The Impact of ERP Implementation on Financial Processes: A Case Study

Document Type: Original Article

Authors

1 assistan professor, accounting department, petroleum faculty of tehran, petroleum university of technology

2 MA student in Finance, Petroleum University of Technology

Abstract

In this research we try to investigate impact of Enterprise Resource Planning (ERP) implementation on the effectiveness of financial processes in PETROPARS Ltd as a case study in petroleum industry. In this regard, three indicators of Ahituv and Neumann model containing time, content, and format have been utilized to compare traditional systems used in PETROPARS Ltd before implementation of ERP/SAP system. For this purpose, four hypothesis related to financial processes were developed and data collected from 101 employees related to financial processes in PETROPARS Ltd. There were 10 research questions related to the three indicators of Ahituv and Neumann model. Research findings show that ERP/SAP implementation has a positive and significant impact on financial processes effectiveness compared to the traditional systems previously used (before ERP/SAP system) in PETROPARS Ltd. This research contributes to the body of knowledge for investigation and documentation of actual results of ERP implementation in the petroleum industry of Iran. A phenomenon that has not been previously touched.

Keywords


  • References
  • Energy Information Administration (EIA) Beta report, 19th June 2015, https://www.eia.gov/beta/international/analysis.cfm?iso=IRN, last accessed: 15 July 2017.
  • Global Gas Flaring Reduction (2014), “Flared Gas Utilization Strategy; Opportunities for Small-Scale Uses of Gas,” The World Bank. PP: 1-129.
  • Broad, M.J., and Javadi, S.M. (2009), "Modelling a successful performance measurement system", Journal of Business and Economic Review. Institute of Management Sciences, 1, (1), pp. 29-39.
  • Derakhshanno, Masoud (2014), “National Interests and Utilization Policies of Oil and Gas Resources,” Majles and Pajouhesh, Vol. 34, 9th year, pp. 13-65.
  • Bagheri, Ali (2011), “The Role of OPEC in the Future Market of Various Energies,” Iranian Economic Research Quarterly, Vol. 46, pp. 1-18, spring.
  • Hausman, J. (2013), “Non-neutrality of the Proposed Resource Super Profits Tax,” Australian Economic Review, 44:3, pp. 239–44.
  • Nguyen, C.C., Bhatti, M.I. (2012). Copula model dependency between oil prices and stock markets: Evidence from China and Vietnam. Journal of Inte`rnational Financial Markets, Institutions & Money, 22, 758–773.
  • Hufbauer, G. C., and Schott Jeffrey J. (2012). "Will the World Trade Organization Enjoy a Bright Future?" Policy Briefs PB12-11, Peterson Institute for International Economics.
  • Hufbauer G., Schott J., Elliott K. and Oegg B. (2007), “Economic Sanctions Reconsidered, 3rd edition, Peterson Institute for International Economics.
  • Dorri, Behrouz and Hamzei, Ehsan (2010), Determining a Strategy in response to Risk Management, Industrial Management Journal, in Persian, issue 4 , pages 77-94.
  • Mirmoghadam, M. and Ghazinoory, S. (2017), “An institutional analysis of technological learning in Iran's oil and gas industry: Case study of south Pars gas field development”, Technological Forecasting and Social Change, Volume 122, September 2017, Pages 262-27.
  • Derakhshanno, Masoud (2011), “Energy Security and Future Developments of Oil and Gas Markets,” Rahbord Quarterly, Center for Strategic Research, Vol. 64, pp. 159-188.