An Integrated Approach to Performance Evaluation of Enterprise Resource Planning (ERP) System Implementation

Paweena Wanchai
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Paweena Wanchai: Khon Kaen University, Khon Kaen, Thailand

Journal of Electronic Commerce in Organizations (JECO), 2019, vol. 17, issue 3, 1-15

Abstract: In spite of the immense expenses related with enterprise resource planning (ERP) systems execution and use, its effect on organizational performance stays vague. The goal of this study was to empirically examine the impact of ERP implementation and use on the long-term performance of organizations. This research leverages three fundamental specifications for the examination of impacts as follows: performance ratios (ROA, ROE, ROI, ROS), labor productivity (production function), and stock market valuation (Tobin's Q). This research used a total of six years of financial data from 47 organizations in Thailand that implement and use ERP system. The findings reveal that a post-adoption period of more than four years may be needed in order to observe a significant impact from ERP investments on organizational performance.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:igg:jeco00:v:17:y:2019:i:3:p:1-15

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