Articlegreen2014

Analyzing SMEs Size as a Moderator of ERP Impact in SMEs Productivity

17 citations0/0 files storedCommunications of the IIMA

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ERP Systems Implementation and Impact Information Technology Governance and Strategy Corporate Governance and Management

Abstract

Enterprise Resource Planning (ERP) vendors have emphasized a positive impact of their ERP projects in enterprise performance and in costs reduction. Recently, some researchers have started to analyze the impact on business performance of the organizational changes that complement IT investments. However, there is a lack of research studies on ERP impact in Small and Medium Enterprises (SME). Based on Cobb-Douglas production function, this paper attempts to analyze the impact of ERP implementations in SMEs’ productivity. We have collected data from 168 Spanish SMEs during the period 1997-2005, concerning the type of purchased ERP, implementation period, number of employees and some financial indicators. We use a cross-sectional and time-series model to compare and analyze the SMEs’ productivity evolution, before and after ERP implementations considering SMEs size as a critical variable to determine the level of productivity reached. Our preliminary findings suggest that SMEs size moderates ERP impact in their productivity. Therefore, researchers and practitioners should not consider all SMEs in the same package and they should have different strategies and approaches to obtain the best results in each ERP implementation.

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References

2021Econometric Analysis of Panel Data 1996Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending 1996Productivity, Business Profitability, and Consumer Surplus: Three Different Measures of Information Technology Value1,2 2003Computing Productivity: Firm-Level Evidence 2007Panel data analysis—advantages and challenges 2022Microeconomic analysis 2001Financial impacts of enterprise resource planning implementations 2003Enterprise resource planning systems: comparing firm performance of adopters and nonadopters

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