Impact Of Erp On Perfromance Of Albanian Companies; A Factorial Analysis

Nowadays companies are shifting their attention towards flexibility, savings and efficiency in order to win or to survive in the market. Sound Accounting Information Systems (AIS) are considered to be a critical factor for success that enables companies to gain competitive advantages and to perform business reengineering. Investments in AIS, specifically in ERP systems may be considerable because they require money, time, effort and personnel changes in the organization; therefore a careful analysis of their impact on the business performance should be made. Albania is a country with not a very long experience in the market economy, but nevertheless the manual AIS already belong to the past. In this paper we analyze the importance of ERP on the overall business performance. Through factorial analysis we study the most important factors for the success of the ERP. We find that three are the most important factors for the success of ERP, the Quality and flexibility of the system, Cost-efficiency of the system and the Quality of produced output. We also study the degree of impact of these factors depending on the size of the business. We find that the first factor has a low impact on small entities and a big impact for the large entities. While the second factor has not a clear impact (neither low, nor large) for the small entities but a large impact for the big business and the third factor has a low impact on the small/medium entities and a high impact on the large entities.