Main Article Content
Abstract
This study aims to investigate the impact of implementation of Enterprise Resource Planning (ERP) system toward  company’s financial performance. The company's financial performance is measured by the ratio of labor productivity (LP), Return on Assets (ROA), Net Profit Margin (NPM), Account Receivable Turnover (ART), and Inventory Turnover (IT). Sample used in this study are 34 public listed companies that have implemented ERP system in the period of 2002-2013. Data were analyzed by comparing the company's financial ratios for 3 years before and after ERP implementation. The results show that productivity, receivables and inventory management are improved after ERP implementation. Unfortunately, the current research fail to show that there is an increase in company’s profitability after the implementation.
Keywords
Article Details
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
References
- Achjari, D., dan A. E. Wahyuningtyas. 2014. Information technology investment announcements and firms’ value: the case of Indonesian firms in the financial and non-financial sectors. Asian Journal of Business and Accounting 7 (2): 95–116.
- Anderson, M., R. D. Banker, N. M. Menon, dan J. A. Romero. 2011. Implementing enterprise resource planning systems: organizational performance and the duration of the implementation. Information Technology and Management 12 (3): 197–212.
- Brealey, R., S. Myers, dan F. Allen. 2017. Principles of corporate finance. Edisi ke-12. McGraw-Hill Education.
- Elragal, A. A., dan A. M. Al-Serafi. 2011. The effect of ERP system implementation on business performance: an exploratory case-study. Communications of the IBIMA, 1–20.
References
Achjari, D., dan A. E. Wahyuningtyas. 2014. Information technology investment announcements and firms’ value: the case of Indonesian firms in the financial and non-financial sectors. Asian Journal of Business and Accounting 7 (2): 95–116.
Anderson, M., R. D. Banker, N. M. Menon, dan J. A. Romero. 2011. Implementing enterprise resource planning systems: organizational performance and the duration of the implementation. Information Technology and Management 12 (3): 197–212.
Brealey, R., S. Myers, dan F. Allen. 2017. Principles of corporate finance. Edisi ke-12. McGraw-Hill Education.
Elragal, A. A., dan A. M. Al-Serafi. 2011. The effect of ERP system implementation on business performance: an exploratory case-study. Communications of the IBIMA, 1–20.