The Impact Enterprise Resource Systems(ERP) on Organizational Performance : The Case Commercial Bank of Ethiopia

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Date

2021-04

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Publisher

A.A.U

Abstract

This study focused on the impact of enterprise resource planning systems on organizational Performance of commercial Bank of Ethiopia. The study adopted a cross section panel data from 2012 – 2019.The secondary sources of data was the audited from financial statements of the CBE collected from of the national bank of Ethiopia and the website of CBE. The collected data was analyzed through paired sample t test, descriptive statistics and simple regression analysis with the aid of SPSS25 in order to identifying whether a significant difference between Pre and Post –ERP financial performance of CBE to achieve integrated organizational performance which was planned as operational and strategic target by visioning 2025 to become one of the world class commercial bank. The research variables are ROA, ROE, ROIC, ER.OHB, PRO, OX, PM, and Bank size. The output revealed that no significance on regression analysis while descriptive statistics and t test confirmed a significant decrease on post-ERP ROA, ROE while a decrease on ROIC was not significant. Post-ERP efficiency has improved but insignificant decrease on OHB and productivity cost while OX has been on a better track of decrease that supporting improvement on operational benefit. Strategic benefits have not being offered because PM was not grown as expected relative to bank size increase. Profitable marketing at lower expense develops integration in CBE.

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Keywords

Commercial Bank of Ethiopia, Organizational Performance Financial performance

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