CEO Characteristics, Enterprise Resource Planning, and Performance

Abstract

This research is aimed to examine the moderating role of CEO characteristics on the effect of ERP implementation on performance. This research uses random effect regression. The research sample is 665 firms-years observations of manufacturing firms in Indonesian Stock Exchange listed from 2012 to 2018. The sample consists of 238 firm-years that implement ERP as main group sample and 427 firm-years that do not implement ERP as control group sample. Result shows that ERP implementation is effective to increase performance when firm led by female CEO, higher-educated CEO, longer-tenured CEO, and younger CEO. This research contributes to fill gap of previous findings about inconsistent result of ERP implementation on performance. This research  has implication for firm, especially for ERP implementer firm to make policy about CEO selection by considering gender, age, education, and tenure, so the ERP can be implemented effectively.