Enterprise Resource Planning Failure Research Articles

ERP failure: A systematic mapping of the literature

With the development of different technologies, the use and importance of Enterprise Resource Planning (ERP) systems continue to increase daily. In parallel with this increasing use, a lot of research is being done to successfully complete ERP implementation projects. However, despite these researches, reported case studies show that the success rates of ERP projects are meager.Based on the examples of experienced failure, researchers determine very different failure factors with varying perspectives for companies in different industry sectors, cultures, and sizes. It is becoming increasingly difficult for many practitioners and researchers to understand these failure factors correctly. Our objective is to investigate the state-of-the-art ERP Failure Factors that could benefit practitioners to utilize that information potentially.We review the body of knowledge related to ERP failure factors in the form of a systematic literature mapping (SLM). We pose four sets of research questions and systematically develop and refine a classification schema. The initial pool consisted of 353 articles. Systematic voting was conducted among the authors regarding the inclusion/exclusion criteria. As a result, there were 72 technical articles in our final pool.This SLM provides an overview of ERP critical failure factors (CFF) with different focused headings. These headings cover qualitative coding about CFF names, CFF rankings, the relation between CFF and ERP processes and failure modes, etc.The results of this study would benefit three groups of stakeholders: (i) Researchers who work on ERP Failure Factors, (ii) Solution implementers who provide consultancy services to companies that carry out ERP Implementation projects, and (iii) ERP project implementation managers. These stakeholders could utilize the results of this SLM to catch the trend of ERP implementation challenges.

Effect of ERP Implementation on Organisational Performance: Manager's Dilemma

Enterprise Resource Planning (ERP) improves commercial activity control and provides a competitive advantage when combined with existing benefits. However, end-users oppose ERP implementation because it disrupts the status quo. In addition, ensuring that all operational units use the same ERP system is not an easy task. Therefore, a lack of adaptability is the cause of ERP failure. This study used a qualitative case study approach to analyze an event and understood the ERP system and natural phenomena. The data was collected using a semi-structured interview. The researcher reached data saturation at the 15th respondent's feedback. Documentary data were examined for patterns and themes prior to triangulation. The result of this study shows that end-user support is critical to a system's daily operation and implementation, especially when it is new. Only a system that has been effectively designed, delivered, and trained may be used by end users. Implementing ERP enhances an organization's capacity and performance. Post-implementation evaluation is needed to determine the organization's potential and the system's value. Except for financial performance, the organization's overall performance has improved across all Balance Score Card (BSC) perspectives of internal processes, customers, learning, and growth. Adopting new technologies is expected to enhance the organization's overall efficiency. Each identified thematic area affects an organization's ability to use its ERP system effectively and efficiently to achieve previously identified benefits. In addition, the study found that STP organizations focus on the benefits of implementing ERP rather than the associated costs. Finally, organizations can better plan for the future benefits of replacing or updating ERP systems.

Enterprise resource planning implementation within science and technology park (STP) organisations: an avenue for future research. A systematic review.

Background: Enterprise resource planning (ERP) is critical to enhancing the ability to control commercial activities and results in a competitive advantage when combined with an organisation's existing competitive advantages. However, our practise review reveals that end users resist ERP implementation because the resulting changes will alter the current status quo. The implementation of an ERP system in an organisation is complex as it affects multiple areas of the business. Resistance to change is cited as a factor of ERP failure. Methods: In this study, we conducted a systematic literature review using Transfield’s five stages and established a conceptual framework for ERP system implementation in science and technology parks (STPs). Articles collected from Emerald, Science Direct, ProQuest and Scopus databases between 1st June 2021 and 15th June 2021. Two authors were assigned to check the suitability of the articles in order to avoid risk of bias. Articles were analysed based on components of a research paper and the data was tabulated using MS Excel. Results: Only eight papers (0.011% of all the papers) appeared when we searched for papers related to ERP with a focus on post ERP Implementation, end-user behaviours, organisational performance, and the accelerated SAP (system application and product) methodology. We found that there are hardly any articles on ERP post implementations in STP context particularly based on the evaluation part of accelerated SAP. Conclusions: Results indicate the lack of studies in this field, particularly those addressing issues related to STP. This study attempted to broaden the understanding of the ERP's effectiveness, particularly in terms of an organisation's operational performance.

Evaluating the Enterprise Resource Planning (ERP) System of a Bread Manufacturing Organisation from the Perspectives of Stakeholders

Enterprise Resource Planning (ERP) framework integration is an important and foundational business process preparation and knowledgesharing process. The ERP framework has in the past decade been regarded as a vital enabler for organisational performance and functions as an integral feature in today's diverse and competitive market climate. It normally needs considerable feedback in terms of commitment, time, and resources to incorporate an ERP method.In recent research, numerous contributing factors to the ERP's performance or failure were more specifically demonstrated; still, only the ERP's contributions in developed countries were illuminated. Moreover, many developing countries are interested in ERP deployment in their organizations.As Microsoft Dynamics 365 has not been thoroughly researched to date, this study seeks to penetrate an unexplored territory for Malaysia by concentrating on Malaysia-specific results. The importance of this analysis is a detailed review of the spectrum of Microsoft Dynamics 365 operations in supply chain management. Additionally, this analysis aims to help specific sectors and enterprises further grasp the value of Microsoft Dynamics 365 as an enterprise resource planning (ERP) solution. A reasonable amount of evidence would be supplied that addresses the feasibility, usefulness, and practicality of Microsoft Dynamics 365.This research aimed to discover variables that impact ERP users in an ERP environment, with the intention of gaining a more detailed understanding of the end-user ERP output through a qualitative case study. It is important to recognise all of the influences on the stakeholders in the ERP management and in this study, the Microsoft Dynamic 365 (D365) was the target system. The study utilized a qualitative research framework that combines computational techniques and mathematical estimation for data collection and interpretation. The ERP data obtained are the data required for answering the study questions.The findings of this study show the importance of stakeholders and ERP Framework as well as ERP system such as D365 in promoting individual ERP successes. The researcher also looked at the views of stakeholders on the impact of system quality. This relationship was investigated from the viewpoints of the end-users, stakeholders. Understanding the relative value of the information system factors places an emphasis on the vital performance factors perceived by end consumers by organisations and suppliers. Ingeneral, the conclusion from the analysis is that the management of the supply chain in extended companies should not expect too much of an ERP system as eventually still needs various customizationwithin certain industries.This study has helped to reduce the discrepancy in the theory of stakeholders regarding the criteria for the selection of systems and methods for bread production in Malaysia, although some of the criteria and methods provided for in the theories might not be prominent in the real world. Practitioners tend to respect and comply with the requirements of the organisation over the more sophisticated ERP scheme.

Enterprise resource planning implementation within science and technology park (STP) organisations: an avenue for future research. A systematic review.

Background:Enterprise resource planning (ERP) is critical to enhancing the ability to control commercial activities and results in a competitive advantage when combined with an organisation's existing competitive advantages. However, our practise review reveals that end users resist ERP implementation because the resulting changes will alter the current status quo. The implementation of an ERP system in an organisation is complex as it affects multiple areas of the business. Resistance to change is cited as a factor of ERP failure.Methods:In this study, we conducted a systematic literature review using Transfield’s five stages and established a conceptual framework for ERP system implementation in science and technology parks (STPs). Articles collected from Emerald, Science Direct, ProQuest and Scopus databases between 1stJune 2021 and 15thJune 2021. Two authors were assigned to check the suitability of the articles in order to avoid risk of bias. Articles were analysed based on components of a research paper and the data was tabulated using MS Excel.Results:Only eight papers (0.011% of all the papers) appeared when we searched for papers related to ERP with a focus on post ERP Implementation, end-user behaviours, organisational performance, and the accelerated SAP (system application and product) methodology. We found that there are hardly any articles on ERP post implementations in STP context particularly based on the evaluation part of accelerated SAP. Conclusions:Results indicate the lack of studies in this field, particularly those addressing issues related to STP. This study attempted to broaden the understanding of the ERP's effectiveness, particularly in terms of an organisation's operational performance.

The influence of ERP system usage on agile capabilities

PurposeSynthesising theories of enterprise resource planning (ERP), psychological empowerment and agile capabilities, the purpose of this paper is to build and test a novel theoretical model linking ERP system usage with agile capabilities via users’ psychological empowerment in Jordanian commercial banks.Design/methodology/approachA questionnaire was developed to collect the relevant data based on the extant literature. The population of this study consisted of all ERP system users working at Jordanian commercial banks in Amman City. The questionnaire was circulated to a purposive sample of actual users of ERP systems for two reasons. First, it was not possible to obtain a list of actual ERP users in each bank, for security and privacy reasons. Second, actual users of ERP systems are the most relevant source of information.FindingsThe results revealed that ERP system usage has a significant positive impact on both agile capabilities and users’ psychological empowerment. The results also showed that users’ psychological empowerment has a significant positive impact on agile capabilities. In addition, the results provide empirical evidence that users’ psychological empowerment plays a mediating role between ERP system usage and all agile capabilities except responsiveness. Furthermore, by adding users’ psychological empowerment to the original research model, the study demonstrates a good predictive relevance for agile capabilities.Research limitations/implicationsThe study only focuses on Jordanian commercial banks; it is a cross-sectional study; and the study data were subjective, reflecting respondents’ opinion on specific time.Practical implicationsPractitioners struggle to ensure high levels of ERP usage by target users, to achieve implementation success and to achieve expected benefits. More often, practitioners have focused on the ERP system project team, vendors and technical issues, but have ignored the human side of the implementation process. Hence, they have failed to acknowledge the role of psychological empowerment in ERP system acceptance and success. Practitioners are advised to promote the ERP system as a facilitation and empowerment tool for users rather than a means of surveillance and control. Moreover, practitioners can avoid high rates of ERP failure in the adoption and post-adoption stages by changing the aim of the ERP system introduction from increasing efficiency and visibility to enhancing users’ psychological empowerment. Practitioners can leverage agile capabilities to respond to changes in the business environment by ensuring healthy psychological empowerment for all ERP users to use the system to its full capacity and to exchange information between functional units in real time. Practitioners must ensure users’ psychological readiness to use the system before the system goes live.Originality/valueThe study developed and tested a new research model using the SmartPLS approach in a novel context.

Ensuring quality in ERP implementations through testing components: an ISM approach

Enterprise resource planning (ERP) systems are software implementations in which the entire or most of the organisation's processes are brought under a uniform product suite. ERP implementations encompass not only software development which is mostly categorised as customisation but also configuration of the organisation's systems. If the organisation is implementing a pre-tested ERP system, then why does the question still arise about ERP failures and/or ERP implementations grossly going beyond time and budget calculations. The present research goes beyond discovering the CSF for ERP implementations and delves into factors that would help in ensuring overall quality of ERP implementations. The quality of ERP implementations has received lackadaisical research support. Nagpal et al. (2015b) prioritised and ranked the testing components with the help of analytic hierarchy process (AHP). The present study further explores the interrelationships between the testing components by utilising the interpretive structural modelling (ISM) and extends it by using total interpretive structural modelling (TISM) and cross-impact matrix-multiplication (MICMAC) approach.

Enterprise Resource Planning (ERP) Systems in Higher Education: A Deeper Look at Their Failures and the Way Forward

ERP systems are the life blood of institutions of higher education but however they require substantial investments to implement. Many institutions of higher education are not deriving the expected benefits from the ERP implementation due to ERP failures. The aim of the study was to critically examine the causes of ERP failures in higher education from the primary studies. The study used thematic synthesis to generate new concepts from the primary studies. The results that came from the inductive analysis were that the ERP technology is failing to be integrated in higher education; stakeholders requirements are not considered in ERP systems development and the productivity of the stakeholders are not being enhanced by the ERP systems. The study made the recommendation that there is need to identify critical stakeholders to be involved in requirements engineering to preclude ERP failures.

A Software Requirement Engineering Framework to Enhance Critical Success Factors for ERP Implementation

Requirement it's most critical success or failure factor for system. Enterprise Resource Planning (ERP) one of famous enterprise system and many studies focus on define CSF of it to reduce failing cases of ERP implementation and negative factors affecting not only on implementing company but also on the ERP vendors. Many papers have studied the CSF influence in ERP implementation but very little concern about requirement engineering (RE). This research will fill the gap by providing critical review and develop an approach in software system engineering framework by taking account feedback from stakeholders. This original approach is how to deal with ERP failure through a depth relation related to requirement engineering traceability to CSF in a system engineering view (SOS) based on ANSI EIA 632 standard.

Establishing an evidence-based 9D evaluation approach for ERP post-implementation

PurposeThe purpose of this paper is to propose a systematic and customisable framework, titled the 9D approach, aiming to evaluate the enterprise resource planning (ERP) systems as well as to identify potential socio-technical problems, misfits and deficiencies that can cause ERP failure during the system post-implementation phase.Design/methodology/approachThe proposed 9D ERP evaluation framework includes nine dimensions and 85 evaluation criteria. This theoretical framework is then used in a six-step evaluation process based on a mixed-methods design. A case study involving a large-size private company in China was used as an exemplification to illustrate how the proposed 9D approach can be applied in practices.FindingsThe findings of the study clearly demonstrated that after the ERP “go-live” point, companies still experience many challenges and problems in the post-implementation phase. These problems can be located in very diverse organisational, systemic and personnel aspects of the company, as well as across different functional areas and organisational levels. The proposed 9D approach was demonstrated to be an efficient and systematic tool to investigate and explore such ERP problems in an in-depth level within the organisational context.Research limitations/implicationsThis study contributes to the theory of IS evaluation in general, and provides valuable insights into the ERP post-implementation evaluation in particular.Practical implicationsThe proposed ERP evaluation approach forms a sound base for continuous ERP improvement and contributes to sustain seamless alignment between ERP and its organisational context. The customisable feature of the framework offers flexibility and enables its use by companies of all sizes, any sector, and any country.Originality/valueTo the best of the researchers’ knowledge, this is the most extensive and comprehensive framework for the post-evaluation of ERPs proposed hitherto. The need for this new framework was grounded on the argumentation of the drawbacks of existing ERP measurement and evaluation studies that simply focus on success rather than the more critical failure factors.

Peeking at the ERP Decline stage: Japanese empirical evidence

This research located and analyzed forty case studies in Japan related to Enterprise Resource Planning (ERP) switching, and specifically discussed the Decline stage of the ERP Life Cycle which has not been concerned enough in the academia. Qualitative data was mainly collected to answer the research questions fully. The results indicate the Decline stage does exist empirically. The prior studies explore the ERP failure cases which usually happen soon after the kickoff. This research finds empirical evident that both Large Enterprises (LEs) and Small and Medium Enterprises (SMEs) have experienced some kinds of declining in system performance and business performance, and had the urges and needs to retire or upgrade the current ERP system. Based on the findings, the causes of ERP termination, the two strategies which organizations adopted to deal with the current ERP systems, and the five events after the decision-making point were summarized and discussed. The findings also revealed three ambiguous issues that need more efforts. The results of this research fill up the blank in the ERP life cycle theory for more than one decade. The findings from a relatively large sample can also help practitioners and researchers to explore the shifting period more thoroughly and to build tools to solve current and potential problems in order to prepare and assist organizations.

CLOUD-BASED ERP FOR ARAB MANUFACTURING FIRMS

Enterprise Resource Planning (ERP) is a successful technique of integrating business processes to one computer system so that the information is easily available and accessible to everybody in the system. Even though the technique is successful and helps in reducing the lead times, inventory costs, labour costs, etc., the adoption rate is very low in Arab. This study focuses on the problem areas that Arab companies face while implementing ERP in their business processes. The study explores how ERP can be implemented successfully in Arab medium sized manufacturing firms and to understand why only some firms are able to implement ERP successfully, while others experience ERP failure. The study involves an empirical analysis to identify the issues and barriers in adopting ERP and outlines a research methodology to establish a novel framework to implement cloud-based ERP suitable for Arab manufacturing firms.

Developing Instruments for Enterprise Resources Planning (ERP) Post-Implementation Failure Model

Implementing Enterprise Resource Planning (ERP) projects in many organizations are faced with failure concept in recent years. Researchers focused to implement ERP projects successfully by proposing the success model. However, through these attentions to get ERP benefits, the ERP failure measurement model is required. Therefore, the aim of this study is to develop the instruments for ERP post-implementation failure measurement model. To achieve this outcome, the study firstly evaluates the suitability of Technology-Organization-Environment framework for the proposed conceptual model. Constructs were used for this model included two formative and six reflective constructs. A questionnaire was developed to test the validity and reliability of instrument items. A survey was conducted among Iranian industries to collect data and data analyzed by Smart PLS software. The results indicated that all instruments items included 37 critical risk factors (CRFs) as measurement were acceptable for the ERP post-implementation failure model.

(IN)EFFECTIVENESS OF ERP AT PRISTINE PACKAGING

Enterprise resource planning (ERP) software integrates all functional areas of an organization. It is a business process management software that provides an integrated view of core business processes using common databases. It enables real-time availability of information related to entire organization thus paving the way for faster and scientific decisions. However, ERP implementation and subsequent upgradation necessitate a significant quantum of resources which can take place only with sincere commitment from top management. Researches prove that more than 50% ERP implementation do not succeed due to various reasons i.e. people, process and technological. In majority of such failures, people and process issues cause more failure than technological reasons. Case '(In) Effectiveness of ERP at Pristine Packaging' highlights one such failed (at least partially) implementation in a medium scale manufacturing firm. Deeper analysis of case substantiates the above conclusion that predominant factors for ERP failure are people and processes. Case also raises questions as to what business and technical strategies can be adopted by the management of PPIP at this stage when new ERP i.e. Microsoft Dynamics exhibited only 20% improvement over the previous ERP - Microsoft Navision.

Risks affecting ERP post‐implementation

PurposeThe purpose of this paper is to identify, assess and explore potential risks that can affect long‐term viability of enterprise resource planning (ERP) systems in the post‐implementation and exploitation phase.Design/methodology/approachThe research took a large Chinese private group as a case study. A theoretical ERP risk ontology, which was adopted from the literature, was used to frame the study and generate data collection tools. Two questionnaires were thus designed and used to explore ERP post‐implementation risks in the case company.FindingsThe study identified 37 risk events, of which seven were identified as the most critical for ERP exploitation in the case company. The findings show that organisational and human‐related risks are the crucial factors for potential ERP failure and not the usually suspect technical risks.Research limitations/implicationsThis study contributes to the knowledge of ERP in general, and provides valuable insights into ERP post‐implementation risks in large companies in particular.Practical implicationsThe findings will not just be useful in supporting ERP risk identification and management in the large Chinese companies, but will also be beneficial to other large companies in general, which may be confronted with similar ERP exploitation challenges.Originality/valueThe majority of large companies in China and in the West have implemented ERP systems and engaged in the system post‐implementation phase. Most of the existing literature in the field focuses on the process of implementation. This paper looks forward to the risks involved in the post‐implementation phase. Understanding potential risks that may occur during ERP exploitation is vital for these large firms to achieve and sustain business success through their ERP systems.

A review of ERP implementation in India

The implementation of enterprise resource planning (ERP) systems has been the subject of in-depth discussion in the area of management of information systems. ERP systems play a vital role in the paradigm of business process reengineering in terms of small- to large-sized technological projects. Although many studies have been conducted on ERP implementation in organisations' belong to developed nations, very little research has been conducted in developing countries, especially in Indian organisations. Therefore, the goal of this paper is to review ERP implementation issues and failures in Indian organisations mainly focusing on critical success factors as well as issues in other countries. This paper also discusses ERP implementation challenges in India and overcoming the challenges. It also further focuses on success and failure stories of ERP implementation in India.

Explaining ERP Failure in Developing Countries: A Jordanian Case Study

Enterprise resource planning (ERP) systems are increasingly being adopted by organisations in developing countries. As in industrialised countries, this adoption seems beset by significant rates of failure, leading to a large waste of investment and other resources. This paper seeks to understand why ERP failure occurs. In doing this, it moves beyond the factor lists that have so-far dominated analysis. Instead, it makes use of the model. This conceptual framework aims to be comprehensive but also contingent; sensitive to the specific conditions of any individual client organisation. The design-reality gap model is applied to a case study of partial ERP failure in a Jordanian manufacturing firm. The model analyses the situation both before and during ERP implementation. It finds sizeable gaps between the assumptions and requirements built into the ERP system design, and the actual realities of the client organisation. It is these gaps – and the failure to close them during implementation – that underlie project failure. The paper draws conclusions about good practice in ERP implementation relating to both risk identification and risk mitigation, and offers examples of both specific and generic actions that can be undertaken. But it also notes challenges existing in some developing country contexts that may continue to constrain the effective use of enterprise resource planning systems.

ERP customization failure

PurposeThe paper aims to examine a detailed case study of enterprise resource planning (ERP) customization failure in an Egyptian state‐owned company (AML) by drawing on new institutional sociology (NIS) and its extensions. It explains how ERP customization failure is shaped by the interplay between institutionalised accounting practices, conflicting institutions, power relations and market forces.Design/methodology/approachThe research methodology is based on using an intensive case study informed by NIS, especially the interplay between conflicting institutions, power relations and market forces. Data were collected from multiple sources, including interviews, observations, discussions and documentary analysis.FindingsThe findings revealed that the inability of the ERP system to meet the core accounting requirements of the control authorities (the central agency for accountability) was the explicit reason cited for the ERP failure. The externally imposed requirements of the uniform accounting system and planning budgets were used to resist both other institutional pressures (from the holding company for engineering industries) and market and competitive pressures.Research limitations/implicationsThere are some limitations associated with the use of the case study method, including the inability to generalize from the findings of a single case study, some selectivity in the individuals interviewed, and the subjective interpretation by the researchers of the empirical data.Practical implicationsThe paper identifies that the interplay between institutional pressures, institutionalised accounting practices, intra‐organizational power relations, and market forces contributed to the failure to embed ERP in a major company. Understanding such relationships can help other organisations to become more aware of the factors affecting successful implementation of new ERP systems and provide a better basis for planning the introduction of new technologies.Originality/valueThis paper draws on recent research and thinking in sociology, especially the development and application of NIS. In addition, the paper is concerned with ERP implementation and use and management accounting in a transitional economy, Egypt, and hence contributes to debate about exporting Western accounting practices and other technologies to countries with different cultures and different stages of economic and political development.

Measuring User Satisfaction and Perceived Usefulness in the ERP Context

Initially, Enterprise Resource Planning (ERP) systems held the promise of easily integrating all processes within and around the organization. Many reported ERP failures have led us to conduct, within the context of ERP implementation, an empirical examination of two success indicators: user satisfaction and perceived usefulness. The results reveal high levels of user satisfaction and perceived usefulness, both in nominal values and in comparison to other systems. They also show a strong correlation between perceived usefulness and user satisfaction, suggesting that perceived usefulness is one of the factors affecting user satisfaction with ERP systems. On the other hand, hypotheses testing revealed no supporting evidence for possible relationships between user satisfaction or perceived usefulness and organizational characteristics such as the department to which the respondent belonged or user characteristics such as organizational level, education, age, computing experience, and gender.

ERP implementation failures in China: Case studies with implications for ERP vendors

Chinese enterprise resource planning (ERP) vendors have been able to defend the challenge from global ERP leaders such as SAP and Oracle. This article seeks possible reasons for major international ERP vendors not being able to dominate the Chinese ERP market. Taking an ensemble view of technology, we conceptualize ERP systems as being embedded in complex social contexts, which heavily influence ERP implementation and use. Based on this conceptualization, we contend that a historical perspective and a social-cultural perspective can offer a rich understanding on ERP implementations in China. From the historical perspective, this paper describes China's ERP evolution and compares it with the ERP evolution in Western countries. From the social-cultural perspective, five cases in which foreign ERP vendors have failed in their Chinese implementations are presented and analyzed. Eight factors are identified which have contributed to ERP failure. Implications of the findings for future ERP implementations in China are discussed.