Technical Efficiency Analysis of Post Implementation Investment in ERP Systems

• Main Authors: Ko-Yuan Lai, 賴科源
• Other Authors: none
• Format: Others
• Language: en_US
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/48470426027392525935

碩士 === 國立中央大學 === 企業管理研究所 === 91 === i Abstract The management of information technology (IT) has become one of the key factors that managers need to address with great care especially in today’s global environment. Enterprises worldwide race to implement Enterprise Resource Planning (ERP) systems to streamline business processes and increase flexibility in the last 10 years (O’Leary, 2000). Usually, management may want to assess the business benefits or performances of ERP systems (Shang and Seddon, 2000). In this paper, we try to analysis the relationship of ERP continuous investment and technical efficiency through two stages. In the first stage, we will utilize one output-variables, gross sales, and two input-variables, capital stock and labor expense, to measure technical efficiency scores in BCC model in order to identify the best benchmark performers in our sample firms who have implemented ERP. In the second stage, we will utilize the Tobit regression to investigate the relationship between efficiency scores and ERP continuous investment, which the concept is based on total costing ownership (TCO) of technology assets, include percentage of IT budget spent on average annual ERP maintaining expense, percentage of IT budget spent on average annual personal salary of ERP maintaining staff and percentage of IT budget spent on average annual training expense of ERP staff. On the other hand, we classify our samples by system vendors to global and local brand to analyze the cultural impact of ERP system in technical efficiency. The result shows that: 1.ERP maintain expenses identified as debugging and system update whether on line or on the scene, has a favorable impact on firm’s technical efficiency. 2. ERP personnel salary identified as back-filled staff’s salary and maintains staff’s salary that has a favorable impact on firm’s technical efficiency. 3. ERP staff training expenses identified as the cost to provide training to ERP specialists and end users, has no significant impact on firm’s technical efficiency. However, we have discussed the no significant reason with ERP consultant, the reason that the firms education system is mentoring but not consultant no matter old or new employee. 4. The local brand of ERP systems shows higher technical efficiency in our samples in Taiwan. The implies that a one-size-fits-all or one-business-model- fits-all approach is unlikely to be successful. As the statistic evidence, Developers and consultants need to adapt their products and services for different cultural markets.