Abstract
Enterprise resource planning (ERP) is an IT system that supports the business functions that firms adopt to gain advantages and development possibilities. However, some firms do not show positive financial performance after implementing ERP. Why is this the case? An ERP is an information system (IS) that brings about radical changes within organizations, changing both the IS environment and overall corporate business process, which may cause resistance from the organization’s members. Thus, change management is crucial, in operating a successful ERP, to addressing organizational changes after the adoption of ERP. The objective of this study was to examine the influence that the depth of business process reengineering (BPR) and change management have on ERP performances. To this end, KOSPI companies with more than a year of experience using ERP were analyzed using the structural equation method. This study confirmed mutual relationships between ERP success factors and its performance. In future research, it would be helpful to determine if companies with higher IT performances actually have better financial results.
Highlights
Modern business organizations face dynamic changes in their management environments, and many firms actively consider adopting information technology (IT) to adapt to these changes. enterprise resource planning (ERP) is a type of IT system that supports business functions and was first proposed in the mid-1990s
This study analyzed the effects of the depth of business process reengineering (BPR) and change management on the performance of ERP
It examined the information performance of ERPs, which has been ignored in previous studies (Marchand et al, 2000) [13]
Summary
Modern business organizations face dynamic changes in their management environments, and many firms actively consider adopting information technology (IT) to adapt to these changes. enterprise resource planning (ERP) is a type of IT system that supports business functions and was first proposed in the mid-1990s. Few studies aim to identify the effects that the depth of BPR have on the results of adopting an ERP system. Change management is another important issue in ERP adoption. The Internet Data Center (IDC) in South Korea estimates that the Korean ERP market will maintain a constant growth rate of 6.2%, despite global recession (IDC Corporate Korea 2012). This gradually globalizing market should be studied from the global perspective. We discuss the findings as well as the implications and limitations of the study
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