The Impact of Enterprise Resource Planning Systems on the Efficiency of Taiwanese Firms

Author

Tsai, Bi-Huei

Author_Institution

Dept. of Manage. Sci., Nat. Chiao Tung Univ., Hsinchu

fYear

2008

fDate

9-12 Dec. 2008

Firstpage

1441

Lastpage

1446

Abstract

This paper seeks to ascertain how the turnover factors, vender features and industrial characteristics improve the firm efficiency under enterprise resources planning (ERP) systems. A comparison of DEA efficiency score is conducted between pre-ERP and post-ERP phases based on 59 Taiwanese firms which implement ERP from 1998 to 2003. ERP adopters are found to reduce their turnover days of account receivables or inventories, and prolong turnover days of unpaid accounts permitted by their suppliers, thus causing a substantial efficiency elevation after ERP implementation. In addition, this article captures the greater efficiency advance based upon leading vendor packages. This suggests that the rapid efficiency growth under ERP formula is closely connected with the consulting supports of leading vendors. Furthermore, the electronics industry performs better than non-electronics industry after ERP installation, which implies "electronics firms\´ more reliance on such ERP mechanisms" to effectively integrate resources, and as a result enhance performance.

Keywords

accounts data processing; data envelopment analysis; enterprise resource planning; inventory management; DEA efficiency score; ERP implementation; ERP installation; Taiwanese firms; account receivables; electronics firms; enterprise resource planning systems; firm efficiency; industrial characteristics; inventory; leading vendors; non-electronics industry; turnover days; turnover factors; unpaid accounts; vender features; vendor packages; Costs; Data envelopment analysis; Economic indicators; Electronics industry; Enterprise resource planning; Information technology; Inventory management; Investments; Marketing and sales; Subcontracting; DEA; Data envelopment; ERP; Efficiency; Enterprise resource planning;

fLanguage

English

Publisher

ieee

Conference_Titel

Asia-Pacific Services Computing Conference, 2008. APSCC '08. IEEE

Conference_Location

Yilan

Print_ISBN

978-0-7695-3473-2

Electronic_ISBN

978-0-7695-3473-2

Type

conf

DOI

10.1109/APSCC.2008.251

Filename

4780882