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The Influence of ERP Systems Implementation on Accounting, Organizational and Social Improvements: Evidence from Italy and the UK

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Information Systems, Management, Organization and Control

Part of the book series: Lecture Notes in Information Systems and Organisation ((LNISO,volume 6))

Abstract

The aim of this paper is to analyze the influence of Enterprise Resource Planning (ERP) systems implementation on accounting improvements and on organizational, social and governance benefits, and to extend the existing literature on this topic. Literature review highlights that the adoption of Information Technology (IT) can improve financial and non-financial performance ratios of a firm. Despite these considerations, it has not still been paid enough attention to the overall improvements that an ERP implementation can bring about on financial, organizational and social ratios. In particular, little is known about the influence of an ERP adoption on corporate governance and organizational aspects. In this paper, it is carried out an empirical study from a sample of the UK and Italian listed companies, using regression analysis and Chow test. Results show that the implementation of an ERP positively affects some relevant key performance indicators, as structural break analysis highlights.

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Notes

  1. 1.

    The power distance has a score of 42 for Italy and 26 for the UK; the masculinity has a score of 72 for Italy and 68 for the UK; the individualism has a score of 82 for Italy and 98 for the UK. Data available in November 2013 from the Hofstede’s model website.

  2. 2.

    Final number of 40 firms is composed of 4 firms that answer by e-mail and 36 firms with announcements in their annual reports.

  3. 3.

    Each financial variable and its measurement are extracted from Thomson Reuters Datastream.

  4. 4.

    Each non-financial variable and its measurement are extracted from ESG Asset 4 (Thomson Reuters Datastream). Each ratio can take value from 1 to 100.

  5. 5.

    Corporate governance variable and its measurement are extracted from ESG Asset 4 (Thomson Reuters Datastream). The ratio can take value from 1 to 100.

  6. 6.

    Literature agrees that ERP implementation achieves first real benefits from 1 to 3 years, on average [14, 44].

  7. 7.

    Splitdum is the β0 of Chow test regression. T0 means the first year after the ERP implementation, t + 1 means the 2 years after the ERP implementation etc.

  8. 8.

    Sd_time is the β1 of Chow test regression.

  9. 9.

    Structural break in ROE for 3 Italian firms.

  10. 10.

    Structural break in ROI for 2 Italian firms.

  11. 11.

    Structural break in CGSS for 2 Italian firms.

  12. 12.

    Structural break in CFS for 2 Italian firms.

  13. 13.

    Structural break in APE for 2 Italian firms.

  14. 14.

    Structural break in WCTA for 4 Italian firms.

  15. 15.

    Structural break in WCTA for 8 British firms.

  16. 16.

    Structural break in CGSS for 12 British firms.

  17. 17.

    Structural break in APE for 2 British firms.

  18. 18.

    Structural break in CGS for 4 British firms.

  19. 19.

    Structural break in STDI for 6 British firms.

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Author information

Authors and Affiliations

  1. Department of Economics and Management, University of Pisa, Pisa, Italy

    Sara Trucco

  2. Economic and Management Sciences Department, University of Sassari, Sassari, Italy

    Katia Corsi

Authors
  1. Sara Trucco
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  2. Katia Corsi
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Correspondence to Sara Trucco .

Editor information

Editors and Affiliations

  1. University of Messina, Messina, Italy

    Daniela Baglieri

  2. "Parthenope" University of Naples, Naples, Italy

    Concetta Metallo

  3. Department of Business Administration, University of Verona, Verona, Italy

    Cecilia Rossignoli

  4. Department of Economics, Second University of Naples, Capua, Italy

    Mario Pezzillo Iacono

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Trucco, S., Corsi, K. (2014). The Influence of ERP Systems Implementation on Accounting, Organizational and Social Improvements: Evidence from Italy and the UK. In: Baglieri, D., Metallo, C., Rossignoli, C., Pezzillo Iacono, M. (eds) Information Systems, Management, Organization and Control. Lecture Notes in Information Systems and Organisation, vol 6. Springer, Cham. https://doi.org/10.1007/978-3-319-07905-9_8

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