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ERIC Number: ED567522
Record Type: Non-Journal
Publication Date: 2014
Pages: 149
Abstractor: As Provided
ISBN: 978-1-3038-3100-3
The Impact of Enterprise Resource Planning Systems on Small and Medium Enterprises
Buleje, Miguel A.
ProQuest LLC, Ph.D. Dissertation, Nova Southeastern University
Enterprise resource planning (ERP) systems are considered the price of entry in today's business environment, and the number of small and medium-sized enterprises (SME) retiring legacy systems in favor of ERP systems is increasing exponentially. However, there is a lack of knowledge and awareness of ERP systems and their potential benefit and effect on performance, and overall value to SMEs. While ERP adoption costs and potential benefits are high, it is not apparent whether the end result will translate into higher productivity for SMEs. The goal of this study is to evaluate the benefits that accrue to a firm on adoption of an ERP system. In the context of SME, a production function approach is used to assess benefits over short and long term. In addition to the production function approach, a variety of related methods such as those based on stock market valuation and Tobin's Q are examined. Data were collected using the well-known CRSP datasets for SMEs. Analysis of data suggests that ERP implementation has no effect on firm's performance as measured by profit margins, Tobin's Q ratio and Labor productivity. In fact, ERP investments do not yield noticeable improvements on the performance measures even four years after implementation. Weaknesses in data suggest that the conclusion may be seen as tentative. The results of this research study, added value to the academic knowledge base by helping to understand the effects ERPs have on SMEs overall performance. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page:]
ProQuest LLC. 789 East Eisenhower Parkway, P.O. Box 1346, Ann Arbor, MI 48106. Tel: 800-521-0600; Web site:
Publication Type: Dissertations/Theses - Doctoral Dissertations
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A