Abstract
The purpose of this paper is to study the impact of Chinese enterprises’ ERP investment and implementation on stock performance and financial performance and the differences between Chinese enterprises and American enterprises’ ERP investment as well as the differences between the smaller firms and larger firms’ ERP investment. The result indicates the performance of Chinese companies investing in ERP is better than American companies in both stock and profitability financial performance. When it comes to the different size firms, the result shows that smaller firms get more return on the stock market than larger firms after investing in ERP, while larger firms get more return on financial profitability than smaller firms. After enterprises invest in ERP, we find the increase of financial cost only in the implementation period for the full and smaller size sample, but not in the case of larger size firm sample.
Similar content being viewed by others
References
Acar MF, Tarim M et al (2017) Knowledge management and ERP: complementary or contradictory? Int J Inf Manag 37(6):703–712
Akkermans HA, Bogerd P et al (2003) The impact of ERP on supply chain management: exploratory findings from a European Delphi study. Eur J Operat Res 146(2):284–301
Amrani RE, Rowe F et al (2010) The effects of enterprise resource planning implementation strategy on cross-functionality. Inf Syst J 16(1):79–104
Aubert B, Patry M et al (2004) Information technology and organizational transformation
Avison D, Malaurent J (2007) Impact of cultural differences: a case study of ERP introduction in China. Int J Inf Manag 27(5):368–374
Bailey L, Seymour LF et al (2017) Impact of ERP implementation on the quality of work life of users: a sub-Saharan African study. Afr J Inf Syst 9(33):192–212
Barber BM, Lyon JD (1996) Detecting abnormal operating performance: the empirical power and specification of test statistics. J Financ Econ 41(3):359–399
Beccalli E (2007) Does IT investment improve bank performance? Evidence from Europe. J Bank Finance 31(7):2205–2230
Bose I, Pal R et al (2008) ERP and SCM systems integration: the case of a valve manufacturer in China. Inf Manag 45(4):233–241
Carta D (2009) The Impact of introducing an ERP system on organizational processes and individual employees of an italian regional government organization. Public Manag Rev 11(6):791–809
Chang YW, Hsu PY (2017) An empirical investigation of organizations switching intention to cloud enterprise resource planning: a cost-benefit perspective. Information Development (2): 026666691774328
Choi TM, Chow PS et al (2013) Implementation of fashion ERP systems in China: case study of a fashion brand, review and future challenges. Int J Prod Econ 146(1):70–81
Gao L, Liu L et al (2017) Factors affecting individual level ERP assimilation in a social network perspective: a multi-case stuty. J Global Inf Manag 25(3):21–39
Ha YM, Ahn HJ (2014) Factors affecting the performance of Enterprise Resource Planning (ERP) systems in the post-implementation stage. Behav Inform Technol 33(10):1065–1081
Häkkinen L, Hilmola OP (2008) Life after ERP implementation: Long-term development of user perceptions of system success in an after-sales environment. J Enterp Inform Manag 21(3):285–310
Hart CA, Snaddon DR (2014) The organisational performance impact of ERP systems on selected companies. South Afr J Ind Eng 25(1):14–28
He X (2004) The ERP challenge in China: a resource-based perspective. Inf Syst J 14(2):153–167
Hendricks KB, Singhal VR et al (2007) The impact of enterprise systems on corporate performance: a study of ERP, SCM, and CRM system implementations. J Operat Manag 25(1):65–82
Hitt LM, Wu DJ et al (2002) ERP investment: business impact and productivity measures. J Manag Inf Syst 19(1):71–98
Holsapple CW, Sena MP (2005) ERP plans and decision-support benefits. Decis Support Syst 38(4):575–590
Huang T, Yasuda K (2016) Comprehensive review of literature survey articles on ERP. Business Process Manag J 22(1):2–32
Hwang D, Min H (2015) Identifying the drivers of enterprise resource planning and assessing its impacts on supply chain performances. Ind Manag Data Syst 115(3):541–569
Im KS, Dow KE et al (2001) Research report: a reexamination of IT investment and the market value of the firm—an event study methodology. Inf Syst Res 12(1):103–117
Kai R (2002) Implementing ERP systems in China. In: Hawaii international Conference on System Sciences. IEEE
Kanellou A, Spathis C (2013) Accounting benefits and satisfaction in an ERP environment. Int J Account Inf Syst 14(3):209–234
Kappelman L, Johnson V et al (2018) A study of information systems issues, practices, and leadership in Europe. Eur J Inf Syst 1:1–17
Kofahi I, Alryalat H (2017) Enterprise resource planning (ERP) implementation approaches and the performance of procure-to-pay business processes (field study in companies that implement oracle ERP in Jordan). Int J Inf Technol Project Manag 8(1):55–71
Kushwaha P, Yadav P et al (2018) Impact of enterprise resource planning on human resource management in automobile sector: statistical analysis. J Stat Manag Syst 21(4):601–615
Lai VS, Lai F et al (2016) Technology evaluation and imitation: do they have differential or dichotomous effects on ERP adoption and assimilation in China? J Manag Inf Syst 33(4):1209–1251
Law CCH, Chen CC, Wu BJP (2010) Managing the full ERP life-cycle: Considerations of maintenance and support requirements and IT governance practice as integral elements of the formula for successful ERP adoption. Comput Ind 61(3):297–308
Lopez Vargas C, Lopez Garcia J (2017) Evaluating the impact of ERP systems on SC performance with ISM. WPOM-Working Papers On Operations Management 8 (SI): 101–103
Martinsons MG (2005) Transforming China. Commun ACM 48(4):44–48
Mcafee A (2010) The impact of enterprise information technology adoption on operational performance: an empirical investigation. Prod Oper Manag 11(1):33–53
Motwani J, Mirchandani D, Madan M, Gunasekaran A (2002) Successful implementation of ERP projects: Evidence from two case studies. Int J Prod Econ 75(1):83–96
Muscatello JR, Parente DH et al (2016) The impact of ERP alignment on logistics costs: a work system theoretical approach. Int J Enterp Inf Syst 12(3):1–17
Nafeeseh RA, Al-Mudimigh AS (2011) Justifying ERP investment: the role and impacts of business case a literature survey. Int J Comput Sci Netw Secur 11(1):185–193
Oghazi P, Fakhrai Rad F et al (2018) RFID and ERP systems in supply chain management. Eur J Manag Business Econ 27(2):171–182
Park J, Park J (2015) Enterprise resource planning and efficiency evidence from the Korean property/casualty insurance companies. Manag Finance 41(4):405–415
Ranganathan C, Brown CV (2006) ERP investments and the market value of firms: toward an understanding of influential ERP project variables. Inf Syst Res 17(2):145–161
Rom A, Rohde C (2006) Enterprise resource planning systems, strategic enterprise management systems and management accounting. J Enterp Inf Manag 19(1):50–66
Shao Z, Feng Y et al (2017) Impact of top management leadership styles on ERP assimilation and the role of organizational learning. Inf Manag 54(7):902–919
Shehab EM, Sharp MW et al (2004) Enterprise resource planning: an integrative review. Business Process Manag J 10(4):359–386
Somers TM, Nelson KG (2004) A taxonomy of players and activities across the ERP project life cycle. Inf Manag 41(3):257–278
Spathis C (2006) Enterprise systems implementation and accounting benefits. J Enterp Inf Manag 19(1):67–82
Su YF, Yang C (2010) A structural equation model for analyzing the impact of ERP on SCM. Expert Syst Appl 37(1):456–469
Sudzina F, Pucihar A et al (2011) Impact of ERP systems implementation: a case of slovenian companies. In: M. Ferjan, M. K. Borstnar, M. Maric and A. Pucihar. Kranj, Univ Maribor, pp 96–104
Sumner M (2000) Risk factors in enterprise-wide/ERP projects. J Inf Technol 15(4):317–327
Vemuri VK, Palvia SC (2008) Improvement in operational efficiency due to ERP systems implementation: truth or myth? Inf Resour Manag J 19(2):18–36
Zhe Z, Lee MKO et al (2005) A framework of ERP systems implementation success in China: an empirical study. Int J Prod Econ 98(1):56–80
Acknowledgements
This work was supported by the National Natural Science Foundation of China under Grant No.71531013; 71490720; 71401047.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Yan, X., Yu, G. & Ji, P. ERP investment and implementation between China and US: difference and enlightenment. Inf Technol Manag 20, 175–185 (2019). https://doi.org/10.1007/s10799-019-00301-4
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10799-019-00301-4