The Role of Technology, Organization, and Environment Factors in Enterprise Resource Planning Implementation Success in Jordan

Mohammad Al-Zoubi

doi:10.5539/ibr.v11n8p48

Abstract

In many ways, the application of Enterprise Resource Planning (ERP) systems is useful. In today’s business arena, ERP is regarded as a necessity. Implementation of ERP is costly and requires a lot of efforts but in Jordanian organizations, its success rate has been unsatisfactory. Hence, this study attempts to identify factors linked to implementation success of ERP in Jordan. The strategic factors are examined and they include technology adoption, web site service, competitive, top management support, change management, business process management, and trust. Questionnaires were distributed to ERP users in Jordanian firms which returned 141 responses which were analyzed. The results show significant linkage between technology adoption, web site service, competitive, top management support, change management, and business process management, and ERP implementation success. Nonetheless, the findings do not support the linkage between business process management and ERP implementation success. The findings show that firms can leverage TOE for improving ERP’s implementation success to gain the anticipated benefits. Also, there is possibility that different critical success factors have different impacts on ERP benefits. Such finding expands the supposition of TOE theory that resources generate competitive advantages. This paper adds to researches on ERP by providing further evidence of the differing impacts of TOE on the successful implementation of ERP.

Highlights

The phenomenon of globalization in addition to increasing competition in the market can be a threat to organizations
Systems of enterprise resource planning (ERP) are crucial to companies that attempt to obtain competitive advantages which include reduction of cost, improvements of business processes, integration of operations and departments all of which assist in improving the organizations in terms of their effectiveness and competitiveness (Vlachos, 2006)
This study looks into the effect of the factors of technology, those of organization, and those of environment on resource planning of enterprise among firms in Jordan

Summary

Introduction

The phenomenon of globalization in addition to increasing competition in the market can be a threat to organizations. As a respond to this threat, enterprise resource planning (ERP) is implemented (Taube & Gargeya, 2005 and Dong-Wook, 2018). Systems of ERP are crucial to companies that attempt to obtain competitive advantages which include reduction of cost, improvements of business processes, integration of operations and departments all of which assist in improving the organizations in terms of their effectiveness and competitiveness (Vlachos, 2006). To be implemented, ERP needs substantial amount of financial resources while complicated, challenging as well as lengthy. Indihar Stemberger and Kovacic (2008) mentioned the risk of losing competitive advantage by having flexibly customized business processes as another disadvantage (Damijan Ž, Andrej K, and Mojca, 2009)

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Results

Conclusion