Abstract
The aim of this paper was to evaluate the risk level for both intra-organizational cultures and for different industries in implementing an enterprise resource planning (ERP) system. This study adopts the Fuzzy Analytic Network Process (FANP) method to assess ERP implementation risks, which were categorized into four dimensions: management and execution, software system, users, and technology planning. An empirical survey was conducted that utilized the collected survey data of 20 ERP experts in Taiwan to assess, rank, and improve the critical risks of ERP implementation via the FANP method. Based on the results of the FANP method, a follow-up survey of ERP end-users in different departments of three industries was conducted to assess how intra-organizational cultures and cross-industries affect users’ perceived risks a real world scenario. Our research results demonstrated that “lack of management support and assistance” is vital risk for a successful ERP implementation. Top management support and involvement are crucial and essential factors to the success of a firm's ERP implementation. “Ineffective communication with users” was found to be the second highest risk factor. The benefits of using the FANP method for evaluating the risk factors come from the clear priority weights between alternatives. Finally, this study provides suggestions to help enterprises decrease ERP risks, and enhance the chances of success of ERP implementations among intra-organizational cultures and across-industries.
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