Many domestic manufacturing companies have implemented the ERP system to improve the competitiveness.
The objective of this study is to verify the implementation effect of ERP system on the basis of the management accounting information.
As a subject matter of analysis, we limited our concern only in companies that are registered at the Korea Stock Exchange(KSE) or Korea Securities Dealers Automated Quotation(KOSDAQ) or that are statutory audited in which all of them have equipped with SAP R/3 or Oracle ERP package from 1997 to 2003.
Firms are required to have relevant data available on the KIS-Value program from 1994 to 2006. This results in a sample of 48 firm observations.
In this study, inventory, labor cost and profitability variables are considered to verify the implementation effect.
Methodology, the average years 1, 2 and 3 before the implementation of the ERP and the average years 1, 2 and 3 after the implementation of the ERP, compare with the average financial effect of each period.
The results of this research are as follows:
In conclusion, the implementation of the ERP system did not affect to the probability of company positively but affected the efficiency of inventory and labor cost positively.