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Financial Performance And Enterprise Resource Planning Implementation: A Study Of Manufacturers In Taiwan

In: Challenges In Information Technology Management

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  • CHIEN-WEN SHEN

    (Department of Logistics Management, National Kaohsiung First University of Science and Technology No. 2, Jhuoyue Rd., Kaohsiung City, 811, Taiwan)

Abstract

AbstractEven though Enterprise Resource Planning (ERP) systems are increasingly implemented in today's business environment, results of ERP investments remain debatable. This study would like to investigate the financial impacts of ERP systems for the manufacturing sector in Taiwan. Findings demonstrate that most of performance indexes show no significant differences after ERP installation. Only two indexes such as “Inventory Turnover” and “Average Number Days Inventory in Stock” show significant improvement after 2 or 3 year ERP implementation. Other indexes such as “Return on Equity” and “Return on Assets” even have worse performance than before. This outcome implies that ERP systems have not shown significant benefits with respect to financial performance under our short-term observations. It may take longer period to see real financial advantages like the ERP vendors claimed.

Suggested Citation

  • Chien-Wen Shen, 2008. "Financial Performance And Enterprise Resource Planning Implementation: A Study Of Manufacturers In Taiwan," World Scientific Book Chapters,in: Challenges In Information Technology Management, chapter 15, pages 99-105 World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789812819079_0015
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    Keywords

    Information Technology; Knowledge Management; Computing;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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