Enterprise Resource Planning System Success Research Articles

ERP system usage: the role of control and empowerment

Organisations have made significant investments in enterprise resource planning (ERP) systems with the strategic expectation that employees will utilise this technology to enhance organisational performance. However, research indicates that ERP systems are underutilised. In order to disentangle the challenge of underutilisation, this paper addresses the impact of organisational control and empowerment on infusion—the deep and comprehensive usage of an information system. Moreover, it also tests whether infusion will lead to higher levels of ERP system success. Data from a sample of 260 matched pairs of ERP system users and their supervisors were collected and analysed. Results indicate that empowerment is positively related with infusion, whereas an inverted u-relationship has been found for organisational control. The critical link between infusion and ERP system success was found as well, meaning that the more users utilise the system to its fullest extent, the more likely the organisation is to attain ERP systems' promised benefits.

Factors Influencing the Success of an ERP System: A Study in the Context of an Agricultural Enterprise in Thailand

The study examined factors in user satisfaction with ERP implementation pig farming and processing organization in northern Thailand. The target population included ERP users and government advisers involved with its implementation. A theoretical model with six determinants (Business Process of Reengineering, Top Management Support, Education and Training, Information Quality, System Quality and Perceived Usefulness) of User Satisfaction was developed. Data was collected using a questionnaire (n =228). From a theoretical perspective the findings supported most of those in previous studies whereby Top Management Support had the greatest effect on User Satisfaction followed in order by Perceived Usefulness, System Quality, and Information Quality while Business Process Reengineering and Education and Training had relatively small effects on User Satisfaction. New findings showed that contrary to those in previous studies: Top Management Support and Education and Training did not have significant effects on System Quality; Business Process Engineering only had significant indirect effects on Perceived Usefulness and User Satisfaction; and Education and Training only had a significant indirect effect on User Satisfaction. From a practical perspective the findings enabled the formulation of a hierarchy of objectives aimed at increasing user satisfaction each with an associated hierarchy of actions. Key Words: Enterprise resource planning (ERP); Critical success factors (CSF); Information and system quality and net benefits

Enhancing Functional Fit with Continuous Training During the ERP Post-Implementation Phase

Enterprise Resource Planning (ERP) systems, such as SAP, feature a rich set of integrated business applications. However, to maximize the long term benefits from ERP implementations, organizations need to careful manage the post-implementation phase and focus on supporting end users to achieve better fit between their business processes and the ERP system features. This study develops a research model based on the resource-based view (RBV) of the firm and finds support for a positive and complementary relationship between continuous training resources, functional fit capability and business process success. An increase in continuous training resources increases the functional fit capability for the organization and is seen to improve business process success. The results support the need to focus on continuous end user training throughout the post implementation phase as a key contributor to ERP systems success for any organization.

Implementation critical success factors (CSFs) for ERP: Do they contribute to implementation success and post-implementation performance?

Abstract Frequent commentaries in the literature have stated that certain critical success factors (CSFs) have to be accomplished in an organisation for an enterprise resource planning (ERP) system project to be successful. In this study we argue and demonstrate empirically that success in implementing an ERP system and in gaining performance improvement should be conceptualised as two separate dependent variables. The distinction is made because the former aspect is based upon project delivery outcomes, while the latter assesses post-ERP project performance. We question whether some factors labelled as ‘critical’ success factors for ERP projects are in practice actually critical for achieving success in implementation and improving output performance. To examine this we report an empirical study that has investigated whether four major CSFs are in practice critical for achieving organisational performance improvements, and the role that successful implementation may play in influencing the relationship between CSFs and improvements in organisational performance. A conceptual model was devised and then analysed using structural equation modelling based on data collected from 217 organisations. We found that some CSFs were not critical to achieve success in ERP implementation but were critical to help an organisational achieve performance improvement from an ERP system. Additionally, we also found that achieving successful ERP system implementation mediates the degree to which a CSF affects output performance improvement. The managerial and research implications of these findings are discussed and the limitations of the study noted.

A Case Study on the Impact of Customization, Fitness, and Operational Characteristics on Enterprise-Wide System Success, User Satisfaction, and System Use

Enterprise resource planning (ERP) system success is of paramount importance for almost all organizations, as it is a prerequisite for improved and continuous benefit-realization. This study investigates the impact of ERP business dynamics (i.e., system customization required), system fitness (i.e., process fit, data fit, and user interface fit) and functional area operational characteristics on ERP system success, user satisfaction and system use. The author draws on relevant theoretical background information to construct the research model. Surveys are administered to 91 ERP system users within a multinational food company; in-depth interviews are also conducted with some system users. Empirical results indicate that the amount of ERP system customizations and/or modifications does not have any substantial impact on ERP system use or user satisfaction. In terms of ERP system fitness, these systems are found to be more suitable for complex, functional-area operational environments. The results show that only user interface fit positively affects ERP system use, while only process fit positively influences ERP system user satisfaction. In addition, different degrees of information quality, system quality and service quality have diverse effects on some of the relationships investigated. Finally, the perceived net benefit from an ERP system depends on how the ERP system is used, rather than the management level of the users.

The mediating effect of organizational culture and knowledge sharing on transformational leadership and Enterprise Resource Planning systems success: An empirical study in China

Senior leadership has been identified as a critical factor in fostering Enterprise Resource Planning (ERP) systems success, however, the specific impact mechanism of transformational leadership on ERP success is still largely unknown. Based on organizational culture theory and knowledge based view, this study developed a theoretical model to explore the mediating effect of organizational culture and knowledge sharing on transformational leadership and ERP success. Data was collected from 115 IS executives and 413 ERP end users in 115 organizations in China. Partial Least Squares (PLS) analysis results suggest that transformational leadership is directly related with all the four types of organizational culture – development culture, group culture, hierarchical culture and rational culture, and is indirectly related with knowledge sharing and ERP success. Specifically, development culture has direct impact on ERP success, while hierarchical culture, group and rational culture are indirectly related with ERP success, mediated by explicit and tacit knowledge sharing. The research findings can provide guidelines for the top executives to facilitate appropriate organizational culture, so as to foster ERP knowledge sharing and achieve business benefits with the assimilation of ERP systems.

Successful product or successful system? User satisfaction measurement of ERP software

Most software projects are largely undertaken with a focus on developing successful products rather than successful systems. For example, enterprise resource planning (ERP) products are generally developed in isolation from other system components like people, information or existing business processes. This paper applies the human-centred approach in studying the design of SAP-ERP system and measuring its user satisfaction. The objective of the paper is to explore the relationship between the human-centred dimensions (process, syntactic, semantic, social and pragmatic) and the user satisfaction on SAP-ERP system. This paper attempts to answer two questions: what human-centred model can provide a systematic and successful ERP system? And what methodology can be used for validating this model and how can it be applied for evaluating user satisfaction? The contributions of the paper are to address the need for the human-centred approach as a basis for the design of ERP system, to define a systematic human-centred model for measurement towards user satisfaction. This paper suggests the application of a proposed five dimensional model in measuring the human-centredness of SAP-ERP system and embarks a case study to conduct quantitative analysis. In conclusion the paper suggests an urgent and immediate need to develop scientific and engineering methodologies for designing, building, and analysing complex systems that centre on fundamental forms of human activity, supported by computer and communication technology.

A comprehensive study of the relationship between enterprise resource planning selection criteria and enterprise resource planning system success

We developed a conceptual framework for investigating how ERP selection criteria are linked to system quality and the service provided by suppliers and consultants, and thus how these influenced ERP implementation success. Through a cross-sectional survey of the top 5000 largest companies in Taiwan, using a balanced scorecard concept and path analysis, we showed that four system selection criteria (consultant's suggestion, a certified high-stability system, compatibility between the system and the business process, and the provision of best practices) were positively related to system quality. Three supplier selection criteria (international market position, training support by the supplier and supplier technical support and experience) had a significant influence on supplier service quality, and two consultant selection criteria (consultant's ERP implementation experience in a similar industry and consultant's support after going live) were related to consultant service quality. However, we found that most organizations did not consider all these criteria when implementing ERP systems. Our study also suggested that enhanced system quality and service quality could increase user perspective and ERP success.

Examining the influences of external expertise and in-house computer/IT knowledge on ERP system success

External expertise and adequate levels of internal computer skills and knowledge are essential factors that can contribute to the success of complex information technology (IT) systems, including enterprise resource planning (ERP). Studies examining the effects of external expertise and in-house or internal computer/IT knowledge on the success of ERP packages are rare. This present study was designed to fill this gap in research. A relevant research model was developed to test fifteen (15) hypothesized paths or relationships among the study's variables. Data was collected in a cross-sectional field survey of 109 firms in two European countries. The partial least squares (PLS) technique was used for data analysis. The PLS results supported eleven (11) out of the fifteen (15) hypotheses. Essentially, this research's results confirmed that external expertise (an exogenous factor) and internal computer/IT knowledge (endogenous factors) are pertinent to success enhancement of ERP system success for adopting organizations. The implications of the findings for both practice and research are discussed, and possible areas of future research identified.

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

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.

Critical Success Factors for Enterprise Resource Planning System Implementation: A Case Study in Malaysian SME

Implementing Enterprise Resource Planning (ERP) system for Malaysian Small to Medium Enterprises (SMEs) is not just a technological challenge. It is a socio-technological endeavour which mandates modifying existing applications and redesigning business processes to facilitate ERP system implementation. Most Malaysian SMEs cannot afford to adopt an existing ERP system due to the extremely high cost and complex implementation. The ERP system implementation literature contains many case studies of organizations that have implemented ERP system successfully. However, many Malaysian SMEs do not achieve success in their ERP system implementation. There are very few studies have represented and developed critical success factors of ERP system implementation projects highlighted for SMEs. This research seeks to explore the critical success factors for successful ERP system implementation in Malaysian SMEs. The research method is based on a case study within Malaysian SME to perform a critical success factors model of ERP system implementation adoption which has validated by a number of SMEs in Malaysia. The proposed model will help outline the critical factors that should be considered by Malaysian SMEs in uccessfully adopting ERP system.

Relationships among ERP post-implementation success constructs: An analysis at the organizational level

Enterprise resource planning (ERP) systems implementation success factors have been widely researched; however, few have investigated ERP post-implementation success in organizational contexts. The paucity of research into ERP system success evaluations partly motivates this research. To that end, the objective of this study is twofold. First, it primarily investigates the relationships among six constructs or dimensions in a respecified ERP system success measurement model, which was developed from prior relevant frameworks. Second, this research adds to the body of knowledge in the information system (IS) success evaluation domain, especially with its focus on ERP packages. The extended ERP system success model was tested using data collected in a cross-sectional field survey of 109 firms in two European countries. Structural equation modeling (SEM) was used to test six relevant hypotheses. The SEM results showed that five out of the six hypotheses have significant, positive associations. Namely, the constructs of System Quality, Service Quality, Individual Impact, Workgroup Impact, and Organizational Impact have strong relevance in ERP success conceptualization, whereas Information Quality does not, at least, in the context of our data. The pertinence of the study’s findings for IS success evaluation as well as its implications for practice and research are discussed.

An investigation into the effects of IS quality and top management support on ERP system usage

Enterprise resource planning (ERP) systems are developed to manage and integrate business processes across organisational functions and locations. Given the growing importance of ERP deployment, a better understanding of influences on successful ERP system implementation is essential for knowledge advancement. Based on previous IS success literature, this study develops an empirical model to examine the effects of IS quality (information and system quality) and top management support on ERP system usage. The proposed model was tested using survey data from large Taiwanese corporations. The results show that information and system quality directly or indirectly affect ERP system usage through user perceptions of usefulness and satisfaction with the ERP system. Additionally, top management support influences both perceived usefulness and ERP system usage. Results of this study contribute to efforts to identify the factors that measure ERP system success. The implications for theory and practice and future research directions are discussed.

Organisational culture and IT resources impacts on ERP system success: an empirical investigation

A review of the literature shows that few have investigated the relationships among organisational culture, information technology (IT) resources, on the one hand and enterprise resource planning (ERP) system success, on the other. This study is designed to fill this gap in research. Surveys were conducted for two Northern European countries. Respondents from 44 private and industrial organisations provided data for analysis. A conceptualised model was developed to test two hypotheses examining the influences of the firm's culture and IT resources on ERP success. The data showed that both organisational culture and the availability of IT resources are positively related to the success of ERP for adopting firms. Of note is the fact that the IT resources construct was seen to be more significant in ensuring higher levels of success with the application than the culture of the adopting organisation.

Developing ERP Systems Success Model for the Construction Industry

Recently, a significant number of major construction companies embarked on the implementation of integrated information technology solutions such as enterprise resource planning (ERP) systems to better integrate various business functions. However, these integrated systems in the construction sector present a set of unique challenges, different from those in the manufacturing or other service sectors. There have been many cases of failure in implementing ERP systems in the past, so it is critical to identify and understand the factors that largely determine the success or failure of ERP implementation in the construction industry. This paper presents the process of developing an ERP systems success model to guide a successful ERP implementation project and to identify success factors for ERP systems implementation. The paper identifies factors associated with the success and failure of ERP systems, and develops a success model to analyze the relationships between key factors and the success of such systems. The proposed ERP systems success model adapts the technology acceptance model and DeLone and McLean’s information systems success model and integrates those with key project management principles. The goal of the ERP systems success model is to better evaluate, plan, and implement ERP projects and help senior managers make better decisions when considering ERP systems in their organization.

Managing ERP Implementation Failure: A Project Management Perspective

<para xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink"> Information technology (IT) projects are susceptible to changes in the business environment, and the increasing velocity of change in global business is challenging the management of enterprise systems such as enterprise resource planning (ERP). At the same time, system success depends on the rigor of the project management processes. Scope creep, poor risk management, inadequate allocation of human resources over time, and vendor management are some common problems associated with the implementation of an enterprise system. These issues pose threats to the success of a large-scale software project such as ERP. This research adopts a case study approach to examine how poor project management can imperil the implementation of an ERP system. Having learned the lessons from the failure of its first ERP implementation, the company in this case reengineered its project management practices to successfully carry out its second ERP implementation. Many critical project management factors contributed to the failure and success of this company's ERP system. This study explores and identifies critical elements of project management that contributed to the success of the second ERP implementation. For those organizations adopting ERP, the findings provide a roadmap to follow in order to avoid making critical, but often underestimated, project management mistakes. </para>

Interactions between contingency, organizational IT factors, and ERP success

PurposeThe purpose of this paper is to examine the impact of some organizational information technology (IT) factors (i.e. IT assets, employees' IT skills, IT resources, and satisfaction with legacy IT systems) and their interacting effects with two contingency factors (i.e. organization's size and structure) on enterprise resource planning (ERP) system success.Design/methodology/approachSurveys were conducted in two European countries. Respondents came from diverse, private, and industrial organizations. Relevant hypotheses were developed and tested using a structural equation modeling technique.FindingsThe analysis supported – partially or fully – six of the eight hypotheses formulated. For example, the data indicated strong positive relationships between IT assets and IT resources, on the one hand, and ERP success, on the other. Organization's size and structure were also found to be moderators in some of the relationships. Also, the analysis revealed that satisfaction with legacy IT systems increased with ERP success, which was an unexpected finding.Originality/valueThis study contributes to the literature, being among the few to investigate the effects of organizational IT factors and their interacting effects with relevant contingency factors in the context of ERP system success. Methodologically, the study utilized a “non‐deterministic” model to facilitate deeper insights into the effects of variables.

The effects of organizational citizenship behaviors on ERP system success

Although the research on organizational citizenship behaviors (OCBs) has increased dramatically in diverse fields during the past decade, little is known about the OCBs in the information systems area. The purpose of this study was to explore the effect of OCBs on enterprise resource planning (ERP) system success. In order to perform empirical analyses, measurements on the OCBs constructs based on the five dimensions of [Organ, D.W. (1988). Organizational citizenship behavior: The “Good Soldier” syndrome. MA: Lexington Books]: altruism, conscientiousness, courtesy, civic virtue, and sportsmanship were developed, and the research model including the relationships between the OCBs constructs and ERP system success variables of information quality, work efficiency, and intention of IT innovation was proposed and empirically analyzed using structural equation modeling. The contribution of this study is to provide strategic insights for successfully managing ERP systems by identifying the effects of organizational citizenship behaviors in ERP context.

Analyzing Enterprise Resource Planning System Implementation Success Factors in the Engineering–Construction Industry

Enterprise resource planning (ERP) systems offer many benefits to the engineering–construction industry. Many construction firms recognize the benefits of ERP system implementation; however, they still hesitate to adopt these systems due to high cost, uncertainties, and risks. This study identifies and analyzes critical factors that need to be considered to ensure successful ERP system implementation in the construction industry. First, this paper identifies the factors associated with the success and failure of ERP systems, and provides indicators to evaluate the success of such systems. Then, the paper develops an information system success model to analyze the relationships between factors and success indicators. Finally, the paper provides recommendations for successful ERP systems based on the analysis. The derived success factors should help senior managers in construction firms make better decisions and improve their business value by implementing the most effective EPR systems.

Impacts of business vision, top management support, and external expertise on ERP success

PurposeThe purpose of this paper is to investigate the impact of such contingency factors as top management support, business vision, and external expertise, on the one hand, and enterprise resource planning (ERP) system success, on the other.Design/methodology/approachA conceptual model was developed and relevant hypotheses formulated. Surveys were conducted in two Northern European countries and a structural equation modeling technique used to analyze the data.FindingsIt was found that the three contingency factors positively influence ERP system success. More importantly, the relative importance of quality external expertise over the other two factors for ERP initiatives was underscoredOriginality/valueIt is argued that ERP systems are different from other information technology implementations; as such, there is a need to provide insights as to how the aforementioned factors play out in the context of ERP system success evaluations for adopting organizations. As was predicted, the results showed that the three contingency factors positively influence ERP system success. More importantly, the relative importance of quality external expertise over the other two factors for ERP initiatives was underscored. The implications of the findings for both practitioners and researchers are discussed.