An Empirical Study on the Effect of ERP Implementations on Organizational Performance in Small and Medium Manufacturing Companies

Revisiting the Relationship between Information Technology Capability and Firm Performance: Focusing on the Impact of the Adoption of Enterprise Resource Planning Systems

“…With a sample of Korean companies, there have been attempts to investigate the impact of ERP adoption on firm performance, though most studies confirmed a significant positive impact. Focusing on small and medium-sized manufacturing companies, Hong et al (2009) examined the effect of ERP implementation from a Balanced Score Card (BSC) perspective. Based on a survey of 96 companies, the authors found a positive relationship between ERP implementation and organizational performance (Hong et al, 2009).…”

“…Focusing on small and medium-sized manufacturing companies, Hong et al (2009) examined the effect of ERP implementation from a Balanced Score Card (BSC) perspective. Based on a survey of 96 companies, the authors found a positive relationship between ERP implementation and organizational performance (Hong et al, 2009). With a sample of 80 ERP adopters and comparable non-adopters for the period 1998 IT capability encompasses various types such as IT infrastructure, human IT resources and IT-enabled intangibles (Bharadwaj, 2000).…”

“…For example, as ERP emerged as an IT trend during the 1990s, many related studies focused on firms that adopted ERP in the 1990s and early 2000s (Hendricks et al, 2007;Hitt et al, 2002;Lim and Lee, 2007;Poston and Grabski, 2001;Shin, 2006). Additionally, previous studies failed to systematically compare the effect of ERP adoption between the treatment group and the control group (Hong et al, 2009;Sung et al, 2011) or ignored the considerable installation period required for ERP implementation (Hitt et al, 2002). (Bharadwaj, 2000;Chae et al, 2014;Santhanam and Hartono, 2003 (Bharadwaj, 2000;Santhanam and Hartono, 2003).…”