS Q..

[15]  Jacqueline L. Reck,et al.  Enterprise resource planning systems: comparing firm performance of adopters and nonadopters , 2003, Int. J. Account. Inf. Syst..

[16]  E. Brynjolfsson,et al.  Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending , 1996 .

[17]  James E. Hunton,et al.  The Reaction of Financial Analysts to Enterprise Resource Planning (ERP) Implementation Plans , 2002, J. Inf. Syst..