The effects of organizational intangible factors on successful enterprise resource planning systems implementation and organizational performance: A China experience

Abstract

This study determines the relative impact of intangible factors on successful enterprise resource planning system (ERPS) implementation, and the subsequent effect on organizational performance. An ERPS is business software and hardware that provides standardized procedures, integrates processes and associated work, and disseminates information throughout an organization. A total of 261 survey returns were obtained from senior executives with ERPS experience in China (PRC), supplemented by follow-up qualitative interview data from 16 senior executives. Structural equation model analysis revealed that intangible factors (such as strategic alignment and leadership commitment) and corporate culture had the greatest impact on ‘successful ERPS implementation’. Contrary to expectations, Chinese employee values/culture had no negative impact. Furthermore, this study supports previous findings from ERPS implementation studies in that the evidence for the conversion of non-financial to financial outcomes remains inconclusive.