Study on ERP II decisions under asymmetric information: An agency approach

Author

Lina, Wang ; Milis, Koen ; Poelmans, Stephan

Author_Institution

Sch. of Econ. Manage., Liaoning Univ. of Technol., Jinzhou, China

fYear

2009

fDate

9-12 Aug. 2009

Firstpage

1974

Lastpage

1978

Abstract

In this paper, the optimization investment policy decision of an ERP II implementation has been analyzed under different information conditions. ERP II implementing options´ decision-optimizing models were established. In these models, both clients and vendors try to pursue their own benefits. Based upon the principal-agent theory, the models show how a principal can force an agent to pursue his benefits. Finally, a simulation experiment regarding ERP II implementing options was made. The analysis result of ERP II implementing options is verified.

Keywords

decision making; enterprise resource planning; investment; optimisation; ERP II decisions; asymmetric information; clients; decision-optimizing models; enterprise resource planning; financial options; optimization investment policy decision; principal-agent theory; vendors; Automation; Conference management; Contracts; Costs; Enterprise resource planning; Information analysis; Investments; Mechatronics; Supply chains; Technology management; Asymmetry information; ERP II implementing problems; Evaluation level; Implementing control cost; Principal-agent; Solution;

fLanguage

English

Publisher

ieee

Conference_Titel

Mechatronics and Automation, 2009. ICMA 2009. International Conference on

Conference_Location

Changchun

Print_ISBN

978-1-4244-2692-8

Electronic_ISBN

978-1-4244-2693-5

Type

conf

DOI

10.1109/ICMA.2009.5244981

Filename

5244981