Firm and Employee Effects of an Enterprise Information System: Micro-Econometric Evidence
36 Pages Posted: 30 Jul 2010
Date Written: June 1, 2010
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: Suggested Citation