60、so important factors of ERP project success or failure and all contribute to the relationship between ERP and business performance (Loh et al., 2006).Theoretical Considerations: IT and Business PerformanceInformation technology is a general term which includes many technologies. ERP systems can be t 。

61、hought of as a specific instance of information technology. Therefore, in the following sections a discussion of the impact between IT and business performance will be discussed.Business Performance and ITIn this section, an exploration for the relationship between information technology and busines 。

62、s performance will be reviewed. One of the most important business performance gains to consider is productivity. Rei (2004) discussed the increase in labour productivity by implementing software.On the other hand, Pilat (2004) has refuted such claims because they were mainly macro-economic improvem 。

63、ents found in nation-wide productivity studies as this of Rei (2004). Such findings had great variations between countries and have also been criticized as being too aggregate to give an accurate picture. Therefore firmlevel analysis was executed by researchers. Pilat (2004) reported that a study on 。

64、 Canadian firms in 1998 shows that as a company adopts IT involving software, hardware, and communication technology, the relative labour productivity, as compared to non-IT users, gets better. However, software was found to have the least effect when compared to hardware and communication technolog 。

65、y (which is relevant to ERP as it is mainly software). When many IT technologies are combined,it was found to generate greater positive effects on labour productivity.Hamilton and Asundi (2008) also reported benefits from IT investment in SMEs. In one of the food industry companies, they found that an increase in sales and an increase in inventory turnover were achieved after adopting IT. Such payoff from IT was said to be achieved after a period between 3 to 6 years (Hamilt 。

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