Impact of ERP system on productivity improvement: some empirical findings

The aim of this study is to investigate whether enterprise resource planning (ERP) investment brought productivity improvement to the organization as promised by the system provider. We used three productivity indicators adopted from the Malaysia Productivity Corporation.These indicators are competi...

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Main Authors: Zainol, Zaini, Abu Bakar , Zaitun
Format: Article
Language:English
English
Published: Universiti Teknologi MARA (UiTM) 2011
Subjects:
Online Access:http://irep.iium.edu.my/525/
http://irep.iium.edu.my/525/1/BMQR_Rev3RevisedpaperPROD.pdf
http://irep.iium.edu.my/525/4/Zaini_Zainol_BMQR_2%283%29_70-78_2011.pdf
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author Zainol, Zaini
Abu Bakar , Zaitun
author_facet Zainol, Zaini
Abu Bakar , Zaitun
author_sort Zainol, Zaini
building IIUM Repository
collection Online Access
description The aim of this study is to investigate whether enterprise resource planning (ERP) investment brought productivity improvement to the organization as promised by the system provider. We used three productivity indicators adopted from the Malaysia Productivity Corporation.These indicators are competitiveness indicator,labour productivity indicator and capital productivity indicator. A total of four manufacturing companies were selected. These companies have been using ERP based systems for a minimum three years. Our findings showed mixed results. Of the three indicators, the labour productivity indicator had shown positive contribution whereas the remaining two indicators i.e. competitiveness and capital productivity had resulted in negative feedback. Generally, these indicators seem to show that the increase in labour cost was greater than the increase in the value-added created as a result of adopting an ERP system.
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institution International Islamic University Malaysia
institution_category Local University
language English
English
last_indexed 2025-11-14T14:18:39Z
publishDate 2011
publisher Universiti Teknologi MARA (UiTM)
recordtype eprints
repository_type Digital Repository
spelling iium-5252014-06-04T17:07:54Z http://irep.iium.edu.my/525/ Impact of ERP system on productivity improvement: some empirical findings Zainol, Zaini Abu Bakar , Zaitun HF5601 Accounting. Bookkeeping The aim of this study is to investigate whether enterprise resource planning (ERP) investment brought productivity improvement to the organization as promised by the system provider. We used three productivity indicators adopted from the Malaysia Productivity Corporation.These indicators are competitiveness indicator,labour productivity indicator and capital productivity indicator. A total of four manufacturing companies were selected. These companies have been using ERP based systems for a minimum three years. Our findings showed mixed results. Of the three indicators, the labour productivity indicator had shown positive contribution whereas the remaining two indicators i.e. competitiveness and capital productivity had resulted in negative feedback. Generally, these indicators seem to show that the increase in labour cost was greater than the increase in the value-added created as a result of adopting an ERP system. Universiti Teknologi MARA (UiTM) 2011 Article PeerReviewed application/pdf en http://irep.iium.edu.my/525/1/BMQR_Rev3RevisedpaperPROD.pdf application/pdf en http://irep.iium.edu.my/525/4/Zaini_Zainol_BMQR_2%283%29_70-78_2011.pdf Zainol, Zaini and Abu Bakar , Zaitun (2011) Impact of ERP system on productivity improvement: some empirical findings. Business Management & Quarterly Review, 2 (3). pp. 70-78. ISSN 2180-2777 http://ibe.uitm.edu.my/journal/55-business-a-management-quarterly-review.html
spellingShingle HF5601 Accounting. Bookkeeping
Zainol, Zaini
Abu Bakar , Zaitun
Impact of ERP system on productivity improvement: some empirical findings
title Impact of ERP system on productivity improvement: some empirical findings
title_full Impact of ERP system on productivity improvement: some empirical findings
title_fullStr Impact of ERP system on productivity improvement: some empirical findings
title_full_unstemmed Impact of ERP system on productivity improvement: some empirical findings
title_short Impact of ERP system on productivity improvement: some empirical findings
title_sort impact of erp system on productivity improvement: some empirical findings
topic HF5601 Accounting. Bookkeeping
url http://irep.iium.edu.my/525/
http://irep.iium.edu.my/525/
http://irep.iium.edu.my/525/1/BMQR_Rev3RevisedpaperPROD.pdf
http://irep.iium.edu.my/525/4/Zaini_Zainol_BMQR_2%283%29_70-78_2011.pdf