With the development of economic globalization, informatization andintellectualization, the business environment has taken place great changes. Theenterprise can gain advantages and vital power in intense competition only byconstantly reducing costs, getting market and produce information in time andpromoting new products. In order to adapt to the white-hot competition environmentand survivor and development, more and more enterprises introduced ERP tomanage the business, capital and information flo w. Enterprises in western countryachieve remarkable results with running ERP. While the effect of running ERP inChina is in doubt. Some Chinese enterprises get positive business impact, some aretrapped in” the productivity paradox”.What is the actually impact of ERP adoption is the biggest driving force of thispaper. On the basis of122listed companier’ empirical data from Shanghai StockExchange between2001and2006, the current study examined the impact of ERPadoption on firm performance with theoretical and empirical analysis.The paper is organized as follows: First, briefly reviews the precious researchwhich focus on “productivity paradox” and the relationship between ERP andbusiness performance. Then introduces the concept and the advantages of ERP, howit affects the financial performance. At last, advance hypothesis and exam themthough the methods of Wilcoxon Signed Ranks Test and Paired-Samples T Test.The results indicates that the financial performance is not significantly better in ashort term, while with the elapse of time, the financial performance of ERP adoptersis significant better than the nonadopters. This fact proves that “the productivityparadox” is not ture. In addition, we found the influences of manufacturing and non-manufacturing companies are differennt. |