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Economic benefits of enterprise resource planning systems: some empirical evidence
Author(s) -
Matolcsy Zoltan P.,
Booth Peter,
Wieder Bernhard
Publication year - 2005
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.2005.00149.x
Subject(s) - enterprise resource planning , accounts receivable , profitability index , business , univariate , market liquidity , component (thermodynamics) , key (lock) , resource (disambiguation) , value (mathematics) , process management , operations management , industrial organization , multivariate statistics , accounting , finance , computer science , economics , computer network , physics , computer security , machine learning , thermodynamics
The present study provides empirical evidence on the economic benefits of enterprise resource planning (ERP) systems. We use a modified value chain approach and identify several ratios for each component of the value chain to reflect improvements as a result of the adoption of ERP systems. These financial ratios are tracked for 2 years for a group of companies that adopted ERP systems versus a group of companies that did not adopt ERP. Both univariate and multivariate statistics are used to test for differences. The key result of the present study is that the adoption of ERP systems leads to sustained operational efficiencies and improved overall liquidity. In addition, some support is found for increased profitability 2 years after the adoption of ERP and for improvements in accounts receivable management.