Enterprise Resource Planning Systems Implementation and Firm Performance: An Empirical Study
Irfan Ali 1, W.J.H. van Groenendaal 2 * , H. Weigand 2
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1 Shah Abdul Latif University, Khairpur, PAKISTAN
2 Tilburg University, Tilburg, THE NETHERLANDS
* Corresponding Author

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.

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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

https://doi.org/10.29333/jisem/7822

J INFORM SYSTEMS ENG, 2020 - Volume 5 Issue 1, Article No: em0109

Publication date: 06 Mar 2020

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