ERP Critical Success Factors-Roles and Impact on Promoting Cross Functional Integration

Abstract

There are only a few researches that are focus on Enterprise Resource Planning (ERP) and its effects on cross-functional integration and none of them have stated clearly and comprehensively on what are needed to be done in order to let ERP reaches its full potential on enhancing cross-functional integration level. As a result, the objective of this research is to identify answers on why some ERP user organizations are successful in promoting cross-functional integration, while the others are not? Is Critical Success Factore (CSF) the root cause of different levels of firm cross functional integration after ERP implementation? If yes, how they are put into practice so that it will enhance cross-functional integration. Multiple-case studies with in-depth interview technique is used with 55 respondents who are either ERP consultants or representatives from ERP user organizations. As a result of this study, the definition of ERP success in terms of cross-functional integration is proposed. Moreover, the result of this qualitative research shows that it is actually the individuals who are that drive the ERP project to its full potential of unifying cross-functional departments. In addition, the pattern of characteristics of change agents and the empowering factors that can strengthen their capability are discovered. Furthermore, the study allows us to gain more insight on how organization have practically done to sustain or even improve cross functional integration through ERP systems overtime. The findings of this research should be able to trigger the new dimension of further development of theory about the relationship between ERP system and organization behavior as well as the further research on sustainability factors that could improve organization performance through ERP usage.