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Firm and Employee Effects of an Enterprise Information System: Micro-econometric Evidence

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  • Derek C. Jones

    ()

  • Panu Kalmi
  • Antti Kauhanen

Abstract

We investigate the impact of adopting an enterprise resource planning (ERP) system on performance changes and employee outcomes in a retail chain. We find that: (i) sales and inventory turnover initially drop by 7 % and recover in 6-12 months; (ii) inventory turnover recovers more quickly for establishments that adopt ERP later; (iii) employee outcomes, including increased workload, greater job difficulty and enhanced multitasking, vary significantly over time, though implications for employee welfare are ambiguous.

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File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp992.pdf
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Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp992.

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Length: pages
Date of creation: 01 Jun 2010
Date of revision:
Handle: RePEc:wdi:papers:2010-992

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Keywords: enterprise resource planning; retailing; Finland; IT;

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References

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  1. Motwani, Jaideep & Mirchandani, Dinesh & Madan, Manu & Gunasekaran, A., 2002. "Successful implementation of ERP projects: Evidence from two case studies," International Journal of Production Economics, Elsevier, Elsevier, vol. 75(1-2), pages 83-96, January.
  2. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 14(4), pages 23-48, Fall.
  3. Chang, Man-Kit & Cheung, Waiman & Cheng, Chun-Hung & Yeung, Jeff H.Y., 2008. "Understanding ERP system adoption from the user's perspective," International Journal of Production Economics, Elsevier, Elsevier, vol. 113(2), pages 928-942, June.
  4. Hansen, Christian B., 2007. "Asymptotic properties of a robust variance matrix estimator for panel data when T is large," Journal of Econometrics, Elsevier, Elsevier, vol. 141(2), pages 597-620, December.
  5. Plaza, Malgorzata & Rohlf, Katrin, 2008. "Learning and performance in ERP implementation projects: A learning-curve model for analyzing and managing consulting costs," International Journal of Production Economics, Elsevier, Elsevier, vol. 115(1), pages 72-85, September.
  6. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 117(1), pages 339-376, February.
  7. Maryellen R. Kelley, 1994. "Productivity and Information Technology: The Elusive Connection," Management Science, INFORMS, INFORMS, vol. 40(11), pages 1406-1425, November.
  8. David H. Autor & Frank Levy & Richard J. Murnane, 2002. "Upstairs, downstairs: Computers and skills on two floors of a large bank," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(3), pages 432-447, April.
  9. Botta-Genoulaz, Valerie & Millet, Pierre-Alain, 2006. "An investigation into the use of ERP systems in the service sector," International Journal of Production Economics, Elsevier, Elsevier, vol. 99(1-2), pages 202-221, February.
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Cited by:
  1. Bartholomew Watson, 2011. "Barcode Empires: Politics, Digital Technology, and Comparative Retail Firm Strategies," Journal of Industry, Competition and Trade, Springer, Springer, vol. 11(3), pages 309-324, September.
  2. 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, Elsevier, vol. 144(1), pages 157-174.

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