The Impact of ERP Investments on Organizational Performance

Enterprise resource planning (ERP) systems affect organizations and are implemented to enhance organizational effectiveness. However, ERP implementation is complex, costly and the research to date on the results of ERP investments on organizational performance have been inconclusive. The goal of this study was to discover the impact of ERP systems implementation on organizational performance by measuring the impact of an ERP on financial performance of public companies over a period of four years. Based on a comprehensive literature search, two independent variables and four dependent variables that represent organizational performance were defined. Return on asset, return on investment, return on sales, and cost of goods sold over sales measured organizational performance. ERP implementation status and ERP scope (independent variables) affected dependent variables. This causal comparative study was based on a quantitative research design and was divided into two parts. The first part of the study focused on discovering the relationship between ERP implementation and organizational performance.