Firm and Employee Effects of an Enterprise Information System: Micro-Econometric Evidence

36 Pages Posted: 30 Jul 2010

See all articles by Derek C. Jones

Derek C. Jones

Hamilton College - Economics Department

Panu Kalmi

Aalto University - Department of Economics

Antti Kauhanen

ETLA, Research Institute of the Finnish Economy

Date Written: June 1, 2010

Abstract

We investigate the impact of adopting an enterprise resource planning (ERP) system on performance changes and employee outcomes in a retail chain. We find that: (i) sales and inventory turnover initially drop by 7 % and recover in 6-12 months; (ii) inventory turnover recovers more quickly for establishments that adopt ERP later; (iii) employee outcomes, including increased workload, greater job difficulty and enhanced multitasking, vary significantly over time, though implications for employee welfare are ambiguous.

Keywords: enterprise resource planning, retailing, Finland, IT

JEL Classification: J20, L80, O52

Suggested Citation

Jones, Derek C. and Kalmi, Panu and Kauhanen, Antti, Firm and Employee Effects of an Enterprise Information System: Micro-Econometric Evidence (June 1, 2010). William Davidson Institute Working Paper No. 992. Available at SSRN: https://ssrn.com/abstract=1650129 or http://dx.doi.org/10.2139/ssrn.1650129

Derek C. Jones (Contact Author)

Hamilton College - Economics Department ( email )

198 College Hill Road
Clinton, NY 13323
United States
315-859-4381 (Phone)
315-859-4477 (Fax)

Panu Kalmi

Aalto University - Department of Economics ( email )

PO Box 1210
FI-00101 Helsinki
Finland

Antti Kauhanen

ETLA, Research Institute of the Finnish Economy ( email )

Arkadiankatu 21B
Helsinki, 00100
Finland

HOME PAGE: http://staff.etla.fi/kauhanen/

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