Investment in Enterprise Resource Planning: Business Impact and Productivity Measures

Hitt, Lorin M.; Wu, Dazhong; Zhou, Xiaoge

doi:10.1080/07421222.2002.11045716

Cited by 594 publications

(467 citation statements)

References 23 publications

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“…However, the majority of these studies are interviews, case studies or a collection of case studies and industry surveys mainly for US data (see the literature reviews provided by Gattiker and Goodhue, 2002;Hitt, Wu and Zhou, 2002). None of these articles empirically tests the impact of ERP systems using a representative dataset.…”

Section: Productivity Effects Of Erp Systemsmentioning

confidence: 99%

“…Based on a survey of 101 US implementers of SAP R/3 packages, the author finds that participating companies reported substantial performance improvement in several areas as a result of their ERP implementation, including their ability to provide information to customers, cycle times, and on-time completion rates. Hitt, Wu and Zhou (2002) investigate the relationship between adopting ERP systems and firm performance. The authors use data on firms that have purchased licenses for the SAP R/3 system from which they confirm some important conjectures about the business value of ERP system implementation.…”

Section: Productivity Effects Of Erp Systemsmentioning

confidence: 99%

See 1 more Smart Citation

ICT-linked firm reorganisation and productivity gains

Falk¹

2005

Technovation

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Abstract:In the EU, most large firms use e-business applications, such as enterprise resource planning and online procurement. Based on e-business watch data for EU-4 (Germany, France, Italy and the United Kingdom) we find that the actual use of enterprise resource planning and online procurement is positively correlated with labour productivity growth. Furthermore, we find that certain e-business applications, such as Knowledge Management Solution (KMS) systems and CRM systems are significantly positively correlated to either sectoral skill intensity or information technology intensity.The results from the empirical analysis based on Community Innovation survey (CIS 3) data confirm the hypothesis that the introduction of business practices and new organisational practices are highly correlated. Furthermore, there is a significantly positive relationship between labour productivity growth and the percentage of enterprises with new or significantly changed organisational structures based on industry data for some EU countries.JEL: M20, L86, O31, O32

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Section: Productivity Effects Of Erp Systemsmentioning

confidence: 99%

Section: Productivity Effects Of Erp Systemsmentioning

confidence: 99%

ICT-linked firm reorganisation and productivity gains

Falk¹

2005

Technovation

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“…In particular, we lack large-scale empirical evidence on complementarities between specific organizational practices and HCM or ERP investment in general. Hitt, Wu and Zhou (2002) provide one of the first large-scale statistical analyses of the productivity and performance impact of ERP adoption. By examining 350 publicly traded firms from 1986 to 1998, they find that ERP implementation is associated with positive productivity and performance gains.…”

Section: Human Capital Management Softwarementioning

confidence: 99%

“…These "process-enabling technologies" represent firm-wide suites of business software and hardware designed to generate productivity and performance by supporting specific business processes (Hitt, Wu, and Zhou 2002, McAfee 2003, Aral, Brynjolfsson and Wu 2006.…”

Section: Introductionmentioning

confidence: 99%

Three-Way Complementarities: Performance Pay, Human Resource Analytics, and Information Technology

2012

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We test for three-way complementarities among information technology (IT), performance pay, and HR analytics practices. We develop a principal-agent model examining how these practices work together as an incentive system that produces a larger productivity premium when the practices are implemented in concert rather than separately. We assess our model by combining fine-grained data on Human Capital Management (HCM) software adoption over 11 years with detailed survey data on incentive systems and HR analytics practices for 189 firms. We find that the adoption of HCM software is greatest in firms that have also adopted performance pay and HR analytics practices. Furthermore, HCM adoption is associated with a large productivity premium when it is implemented as a system of organizational incentives, but has less benefit when adopted in isolation. The system of three-way complements produces disproportionately greater benefits than pairwise interactions, highlighting the importance of including all three complements. Productivity increases significantly when the HCM systems "go live" but not when they are purchased, which can be years earlier. This helps rule out reverse causality as an explanation for our findings.

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“…However, several researchers find that the effect of IT on firm performance may be either mixed or subject to contingencies (Aral and Weill 2007;Xue et al 2012). Other studies document that IT investments are risky and not cost effective (e.g., Hitt et al 2002;Dewan and Ren 2011). In general, prior studies primarily concentrate on the internal risk effects of IT on companies themselves.…”

Section: Introductionmentioning

confidence: 99%

The Association between Information Technology Investments and Audit Risk

Han

Rezaee

Xue

et al. 2015

Journal of Information Systems

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SUMMARY:The advances in information technology (IT) have changed the way companies conduct business in using electronic commerce strategies, preparing financial reports and having their financial statements audited. Therefore, client firms' IT investments could have effects on audit risk. On one hand, the IT complexity creates challenges for auditors in auditing the effectiveness of internal control and detecting accounting irregularities. On the other hand, IT decreases audit risk by improving operation and internal control effectiveness which may decrease inherent and internal control risk. Yet, the relationship between clients' IT asset portfolios and audit risk remains an empirical question. Using proprietary IT data of US firms from 2000 to 2009, we find that IT investments are positively related to audit fees and abnormal audit fees, and negatively related to the probability of issuance of a going-concern audit opinion.Furthermore, we find that audit tenure moderates the above relationship due to the learning effect.

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Investment in Enterprise Resource Planning: Business Impact and Productivity Measures

Cited by 594 publications

References 23 publications

ICT-linked firm reorganisation and productivity gains

ICT-linked firm reorganisation and productivity gains

Three-Way Complementarities: Performance Pay, Human Resource Analytics, and Information Technology

The Association between Information Technology Investments and Audit Risk

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