Analysis on inefficient ERP investment based on Behavioral Finance

摘要

Lots of domestic enterprises invested huge fund in ERP implementation, however couldn't get expected return. This article analyzes the reasons of inefficient ERP implementation using the new approach of Prospect Theory from the perspective of Behavioral Finance. It finds out that over-high expectation on advantages taken by IT leads to enterprises vision of inefficiency during ERP implementation; herd behavior driven by crowd mentality is the key reason for inefficient investment on ERP implementation.