Does Enterprise Resource Planning Impact on Firm Performance?

ABSTRACT: In the era of global competition, Enterprise Resource Planning (ERP) is system that can help
company to integrating the management of all the company’s resource. The purpose of this study is to measure
the extent to which specific firms have implemented ERP system and, to assess the value implication of this
system on firm performance. This study focus in Indonesian Manufacturing Companies. Firm performance is
proxied by profitability ratio and solvency ratio. The result of this study found that ERP has a positive effect on
profitability, whereas for solvency, ERP has a negative effect. It can be said that companies that implement ERP
have better performance compared to companies that do not implement ERP.
KEYWORDS: Enterprise Resource Planning, ERP Implementation, Firm Performance, Profitability, Solvency