Authors: Javier De Andrés; Pedro Lorca; José Emilio Labra
Addresses: Department of Accounting, University of Oviedo, Avenida del Cristo, s/n, 33006 – Oviedo, Spain. ' Department of Accounting, University of Oviedo, Avenida del Cristo, s/n, 33006 – Oviedo, Spain. ' Department of Computer Science, University of Oviedo, C/ Valdés Salas, s/n, 33071, Oviedo, Spain
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.
Keywords: enterprise resource planning; systems implementation; ERP; productivity paradox; profitability; innovation diffusion; accounting ratios; Spain; large companies; financial statements; significant decrements; profit margins; operational expenses; manipulated earnings; performance deterioration; technology management.
International Journal of Technology Management, 2012 Vol.59 No.1/2, pp.22 - 44
Available online: 13 Jun 2012 *Full-text access for editors Access for subscribers Purchase this article Comment on this article