A Corporate Governance Perspective on ERP Implementation
International Journal of Public Information System
Posted: 24 Sep 2009 Last revised: 26 Jul 2014
Date Written: June 23, 2008
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: Suggested Citation