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Relationship between the quality of information from ERP systems and business performance: Controlling analysis using DuPont system

Author

Listed:
  • Vesna Pavković

  • Dražena GaÅ¡par

  • Dominik Jukić

Abstract

The aim of this paper is to determine the relationship between the quality of information from the Enterprise Resource Planning system (ERP system) and business performance. The quality of information from the ERP system is assessed using a survey questionnaire examining the end users of the ERP system, namely middle and top management because they use information from the ERP system to make business decisions. Business performance is monitored from a controlling point of view, using selected indicators from the DuPont system. Empirical research was conducted on medium and large enterprises in Bosnia and Herzegovina. The existence of a positive correlation between information quality and business performance was examined using regression analysis and correlation analysis. Regression analysis and correlation analysis indicate that return on sale (ROS) and return on assets (ROA) have a medium significant correlation with the quality of information, and total asset turnover ratio (TR) does not correlate with the quality of information. Based on the obtained results, a positive relationship between the quality of information from the ERP system and business performance was confirmed. This can be interpreted that information is becoming an increasingly important resource in supporting organizational activities, and information quality has been identified as one of the main determinants influencing the decision-making process.

Suggested Citation

Handle: RePEc:etl:journl:1
DOI: 10.5937/bhekofor2201111p
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