Hellenic Open University Conferences, International Conference on Business & Economics of the Hellenic Open University 2015

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Effects on Firm Performance after ERP Implementation in terms of Financial and Non-Financial Measures
Alexandra Kanellou, Charalambos Spathis

Building: Titania
Room: Platon
Date: 2015-02-07 02:00 PM – 03:45 PM
Last modified: 2015-01-27



Companies implement ERP systems in order to improve their performance, in terms of financial and non-financial measures. Previous research reveals mixed results when it comes to the effect of financial performance after ERP adoption in terms of financial ratios. This is known as the “productivity paradox”. The present study tries to shed light to this paradox, using accounting measures of performance to test specific research hypotheses. We re-examine most of financial ratios used by researchers in the past and how they are affected before and after ERP implementation. We also try to combine other ERP benefits (such as organizational, operational and managerial) with financial measures and see the relationship and interaction between them, after an ERP implementation. Results show statistically significant differences in firm performance before and after ERP implementation in terms of sales growth rate, net profit margin, ROA, ROS, total assets turnover and account receivables turnover.


ERP, financial performance, financial ratios/financial measures, accounting measures, non-financial measures, ERP benefits, accounting benefits