The effects of ERP implementations on the profitability of big firms: the case of Spain
by Javier De Andrés; Pedro Lorca; José Emilio Labra
International Journal of Technology Management (IJTM), Vol. 59, No. 1/2, 2012

Abstract: This paper aims to analyse the incidence of the implementation of ERP systems on the profitability of the biggest Spanish firms. To reach this objective, we sent a questionnaire to a sample of companies. We also gathered the financial statements of these companies. The main results indicate a significant decrement in the profitability of the companies that implemented an ERP system. The reason for this decrement was a reduction in the profit margin, which was caused by an increase in the operational expenses. The results also suggest that adopting firms manipulated earnings to hide the deterioration of their performance. The profitability of non-ERP firms remained unchanged, so the productivity paradox assumption is not supported.

Online publication date: Wed, 13-Jun-2012

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology Management (IJTM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com