Development of Sustainable Business Model: A Conceptual Framework for the Financial Sector to Obtain Successful ERP

Abstract

The present study identifies the key antecedent factors for accomplishing the adoption stage of enterprise resource planning (ERP) systems in their business operations. Four potential antecedent factors of adoption were derived from the literature, and data were obtained from a sample of 200 executives of the banking organizations of the financial sector across India. A structural equation modeling (SEM) technique was used to examine the complex relationships between antecedents and the adoption decision. The authors survey the literature to discover and classify critical success factors that are potentially applicable to financial sector. Four broad parameters namely, strategic, organizational, technological, and environmental (SOTE) has been identified for the efficacious development of ERP system in the financial sector of India. 11 dimensions has emerged as significant one for the financial sector. The results show that most of the success factors found in the literature apply to the industry. Nevertheless, distinct differences were found as well. Some factors, such as innovativeness of the implementation strategy, formulation of sound business plan, integration within the departments, adaptation capability of the system etc. would become the key instruments for successful implementation of ERP in the financial sector. The findings can help the executives of the financial sector to focus their attention, priorities, resources and leadership on managing the success factors that have been established to be critical for achieving ERP project implementation and ultimately, leading to the development of the sustainable business model.