Abstract
Enterprise Resource Planning Systems (ERP) are currently used in a wide range of the organizations as the companies’ main information systems. Most previous studies find that those are superior to the conventional management information systems in terms of the function of integration and process standardization. In this paper, based on the assertion by Jensen and Meckling (1992) that “knowledge transfer costs are extremely important in the discussion of decentralization”, we investigated the impact of ERP introduction on this relationship between information asymmetry and decentralization in the organization, using a questionnaire for 1,501 managers working at the companies with more than 300 employees. From this empirical analysis, we found that it has the effect of weakening this positive relationship. On the other hand, it was also found that there is a possibility the effect of implementation with the cloud type would decrease compared to the on-premise type.
