The effects of ERP‑implementations on the non‑financial performance of small and medium‑sized enterprises in the Netherlands

Authors

  • Ivo De Loo
  • Jan Bots
  • Edwin Louwrink
  • Dave Meeuwsen
  • Pauline van Moorsel
  • Chantal Rozel

Keywords:

: ERP systems, organizational performance, organizational benefits, non-financial performance, SME, surveys

Abstract

Abstract: In this paper we try to assess the impact of ERP‑implementations on the development of non‑financial organizational performance, as described by Shang and Seddon (2002) and Eckartz et al. (2009). We assess this impact for Dutch small and medium‑sized enterprises, using a small but unique dataset. Several aspects of the performance of organizations are compared before and after the introduction of an ERP‑system, taking into account a three‑year period, and controlling for several influential factors (like organizational size, financial health and sectoral differences). We conclude that by and large, organizational performance increased significantly more for organizations that implemented an ERP‑system in the last three years than for organizations that did not implement such a system. We also conclude that organizations that implemented an ERP‑system at most three years ago did not have significantly lower non‑financial performance than organizations that did not implement such a system. Additional analyses suggest that we would oversell our results if we would claim that ERP‑systems are the main or sole source of the effects found. Nevertheless, although limited to Dutch SMEs, our results contradict some of the views expressed in the ERP‑literature.

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Published

1 Sep 2013

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Section

Articles