Article Critique : Firm And Employee Effects Of An Enterprise Information

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Article Critique: “Firm and Employee Effects of an Enterprise Information System: Micro-Econometric Evidence” The Enterprise Resource Planning (ERP) systems are software packages that are designed to offer integration of all of an organization’s business functional areas of management. The ERP systems allow organizations, large and small to standardize systems across multiple divisions to provide organization wide data accessibility (Gelinas, Dull, & Wheeler, 2015). “Firm and employee Effects of an Enterprise Resource Planning (ERP) System: Micro-Econometric Evidence” by Jones, Kalmi, and Kauhanen (2011) is a study conducted to examine the impact of an ERP system in a retail chain and find parallels between firm and employee outcomes.…show more content…
The second set derives from concern over the quantity of data to measure and the methods to use for measurement. Hypotheses The article uses diverse types of data for a retail chain and studies the impact of ERP adoption or implementation on firm and employees outcomes. The key data used were monthly financial and performance information over six years to estimate the time profile of the impact on performance. The study resulted in three hypotheses (Jones, Kalmi, & Kauhanen 2011): First hypothesis. The initial impact of ERP implantation is negative and recovery will take several months when the ERP goes live (the shakedown phase). The study established that sales and inventory turnover did initially drop and recovered within 6-12 months. The study also demonstrated that operational measures may show results earlier than financial measures, and the drop in performance may last a long time. Second hypothesis. This hypothesis in on firm outcomes and states that those who implement the ERP later on learn from the ones who implemented early and experience more favorable outcomes. They experience benefits in terms of inventory turnover more quickly. However there is not much impact on sales and initial drop in performance. Third Hypothesis. More extensive initial training will result in better firm
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