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Title:
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A MODEL FOR MEASURING THE IMPACT OF ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS ON ORGANIZATIONAL PERFORMANCE |
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Author(s):
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Paweena Wanchai |
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ISBN:
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978-989-8533-62-3 |
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Editors:
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Miguel Baptista Nunes, Pedro Isaías and Philip Powell |
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Year:
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2017 |
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Edition:
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Single |
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Keywords:
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ERP System, ERP Implementation, Business Performance, Organizational Performance, Developing Country |
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Type:
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Full Paper |
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First Page:
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117 |
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Last Page:
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124 |
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Language:
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English |
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Cover:
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Full Contents:
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click to dowload 
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Paper Abstract:
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Enterprise resource planning (ERP) systems are believed to produce operational improvements and sustained competitive advantage. However, multiple studies reveal contradictory results as to whether such expected benefits have materialized. The aim of this research is to propose a theoretically well-grounded method for measuring the long term impact, and benefits from ERP systems implementation. The theory and the method are discussed and tested in the context of organizations in Thailand. This research leverages three fundamental specifications for the examination of impacts as follows: performance ratios, labor productivity (production function), and stock market valuation (Tobins Q). Financial data were extracted for one year prior ERP systems implementation, and four years post-implementation, for a total of five years of financial data. The analysis suggests that 1) ERP systems do not have a significant effect on firm performance even after four years of implementation and 2) the specific modules implemented do not make a substantial difference to firm performance either. This study adds value to the knowledge base by helping understand the impact that ERP systems have on organizational performance. |
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