Authors: Fotini Voulgaris; Christos Lemonakis; Manos Papoutsakis
Addresses: School of Management and Economics, Technological Institute of Crete, Agios Nikolaos Branch, P.O. Box 128, 72100 Agios Nikolaos, Greece; Department of Finance and Insurance, Technological Educational Institute of Crete, Agios Nikolaos, Crete, GR-72100, Greece ' Department of Finance and Insurance, Technological Educational Institute of Crete, Agios Nikolaos, Crete, GR-72100, Greece ' Department of Finance and Insurance, University ?f Portsmouth, Agios Nikolaos, Crete, GR-72100, Greece
Abstract: There are contradicting results on the effect of enterprise resource planning (ERP) adoption to the profitability of firms. International evidence suggests that ERP systems are one of the important drivers of a firm's successful performance and competitiveness. The objective of this study is to empirically investigate the impact of ERP systems on firm performance of enterprises operating in Greece under economic crisis conditions. Our sample consists of 88 firms ERP adopters and non-adopters comparing their performance with the use of ROA, ROS and ATO metrics for a period of ten years (2001-2011). The findings suggest that the performance of ERP adopters is superior to that of the non-adopters and that there exists a significant relation between firm size and financial health of ERP adopters with respect to ROA, ROS and ATO.
Keywords: enterprise resource planning; ERP systems; firm performance; productivity paradox; economic crisis; Greece; financial crisis; ROA; ROS; ATO; return on assets; return on investment; return on sales; asset turnover; ERP adoption.
Global Business and Economics Review, 2015 Vol.17 No.1, pp.112 - 129
Available online: 24 Dec 2014 *Full-text access for editors Access for subscribers Purchase this article Comment on this article