How Do Enterprise Resource Planning Systems Affect Firm Risk? Post-Implementation Impact

摘要: Managing firm risk, or performance volatility, is a key task for contemporary firms. Although information technology (IT) has been generally viewed as an effective processing tool that enables firms to better cope with uncertainty, thus holding the potential mitigate evidence support this view lacking in literature. We theorize enterprise resource planning (ERP) systems, major type of IT applications, can help reduce risk and, particular, we argue that, uncover reduction effect ERP research focus on post-implementation stage needed. Based sample 2,127 firm-year observations, found systems were associated reduced and was stronger greater scope functional operational modules, especially modules. further average, became when firms' operating environments feature higher while fully deploying system modules seem level off environmental uncertainty increases. These findings extend our understanding business value by shedding light benefit systems.