Research Article
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Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey

Year 2016, Issue: 72, 187 - 210, 01.10.2016

Melek Eker , Alp Aytaç

https://doi.org/10.25095/mufad.396732
Cited By: 2

Abstract

Almost all large and middle-sized firms worldwide have adopted enterprise planning (ERP) systems and advanced managerial accounting techniques (AMAT). However, there are virtually no studies on the interaction between ERP and AMAT and the effects of this In this study, the effects of interaction between ERP and AMAT on firm performance are examined via an empirical analysis based on data from 125 manufacturing firms selected from among the top 500 in Turkey in 2015. The results support the hypothesis that high interaction between ERP and AMAT is associated with high financial and non-financial performance.

Keywords

ERP Advanced Managerial Accounting Techniques Financial Performance Non- Financial Performance Factor Analysis Logistic Regression Analysis

References

  • Aberdeen Group (2006), Benchmarking ERP in SMB.
  • Bac, Ugur- Erkan, Erman T. (2013), ‘‘Effects of Business Process Reengineering and Enterprise Resource Planning on Supply Chain Management Performance’’, International Conference on IT and Intelligent Systerns, 2013 Bangkok, pp. 80–83.
  • Bhatt, G. (2000), “An Empirical Examination of the Effects of Information Systems Integration on Business Process Improvement”, International Journal of Operations and Production Management, (20:11), pp. 1331-1359.
  • Booth, Peter (2000) “Forum on Enterprise resource planning” Australian Accounting Review, Volume 10, Issue 22, November, pp.2–3.
  • Booth, Peter - Matolcsy, Zoltan - Wieder, Bernhard (2000) “The Impacts of Enterprise Resource Planning Systems on Accounting Practice – The Australian Experience”, Australian Accounting Review, Volume 10, Issue 22, November, pp. 4–18.
  • Bosilj, Vukšić, Vesna. - Spremić, Mario (2005), ‘‘ERP System Implementation and Business Process Change: Case Study of a Pharmaceutical Company’’, Journal of Computing and Information Technology, 13(1), pp. 11–24. http://doi.org/10.2498/cit.2005.01.02
  • Charalambos, Spathis – Sylvia, Constantinides (2004), “Enterprise resource planning systems’ impact on accounting processes”, Business Process Management Journal, Vol. 10 No. 2, 2004, pp. 234-247.
  • Colmenares, Leopoldo. (2009), “Benefits Of Erp Systems For Accounting And Financial Management” Allied Academies International Conference, Academy of Information and Management Sciences. Proceedings, 13.1, pp. 3-7.
  • Davenport, TH. (1998), “Putting the enterprise into the enterprise system”, Harvard Bus Rev, 76(4), pp. 121–131.
  • Dewhurst, F.W.- Martinez-Lorente, A.R.- Sanchez-Rodrıguez, C. (2003), ‘‘An initial assessment of the influence of IT on TQM: A multiple case study’’, International Journal of Operations and Production Management, 23 (4), pp. 348–374.
  • Dong, L. (2001), ‘‘Modelling top management influence on ES implementation’’, Business Process Management Journal, (7)3, pp. 243-250.
  • Edwards, James B. (2001), “ERP, Balanced Scorecard, and IT: How Do They Fit Together?”, The Journal of Corporate Accounting & Finance, Vol.12, Issue 5, July/August, pp. 3-12
  • El Sayed, Heba (2006), "ERPs and accountants' expertise: the construction of relevance", Journal of Enterprise Information Management, Vol. 19 Iss: 1, pp. 83 – 96.
  • Fahy, MJ -Lynch R.(1999), ‘‘Enterprise resource planning (ERP) systems and strategic management accounting’’, Paper presented at the 22nd Annual Congress of the European Accounting Association, Bordeaux, France, May 5–7.
  • Granlund, M. - Malmi, T (2002), “Moderate impact of ERPS on management accounting: a lag or permanent outcome?”, Management accounting research, Volume 13, Issue 3, September, pp. 299–321.
  • Hammer, Michael (1990), ‘‘Reengineering Work: Don’t Automate, Obliterate’’, Harvard Business Review, (July-August), pp. 104–112.
  • Holland, C - B. Light (2001), "A stage maturity model for enterprise resource planning systems use." ACM SIGMIS Database 32(2), pp. 34-45.
  • International Federation of Accountants (IFAC) (1998), Internatinal Management Accounting Practice Statement: Management Accounting Concepts, New York
  • Jha, V. S., - Joshi, H. (2007), ‘‘Relevance of Total Quality Management (TQM) or business Excellence Strategy Implementation for Enterprise Resource Planning (ERP) – A Conceptual Study.
  • Jiang, Hua, - Ruan, Junhu (2008), ‘‘Study on the interactive relationship between BPR and ERP’’, 2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008, pp. 1–5. http://doi.org/10.1109/WiCom.2008.1431
  • Kanellou, Alexandra - Spathis, Charalambos (2013), “Accounting benefits and satisfaction in an ERP environment”, International Journal of Accounting Information Systems, Volume 14, Issue 3, September, pp. 209–234.
  • Kudyba, Stephan - Vitaliano, Donald (2003), “Information Technology and Corporate Profitability: A Focus on Operating Efficiency”, Information Resources Management Journal, Volume 16 Issue 1, January, pp. 1-13.
  • Law, Chuch C. H.-, Chen, Charlie C. - Wu, Bruce J. P. (2010), ‘‘Managing the full ERP lifecycle: Considerations of maintenance and support requirements and IT governance practice as integral elements of the formula for successful ERP adoption’’, Computers in Industry, 61(3), pp. 297–308. http://doi.org/10.1016/j.compind.2009.10.004
  • Lee, Juun-Min - Chen, Injazz - Chen, Richard C. W., Chung - Chen H. (2002), ‘‘A TargetCosting Based Strategic Decision Support System’’, Journal of Computer Information Systems, 43(1), pp. 110–116.
  • Mahesha, V.- Akash, S. B (2013), “Management Accounting Benefits: ERP Environment”, SCMS Journal of Indian Management, Jul-Sep, Vol. 10 Issue 3, pp. 67-74.
  • Malinić, Slobodan - Jovanović, Dejan (2012), “ERP and Management Accounting Changes of Industrial Enterprises in Serbia” Industrija, Vol.40, No.3, pp. 25-31.
  • Martinez, Lorente (2004), “The effect of ınformation Technologies on TQM: an initial analysis”Int. J. Production Economics 89, pp. 77-93.
  • Powell, Daryl - Alfnes, Erlend - Strandhagen, Jan Ola - Dreyer, Heidi (2013), “The concurrent application of lean production and ERP: Towards an ERP-based lean implementation process”, Computers in Industry, 64(3), pp. 324–335.
  • Ragowsky, Arik - Somers, Toni M.- Adams, Dennis A. (2005), ‘‘Assessing the Value Provided by ERP Applications Through Organizational Activities’’ Cais, 16(1), pp. 381–407.
  • Ram, Jiwat - Corkindale, David - Wu, Ming-Lu (2014), ‘‘ERP adoption and the value creation: Examining the contributions of antecedents’’, Journal of Engineering and Technology Management, 33, pp. 113–133.
  • Scapens, Robert W. - Jazayeri, Mostafa (2003), “ERP Systems and Management Accounting Change: Opportunities or Impacts? A Research Note”, European Accounting Review, Vol. 12, No. 1, pp. 201-233.
  • Spathis, Charalambos - Ananiadis, John (2005), “Assessing the benefits of using an enterprise system in accounting information and management”, Journal of Enterprise Information Management, 04; 18(2), pp. 195-210.
  • Turney, Peter b.b. - Alan j. Stratton (1999), “Using ABC to support continuous improvement” Management accounting, September, pp. 46-50 Zbaracki, M.J. (1998) 'The rhetoric and reality of total quality management', Administrative Science Quarterly, pp. 602-636.
  • Zhang, Huiru (2010),‘‘The innovation in cost management in the ERP environment’’, 2010 International Conference on Computer and Information Application, pp. 221– 224, http://doi.org/10.1109/ICCIA.2010.6141576

Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey

Year 2016, Issue: 72, 187 - 210, 01.10.2016

Melek Eker , Alp Aytaç

https://doi.org/10.25095/mufad.396732
Cited By: 2

Abstract

Almost all large and middle-sized firms worldwide have adopted enterprise planning
(ERP) systems and advanced managerial accounting techniques (AMAT). However, there are
virtually no studies on the interaction between ERP and AMAT and the effects of this
interaction on firm performance. In this study, the effects of interaction between ERP and
AMAT on firm performance are examined via an empirical analysis based on data from 125
manufacturing firms selected from among the top 500 in Turkey in 2015. The results support
the hypothesis that high interaction between ERP and AMAT is associated with high financial
and non-financial performance.

Keywords

ERP Advanced Managerial Accounting Techniques Financial Performance Non- Financial Performance Factor Analysis Logistic Regression Analysis

References

  • Aberdeen Group (2006), Benchmarking ERP in SMB.
  • Bac, Ugur- Erkan, Erman T. (2013), ‘‘Effects of Business Process Reengineering and Enterprise Resource Planning on Supply Chain Management Performance’’, International Conference on IT and Intelligent Systerns, 2013 Bangkok, pp. 80–83.
  • Bhatt, G. (2000), “An Empirical Examination of the Effects of Information Systems Integration on Business Process Improvement”, International Journal of Operations and Production Management, (20:11), pp. 1331-1359.
  • Booth, Peter (2000) “Forum on Enterprise resource planning” Australian Accounting Review, Volume 10, Issue 22, November, pp.2–3.
  • Booth, Peter - Matolcsy, Zoltan - Wieder, Bernhard (2000) “The Impacts of Enterprise Resource Planning Systems on Accounting Practice – The Australian Experience”, Australian Accounting Review, Volume 10, Issue 22, November, pp. 4–18.
  • Bosilj, Vukšić, Vesna. - Spremić, Mario (2005), ‘‘ERP System Implementation and Business Process Change: Case Study of a Pharmaceutical Company’’, Journal of Computing and Information Technology, 13(1), pp. 11–24. http://doi.org/10.2498/cit.2005.01.02
  • Charalambos, Spathis – Sylvia, Constantinides (2004), “Enterprise resource planning systems’ impact on accounting processes”, Business Process Management Journal, Vol. 10 No. 2, 2004, pp. 234-247.
  • Colmenares, Leopoldo. (2009), “Benefits Of Erp Systems For Accounting And Financial Management” Allied Academies International Conference, Academy of Information and Management Sciences. Proceedings, 13.1, pp. 3-7.
  • Davenport, TH. (1998), “Putting the enterprise into the enterprise system”, Harvard Bus Rev, 76(4), pp. 121–131.
  • Dewhurst, F.W.- Martinez-Lorente, A.R.- Sanchez-Rodrıguez, C. (2003), ‘‘An initial assessment of the influence of IT on TQM: A multiple case study’’, International Journal of Operations and Production Management, 23 (4), pp. 348–374.
  • Dong, L. (2001), ‘‘Modelling top management influence on ES implementation’’, Business Process Management Journal, (7)3, pp. 243-250.
  • Edwards, James B. (2001), “ERP, Balanced Scorecard, and IT: How Do They Fit Together?”, The Journal of Corporate Accounting & Finance, Vol.12, Issue 5, July/August, pp. 3-12
  • El Sayed, Heba (2006), "ERPs and accountants' expertise: the construction of relevance", Journal of Enterprise Information Management, Vol. 19 Iss: 1, pp. 83 – 96.
  • Fahy, MJ -Lynch R.(1999), ‘‘Enterprise resource planning (ERP) systems and strategic management accounting’’, Paper presented at the 22nd Annual Congress of the European Accounting Association, Bordeaux, France, May 5–7.
  • Granlund, M. - Malmi, T (2002), “Moderate impact of ERPS on management accounting: a lag or permanent outcome?”, Management accounting research, Volume 13, Issue 3, September, pp. 299–321.
  • Hammer, Michael (1990), ‘‘Reengineering Work: Don’t Automate, Obliterate’’, Harvard Business Review, (July-August), pp. 104–112.
  • Holland, C - B. Light (2001), "A stage maturity model for enterprise resource planning systems use." ACM SIGMIS Database 32(2), pp. 34-45.
  • International Federation of Accountants (IFAC) (1998), Internatinal Management Accounting Practice Statement: Management Accounting Concepts, New York
  • Jha, V. S., - Joshi, H. (2007), ‘‘Relevance of Total Quality Management (TQM) or business Excellence Strategy Implementation for Enterprise Resource Planning (ERP) – A Conceptual Study.
  • Jiang, Hua, - Ruan, Junhu (2008), ‘‘Study on the interactive relationship between BPR and ERP’’, 2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008, pp. 1–5. http://doi.org/10.1109/WiCom.2008.1431
  • Kanellou, Alexandra - Spathis, Charalambos (2013), “Accounting benefits and satisfaction in an ERP environment”, International Journal of Accounting Information Systems, Volume 14, Issue 3, September, pp. 209–234.
  • Kudyba, Stephan - Vitaliano, Donald (2003), “Information Technology and Corporate Profitability: A Focus on Operating Efficiency”, Information Resources Management Journal, Volume 16 Issue 1, January, pp. 1-13.
  • Law, Chuch C. H.-, Chen, Charlie C. - Wu, Bruce J. P. (2010), ‘‘Managing the full ERP lifecycle: Considerations of maintenance and support requirements and IT governance practice as integral elements of the formula for successful ERP adoption’’, Computers in Industry, 61(3), pp. 297–308. http://doi.org/10.1016/j.compind.2009.10.004
  • Lee, Juun-Min - Chen, Injazz - Chen, Richard C. W., Chung - Chen H. (2002), ‘‘A TargetCosting Based Strategic Decision Support System’’, Journal of Computer Information Systems, 43(1), pp. 110–116.
  • Mahesha, V.- Akash, S. B (2013), “Management Accounting Benefits: ERP Environment”, SCMS Journal of Indian Management, Jul-Sep, Vol. 10 Issue 3, pp. 67-74.
  • Malinić, Slobodan - Jovanović, Dejan (2012), “ERP and Management Accounting Changes of Industrial Enterprises in Serbia” Industrija, Vol.40, No.3, pp. 25-31.
  • Martinez, Lorente (2004), “The effect of ınformation Technologies on TQM: an initial analysis”Int. J. Production Economics 89, pp. 77-93.
  • Powell, Daryl - Alfnes, Erlend - Strandhagen, Jan Ola - Dreyer, Heidi (2013), “The concurrent application of lean production and ERP: Towards an ERP-based lean implementation process”, Computers in Industry, 64(3), pp. 324–335.
  • Ragowsky, Arik - Somers, Toni M.- Adams, Dennis A. (2005), ‘‘Assessing the Value Provided by ERP Applications Through Organizational Activities’’ Cais, 16(1), pp. 381–407.
  • Ram, Jiwat - Corkindale, David - Wu, Ming-Lu (2014), ‘‘ERP adoption and the value creation: Examining the contributions of antecedents’’, Journal of Engineering and Technology Management, 33, pp. 113–133.
  • Scapens, Robert W. - Jazayeri, Mostafa (2003), “ERP Systems and Management Accounting Change: Opportunities or Impacts? A Research Note”, European Accounting Review, Vol. 12, No. 1, pp. 201-233.
  • Spathis, Charalambos - Ananiadis, John (2005), “Assessing the benefits of using an enterprise system in accounting information and management”, Journal of Enterprise Information Management, 04; 18(2), pp. 195-210.
  • Turney, Peter b.b. - Alan j. Stratton (1999), “Using ABC to support continuous improvement” Management accounting, September, pp. 46-50 Zbaracki, M.J. (1998) 'The rhetoric and reality of total quality management', Administrative Science Quarterly, pp. 602-636.
  • Zhang, Huiru (2010),‘‘The innovation in cost management in the ERP environment’’, 2010 International Conference on Computer and Information Application, pp. 221– 224, http://doi.org/10.1109/ICCIA.2010.6141576
There are 34 citations in total.

Details

Primary Language English
Subjects Business Administration
Other ID JA86AA22MK
Journal Section Research Article
Authors

Melek Eker

Alp Aytaç

Publication Date October 1, 2016
Submission Date October 1, 2016
Published in Issue Year 2016 Issue: 72

Cite

APA Eker, M., & Aytaç, A. (2016). Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey. The Journal of Accounting and Finance(72), 187-210. https://doi.org/10.25095/mufad.396732
AMA Eker M, Aytaç A. Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey. The Journal of Accounting and Finance. October 2016;(72):187-210. doi:10.25095/mufad.396732
Chicago Eker, Melek, and Alp Aytaç. “Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey”. The Journal of Accounting and Finance, no. 72 (October 2016): 187-210. https://doi.org/10.25095/mufad.396732.
EndNote Eker M, Aytaç A (October 1, 2016) Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey. The Journal of Accounting and Finance 72 187–210.
IEEE M. Eker and A. Aytaç, “Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey”, The Journal of Accounting and Finance, no. 72, pp. 187–210, October 2016, doi: 10.25095/mufad.396732.
ISNAD Eker, Melek - Aytaç, Alp. “Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey”. The Journal of Accounting and Finance 72 (October 2016), 187-210. https://doi.org/10.25095/mufad.396732.
JAMA Eker M, Aytaç A. Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey. The Journal of Accounting and Finance. 2016;:187–210.
MLA Eker, Melek and Alp Aytaç. “Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey”. The Journal of Accounting and Finance, no. 72, 2016, pp. 187-10, doi:10.25095/mufad.396732.
Vancouver Eker M, Aytaç A. Effects Of Interaction Between Erp And Advanced Managerial Accounting Techniques On Firm Performance: Evidence From Turkey. The Journal of Accounting and Finance. 2016(72):187-210.

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