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

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  • Derek C. Jones
  • Panu Kalmi
  • Antti Kauhanen

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.

Suggested Citation

  • Derek C. Jones & Panu Kalmi & Antti Kauhanen, 2010. "Firm and Employee Effects of an Enterprise Information System: Micro-econometric Evidence," William Davidson Institute Working Papers Series wp992, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2010-992
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    References listed on IDEAS

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    1. Jeanne W. Ross & Michael R. Vitale, 2000. "The ERP Revolution: Surviving vs. Thriving," Information Systems Frontiers, Springer, vol. 2(2), pages 233-241, August.
    2. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 339-376.
    3. Chang, Man-Kit & Cheung, Waiman & Cheng, Chun-Hung & Yeung, Jeff H.Y., 2008. "Understanding ERP system adoption from the user's perspective," International Journal of Production Economics, Elsevier, vol. 113(2), pages 928-942, June.
    4. Hansen, Christian B., 2007. "Asymptotic properties of a robust variance matrix estimator for panel data when T is large," Journal of Econometrics, Elsevier, vol. 141(2), pages 597-620, December.
    5. Motwani, Jaideep & Mirchandani, Dinesh & Madan, Manu & Gunasekaran, A., 2002. "Successful implementation of ERP projects: Evidence from two case studies," International Journal of Production Economics, Elsevier, vol. 75(1-2), pages 83-96, January.
    6. Botta-Genoulaz, Valerie & Millet, Pierre-Alain, 2006. "An investigation into the use of ERP systems in the service sector," International Journal of Production Economics, Elsevier, vol. 99(1-2), pages 202-221, February.
    7. Anitesh Barua & Charles H. Kriebel & Tridas Mukhopadhyay, 1995. "Information Technologies and Business Value: An Analytic and Empirical Investigation," Information Systems Research, INFORMS, vol. 6(1), pages 3-23, March.
    8. Plaza, Malgorzata & Rohlf, Katrin, 2008. "Learning and performance in ERP implementation projects: A learning-curve model for analyzing and managing consulting costs," International Journal of Production Economics, Elsevier, vol. 115(1), pages 72-85, September.
    9. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    10. Jaideep Motwani & Asli Yagmur Akbulut & Zubair M. Mohamed & Charles L. Greene, 2008. "Organisational factors for successful implementation of ERP systems," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 3(2), pages 158-182.
    11. Valerie Botta-Genoulaz & Pierre-Alain Millet, 2006. "An investigation into the use of ERP systems in the service sector," Post-Print hal-00266991, HAL.
    12. Maryellen R. Kelley, 1994. "Productivity and Information Technology: The Elusive Connection," Management Science, INFORMS, vol. 40(11), pages 1406-1425, November.
    13. Tchokogue, Andre & Bareil, Celine & Duguay, Claude R., 2005. "Key lessons from the implementation of an ERP at Pratt & Whitney Canada," International Journal of Production Economics, Elsevier, vol. 95(2), pages 151-163, February.
    14. David H. Autor & Frank Levy & Richard J. Murnane, 2002. "Upstairs, Downstairs: Computers and Skills on Two Floors of a Large Bank," ILR Review, Cornell University, ILR School, vol. 55(3), pages 432-447, April.
    15. Valerie Botta-Genoulaz & Pierre-Alain Millet & Bernard Grabot, 2005. "A survey on the recent research literature on ERP systems," Post-Print hal-00392165, HAL.
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    Cited by:

    1. Ram, Jiwat & Corkindale, David & Wu, Ming-Lu, 2013. "Implementation critical success factors (CSFs) for ERP: Do they contribute to implementation success and post-implementation performance?," International Journal of Production Economics, Elsevier, vol. 144(1), pages 157-174.
    2. Bartholomew Watson, 2011. "Barcode Empires: Politics, Digital Technology, and Comparative Retail Firm Strategies," Journal of Industry, Competition and Trade, Springer, vol. 11(3), pages 309-324, September.
    3. Sáenz-Royo, Carlos & Salas-Fumás, Vicente, 2014. "Long- and short-term efficiency in an automobile factory: An econometric case study," International Journal of Production Economics, Elsevier, vol. 156(C), pages 98-107.

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    Keywords

    enterprise resource planning; retailing; Finland; IT;
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