The CSFs from the Perspective of Users in Achieving ERP System Implementation and Post-Implementation Success: A Case of Saudi Arabian Food Industry

Abstract

Enterprise resource planning (ERP) systems have a major impact on the functioning of organizations and the development of business strategy. However, one of the main reasons that cause failure in ERP implementations to achieve the expected benefits is that the system is not fully accepted by end users. User rejection of the system is the second reason after time and budget overrun, while the fourth barrier to ERP post-implementation. Most studies have focused on ERP adoption and installation while neglecting post-implementation evaluation, which omits insights into the priority of ERP systems and CSFs from the stance of ERP users. Therefore, this study identified factors that led to user acceptance of the use of ERP systems at both implementation and post-implementation stages (after installation). In addition, this study assessed the interrelationship between the factors and the most influential factors toward user acceptance. A survey was conducted among pioneers of the food industry in Saudi Arabia, which included 144 ERP system users from assembly and manufacturing, accounts, human resources, warehouse, and sales departments. The descriptive-analytical approach was deployed in this study. As a result, project management, top management support, and user training had significant impacts on the efficacy of ERP system implementation. On the contrary, support for technological changes in new software and hardware, managing changes in systems, procedures, and work steps already in place within the organization, as well as user interfaces and custom code, displayed a direct impact on user acceptance of ERP systems post-implementation. This study is the first research that provides a rating of CSFs from the perspective of its users in Saudi Arabia. It also enables decision makers of food industries to better assess the project risks, implement risk-mitigation methods, create appropriate intervention techniques to discover the strengths and limitations of the ERP users, and value the “best of fit” solutions over “best practice” solutions when determining the most appropriate option for food industries.