Critical Success Factors in ERP System Adoption: Comparative Analysis of the Private and the Public Sector

Abstract

This research provides useful insight into differences in the perception of signifi cance and the degree of fulfi llment of Critical Success Factors (CSFs) of Enterprise Resource Planning (ERP) adoption between private and public sector organizations. The survey was conducted on a sample of 77 Serbian organizations, with approximately equal representation of those from the private and the public sector. A comprehensive list of CSFs, compiled as a result of an extensive literature review, was included in the questionnaire. The collected data and statistical procedures applied revealed the CSFs that differentiate the organizations from the two observed sectors. Involvement of end users in ERP adoption and implementation activities has proven to be the CSF in relation to which the assessments and attitudes of organizations from the two sectors differ the most. Results of this research indicate that differences between private and public sector organizations are more distinct in terms of their level of fulfi llment of ERP adoption CSFs than they are in terms of their assessment of CSFs’ signifi cance. This points to a conclusion that differences in the way of functioning and governance of organizations from these two sectors infl uence their ability to tackle the problems much more than their ability to recognize them. The practical contribution of this research is in providing some useful fi ndings that can greatly assist relevant stakeholders to achieve a higher success rate in an ERP adoption. In addition to responding to the initial research questions, this paper has also revealed new issues, suggesting the need for further research.