ERP Productivity Function

The productivity of Enterprise Resource Planning systems has been discussed in several other studies in the past decade. The results were largely consistent with the theoretical predictions that ERP implementation enhances firm productivity. The only exceptions were the results of studies that were conducted using financial archival data as a measure of productivity. This study predicts that the exceptional findings of the previous studies in the ERP productivity relationship are due to the failure to consider several important factors: CEO equity holdings and horizon, timing of the implementation, type of modules implemented, and the scope of the implementation. The results were consistent with the study prediction.