ERPs in Higher Education Institutions: Motivations, Challenges, and Success Factors

Abstract

Enterprise Resource Planning Systems (ERPs) are of vital importance to all institutions, especially those involved in higher education (HEIs). However, the level of their implementation among these institutions has shown poor results. Currently, higher education institutions in Malaysia have yet to explore factors leading to the successful implementation of ERPs. There is a lack of research on ERP systems implemented in HEIs, especially regarding their success factors. As such, a literature review was conducted on ERPs in higher education institutions, discussing the advantages of different systems; their obstacles to implementation; and their success factors in HEIs. This review concluded with two theories by which to define the most critical and impactful factors to these systems' success. It is hoped that this review will help HEIs to understand the factors that might lead to the successful implementation of ERPs. In addition, implementing ERPs successfully in higher education will help develop a global competitive advantage, as well as affect the satisfaction levels of stakeholders in HEIs. Whilst investments in ERP systems by modern organisations are becoming increasingly common – especially amongst higher education institutions - the lack of previous empirical research in this environment has neglected the potential benefits of these systems.