Abstract
This study aims to investigate the impact of implementation of Enterprise Resource Planning (ERP) system toward  company’s financial performance. The company's financial performance is measured by the ratio of labor productivity (LP), Return on Assets (ROA), Net Profit Margin (NPM), Account Receivable Turnover (ART), and Inventory Turnover (IT). Sample used in this study are 34 public listed companies that have implemented ERP system in the period of 2002-2013. Data were analyzed by comparing the company's financial ratios for 3 years before and after ERP implementation. The results show that productivity, receivables and inventory management are improved after ERP implementation. Unfortunately, the current research fail to show that there is an increase in company’s profitability after the implementation .
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
