Enterprise resource planning systems implementation and firm performance: An empirical study

Adopting an ERP system is a challenge for any firm and the problems associated with it initially often negatively affect the adopting firm’s profitability as measured through a firm’s main financial indicators. Also for a longer period of time after implementation the empirical results on adoption are mixed, although more positive results have been reported in recent years. However, over the many years of implementing ERP systems much knowledge has been gained on how to improve the implementation process and speeding up the realization of the benefits. This research investigates whether Pakistani manufacturing firms profited from this by realizing the financial benefits early on. This is empirically tested by comparing ten financial performance indicators of firms that adopted an ERP system to that of non-adopters between 2002 and 2012. The results show that they benefitted from the start, but not in all areas.