A Corporate Governance Perspective on ERP Implementation

International Journal of Public Information System

Posted: 24 Sep 2009 Last revised: 26 Jul 2014

See all articles by Jidong Zhang

Jidong Zhang

Winona State University

Liyan Wang

Peking University - Guanghua School of Management

Date Written: June 23, 2008

Abstract

The paper investigates corporate governance characteristics of the company with the implementation of the ERP system. In fact, the implementation of ERP systems in the enterprise helps the enterprises to establish an information system and the information system could product a lot of information flow in the enterprise. Corresponds to the nature of corporate governance, ERP systems may be related to corporate governance. Based on data of listed companies in Shanghai and Shenzhen stock markets which have implemented ERP system, it is found that a relatively low proportion of independent directors of companies are more willing to implement the ERP system; relatively high degree of concentration of ownership of state-owned companies are more willing to implement the ERP system, relatively small degree of non-state-owned holding companies are more willing to implement the ERP system; state-owned holding company in relation to non-state-owned holding companies are more willing to implement the ERP system. In conclusion, the enterprises which are appraised that corporate governance is relatively poor are more willing to implement the ERP system.

Keywords: ERP, Corporate Governance, Characters of Corporate

JEL Classification: M41, G30

Suggested Citation

Zhang, Jidong and Wang, Liyan, A Corporate Governance Perspective on ERP Implementation (June 23, 2008). International Journal of Public Information System. Available at SSRN: https://ssrn.com/abstract=1477682

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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