Investment in Enterprise Resource Planning: Business Impact and Productivity Measures

“…(1999) Bradford y Florin (2003) Avital y Vandenbosch (2000) Boon et al. (2003) Duplaga y Astani (2003) Brown y Vessey (1999) Buckhout et al. (1999) Hitt et al. (2002) Gardiner et al. (2002) Gupta (2000) Hong y Kim (2002) Hirt y Swanson (1999) Krumbholz y Maiden (2000) Hunton et al. (2003) Hislop…”

“One of the most significant benefits of ERP is its ability to automate complex business processes, significantly reducing operational costs for companies (Hitt, Wu, & Zhou, 2002; Nicolaou, 2004).”

“Scholars have shown that investing in suppliers improves various financial performance measures, such as return on assets (Hitt et al., 2002 ), return on investment (Flynn et al., 2010 ), or the Sharpe ratio (Swink et al., 2010).”

“However, when analyzing adopting firms only, these had consistently better performance during than before or after implementation, with the exception of accounts receivable turnover, which improves both during and after adoption (Hitt et al., 2002). Hunton, Lippincott, and Reck (2003) compare the performance of pairs…”

“The integration information system used by a company is expected to be able to process and analyze transactions and financial reporting efficiently and accurately so that the company can inform the data of financial transaction (accounting data) quickly to its users (Hitt, Wu & Zhou, 2002).”

“First, both schemes were based on the functional scope of the firm such as human resources, manufacturing, and finance; justification supporting those schemes was limited (Brown & Vessey, 1999; Hitt et al., 2002).”

“Although ERP benefits have been largely reported in case studies or qualitative discussions, however, more statistical evidence is needed to prove the claimed benefits (Hitt et al., 2002).”

“Since the 1990s, empirical studies of MRP (Hitt and Zhou, 2002; Hunton et al., 2003; Murphy and Simon, 2002; Yusuf and Little, 1998) and JIT (Fullerton and McWatters, 2001; Hum and Ng, 1995; Salaheldin and Francis, 1998; Sriparavastu and Gupta, 1997) start to appear.”

“According to Hitt, Wu, and Zhou (2002), ERP solutions help businesses increase their ability to provide information to customers, reduce turnover periods and increase on-time execution rates leading to better operational ef fi ciency.”

“Although the implementation is both difficult and costly, adopters tend, for instance, to generate more revenue per unit of input, as they manage inventories and accounts receivable more aggressively [ 4 ].”

“In a similar focus, but with a different sample consisting of 350 firms that adopted SAP, Hitt et al. (2002)”

“This omitted the choice of indicators such as return on assets, inventory turnover, return on equity, or profit margins, which can be found in many productivity impact studies (Hitt et al., 2000).”

“…technologies and business software provides management with data that make performance measurement more accurate than before (Aral et al., 2006; Hitt et al., 2002; Aral et al., 2012; Collazos et al., 2019; Koriat and Gelbard, 2019; Bayo-Moriones et al., 2022; Alade, 2023), so managers can…”

“(2002)에 의해 수행된 실증연구에 따르면 다년간 기업의 ERP 시스템 도입과 재무자료를 확인해 본 결과 도입초기에는 생산성이나 성과가 다소 느슨하게 나타났지만 점차 조직 내에 해당 시스템이 정착되어 가 면서 결과적으로 재무상황의 개선되는 것으로 드러났다 [42].”

“This integrated system removes cross functions barrier and result in managers capability to access, process, analyse and disseminate accounting information to external users quickly [36], [27], [32].”

“Therefore, in addition to providing the linkage and integration of various enterprise segments, ERP systems decrease the cost and time of data exchange, likely enhancing firm performance as a result (Hitt et al., 2002; McAfee, 1999).”

“Typical benefits of ERP systems commonly cited in the literature include, but are not limited to, inventory and lead time reductions, improved on-time deliveries, reduced operating costs, enhanced customer relationships (Hitt et al., 2002) and improved decision making.”

“Hitt et al. (2002) utilized Standard and Poor’s Compustat II database to construct various measures to calculate productivity necessarily, stock market valuation and company performance, and indicated that companies investing in ERP tend to show higher performance across a wide variety of financial…”

“Regardless of the system type, it has been demonstrated that financial markets consistently reward ES adopters with higher market valuations than non-adopters [40], [41].”

“While some studies have explored the effects of new technologies adoption and investment, such as Enterprise Resource Planning systems (Hitt, Wu, and Zhou 2002), e-commerce (Subramani and Walden 2001), blockchain (Klöckner, Schmidt, and Wagner 2022), cloud computing (Chen, Guo, and Shangguan 2022)…”

“Prior literatures of business value of IT have also considered specific IT applications, including enterprise resource planning [33], customer relationship management [31], knowledge management systems [54], e-commerce [22], supply chain management systems [21], and other IT infrastructure applications [17] studies re…”

“De este modo, aunque no existe un consenso sobre el impacto positivo del sistema ERP sobre el rendimiento (Brynjolfsson & Hitt, 2000; Hitt et al., 2002; Mabert, Soni & Venkataramanan, 2003; Banker, Bardhan, Chang & Lin, 2006), existe evidencia empírica del impacto favorable sobre la gestión de la…”

“As Hitt et al. (2002) point out, there are many papers that study the benefits of the ERP systems through case studies, but more general studies are also of interest.”

“…as suggested by the growing scholarly literature that seeks to conceptualize and measure types of organizational outcomes, business impacts, and return on investment among ERP adopter firms (e.g. Hawking and Stein, 2004; Hitt et al., 2002 ; Hunton et al., 2003; Spathis and Constantinides, 2003).”

“Hitt, Wu and Zhou [14] revealed that firms implementing ERP systems showed significant improvements as apposed to those that did not invest in such systems.”

“So, to maximize IT value, firms need to structure their business models and processes to take the fullest advantage of their technology investment capabilities [18].”

“According to Hitt et al. (2002), ERP implementation is a challenging and risky task.”

“Also, Hitt et al. (2002) demonstrate an inverse relationship between the benefit derived from enterprise systems and the number of implemented modules.”

“1 Implemented properly, ERP can impact all operational aspects of a business (Hitt et al., 2002), and reshape the way financial and non-financial information is collected, processed, prepared, audited, and disseminated (Brazel & Dang, 2008).”

“They can be defined as customizable off-the-shelf software packages that integrate information and business processes within and beyond an organization’s boundary [1].”

“concerning the impact of ERP systems, on firm performance [27] [28] [38] [39] [51] [26] with mixed results.”

“Empirical evidence confirming positive impacts of enterprise software on several different measures of firm performance is given for example by Aral et al. (2006), Hitt et al. (2002) and Engelstätter (2011).”

“…is that they represent a contrast to Tayloristic work systems associated with functional specialists, and favor more decentralized and horizontal organizations with workers performing multiple tasks, working in teams, and solving semi-structured problems [Cappelli 1996; Hitt et al. 2002].”

“While there is a well-established body of research on IT productivity (Aral et al., 2012; Brynjolfsson & Hitt, 1996; Hitt et al., 2002; Lee at al., 2013; Menon et al., 2000; Tambe & Hitt, 2012), researchers have pointed out that studies have disproportionately focused on manufacturing industries (Aral et al.”

“ERP systems become increasingly important for all kinds of business models and are essential for the digitalization process of corporations (Haddara and Elragal 2015; Hitt et al. 2002).”

“These packages can facilitate the flow of information between all supply chain processes (internal and external) in an organization [12].”

“…Hunton and Reck 2001; Hunton, Lippincott and Reck 2003), improving managers ability to process and analyze accounting information (Davenport 1998; Hitt et al. 2002), providing information that enable management to have a whole view of firm’s financial condition (Dillon 1999), decreasing…”

“…implementing ERP systems exhibit higher operational efficiency (Hitt et al. 2002; Aral et al. 2006; Dehning et al. 2007; Karimi et al. 2007), and enterprises with high operational efficiency tend to have higher capital returns (Hitt et al. 2002; Hendricks et al. 2007; Dehning et al. 2007).”

“While ERP systems have been extensively examined in previous research [11, 12] other IS have received less attention.”

“…research evaluates ERP performance by measuring financial indexes such as cost decreases, productivity improvement, and profit increases (e.g., Hitt et al., 2002), many scholars suggest that intangible organizational improvements should also be considered when evaluating whether or not an…”

“Although literature seemed to agree that IFMIS improves the overall performance of the organization, there are still some concerns expressed by some scholars that there might be reverse causality between pre- and post- implementation with a drop in some performance indicators (Hitt et al., 2002).”

“Many business firms implemented ERP software systems to attain the required benefits and process they needed [12].”

“Huey‐Wen et al. (2014) came to similar conclusions; he focused on implementation failures and stated that most organisations consider ERP to be not effective in achieving business objectives.”

“Some researchers have argued that there is a positive relationship between IT capability and firm performance (Bharadwaj, 2000; Hitt et al., 2002; Santhanam and Hartono, 2003), whereas other researchers have revealed that there is no significantly positive relationship between IT capability and…”

“The ultimate goal in the field of EAI is to provide companies with technologies, tools, and methods that help cut integration costs off (Chalmeta and Pazos, 2015; Hitt et al., 2002; He and Xu, 2014).”