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Firm and employee effects of an enterprise information system: Micro-econometric evidence

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  • Jones, Derek C.
  • Kalmi, Panu
  • Kauhanen, Antti

Abstract

We investigate the impact of adopting an Enterprise Resource Planning (ERP) system in a retail chain and find interesting parallels between firm and employee outcomes. Concerning performance: (i) sales and inventory turnover initially drop by 7% and recover in 6-12 months; (ii) inventory turnover recovers more quickly for establishments adopting ERP later; and (iii) broader training produces faster sales recovery. Concerning employee outcomes, initially work intensifies, but in time employee outcomes improve. An implication for practitioners is that ERP success is best evaluated only when sufficient time has elapsed after implementation. Employers need to be aware that measures to minimize negative outcomes associated with implementation of enterprise information systems may be needed.

Suggested Citation

  • Jones, Derek C. & Kalmi, Panu & Kauhanen, Antti, 2011. "Firm and employee effects of an enterprise information system: Micro-econometric evidence," International Journal of Production Economics, Elsevier, vol. 130(2), pages 159-168, April.
    • Handle: RePEc:eee:proeco:v:130:y:2011:i:2:p:159-168
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    Cited by:

    1. Ram, Jiwat & Corkindale, David & Wu, Ming-Lu, 2013. "Implementation critical success factors (CSFs) for ERP: Do they contribute to implementation success and post-implementation performance?," International Journal of Production Economics, Elsevier, vol. 144(1), pages 157-174.
    2. Bartholomew Watson, 2011. "Barcode Empires: Politics, Digital Technology, and Comparative Retail Firm Strategies," Journal of Industry, Competition and Trade, Springer, vol. 11(3), pages 309-324, September.
    3. Sáenz-Royo, Carlos & Salas-Fumás, Vicente, 2014. "Long- and short-term efficiency in an automobile factory: An econometric case study," International Journal of Production Economics, Elsevier, vol. 156(C), pages 98-107.

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