Connection between Firm's Performance and ERP Implementation - Based on Data of China Listed Companies

TOP Journal, Forthcoming

12 Pages Posted: 20 Aug 2007 Last revised: 27 Jan 2010

See all articles by Jidong Zhang

Jidong Zhang

Winona State University

Liyan Wang

Peking University - Guanghua School of Management

Abstract

This article investigates the co-relationship of operating performance with implementation of ERP system in listed companies. The descriptive statistics reveals that the operating performance of ERP companies in 2003, that ROS, ROI, ROE and ROA regarded as companies' operating performance index are significantly higher than those of non-ERP companies. Furthermore, we find, by one-tailed test, that the operating performance of ERP companies is significantly higher than before. In addition, by testing the sample in terms of sorts, the findings show operating performance of ERP companies with smaller firm size are significantly higher than non-ERP companies with smaller firm size, but big size companies do not appear the case.

Furthermore, we also find that the operating performances of ERP non-manufacturing companies are slightly higher than non-ERP non-manufacturing companies. On the other hand, the operating performances of ERP manufacturing companies have no significant difference with non-ERP manufacturing companies.

Note: Downloadable document is in Chinese.

Keywords: ERP implementation, firm's performance

JEL Classification: M40, M41, M46, M47, D82, G34

Suggested Citation

Zhang, Jidong and Wang, Liyan, Connection between Firm's Performance and ERP Implementation - Based on Data of China Listed Companies. TOP Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1007729

Jidong Zhang (Contact Author)

Winona State University ( email )

Winona, MN 55987
United States

Liyan Wang

Peking University - Guanghua School of Management ( email )

Peking University
Beijing, Beijing 100871
China

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