ERP Vendor Satisfaction: From Communication and IT Capability Perspectives

Abstract

ABSTRACT Enterprise resource planning (ERP) systems play a critical role in supporting a firm’s operations. Due to this reliance, a firm interacts with both the ERP solution provider and the ERP vendor as both support and maintain this complex system. This study investigates the impact of relationship interactions and a firm’s information systems (IS) technical competence on a firm’s satisfaction with the ERP vendor. To this end, this paper develops and verifies a model in which a firm’s past interactions and internal IS technical abilities serve as the antecedents of the firm’s satisfaction with its ERP system and ERP vendor. Empirical data collected from a sample of 168 firms were analyzed. The results suggest a firm’s perception of vendor conflict handling, and trust in the ERP vendor do positively influence the firm’s satisfaction with the ERP vendor. IS technical competence and strategic role of IS have a positive impact on a firm’s successful experience with the ERP system which ultimately leads to satisfaction perceptions.