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Critical Success Factors in ERP Implementation

Success: A Literature Review and Model


Development
By: Tammy Bahmanziari
September 15, 2004
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Critical Success Factors in ERP Implementation
Success: A Literature Review and Model
Development
Abstract
This paper reviews the recent empirical research in ER
!Enterprise Res"#rce lannin$% implementati"n& The p#rp"se "'
this paper is t" (evel"p a parsim"ni"#s m"(el "' ER
implementati"n s#ccess by i(enti'yin$ an( cate$"rizin$ the critical
s#ccess 'act"rs !)S*s% that have been empirically teste( in the
literat#re& This research res#lts in the pr"p"sal "' a parsim"ni"#s
m"(el "' )S*s in ER implementati"n& The paper is s#pp"rte(
with tables an( appen(ices t" ease 'amiliarizati"n "' the rea(er
with the s#b+ect matter an( t" serve as a re'erence '"r '#t#re
research& The paper incl#(es an ann"tate( bibli"$raphy "' the
research reviewe( in the (evel"pment "' this paper&
,eyw"r(s: Enterprise Res"#rce lannin$, ER, ER
implementati"n s#ccess, critical s#ccess 'act"rs, )S*s, acc"#ntin$
in'"rmati"n systems
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Critical Success Factors in ERP Implementation Success
Introduction
)ritical s#ccess 'act"rs !)S*s% in the implementati"n "' ER systems have been a t"pic
"' c"ncern '"r practiti"ners an( aca(emic researchers in the last 'ew years& Alth"#$h a
n#mber "' st#(ies have been p#blishe( that i(enti'y these 'act"rs, it is imp"rtant t"
s#mmarize an( synthesize the c#rrent state "' the literat#re in "r(er t" create a
parsim"ni"#s m"(el "' )S*s in ER implementati"n s#ccess& This paper is an attempt t"
create s#ch a m"(el&
Sch"lars in the acc"#ntin$ in'"rmati"n systems area a(v"cate the inv"lvement "' the
acc"#ntin$ pers"nnel in the systems analysis an( (esi$n "' new acc"#ntin$ in'"rmati"n
systems& -ne "'ten cite( reas"n '"r this imperative is the ability "' the acc"#ntant t"
inte$rate c"ntr"ls int" the acc"#ntin$ system 'r"m the (evel"pment sta$e& The
acc"#ntant has a veste( interest in the s#ccess'#l implementati"n "' the acc"#ntin$
system& This is als" tr#e in the implementati"n "' ER systems& This paper is m"tivate(
by the nee( "' acc"#ntants t" #n(erstan( the 'act"rs critical t" the s#ccess'#l
implementati"n "' the ER systems an( the meas#res #se( t" i(enti'y s#ccess& The
remain(er "' this paper (isc#sses the bene'its "' ER, the cate$"ries "' )S*s, the
meas#res #se( t" (e'ine implementati"n s#ccess an( m"(el (evel"pment&
.
Evidence of the benefits of ERP to the organization
Several "' the st#(ies (isc#sse( in this paper p#rp"rt bene'its t" "r$anizati"ns 'r"m the
implementati"n "' ER systems& The tra(e an( aca(emic literat#re c"ncernin$ ER is
'ille( with rep"rts "' the s#ccess an( 'ail#re "' ER implementati"ns& /"wever, (espite
the apparent ris0 "' 'ail#re, an( the acc"mpanyin$ 'inancial ris0, c"mpanies have t#rne(
c"nsistently t" ER systems t" $ain a(vanta$es perceive( in its #se& -bvi"#sly, these
c"mpanies have i(enti'ie( vari"#s reas"ns '"r the implementati"n that 'it, h"pe'#lly, with
l"n$1term strate$ic $"als "' the c"mpany&
The meas#rement "' the bene'its "' the ER implementati"n in m"st st#(ies is (epen(ent
#p"n the percepti"ns "' the mana$ement, #sers, c"ns#ltants, an( "thers in the
"r$anizati"n& A table sh"win$ the (epen(ent variables #se( in the research st#(ies
incl#(e( in this paper is pr"vi(e( in Table 1&& Three st#(ies i(enti'ie( in this research
#se( c"nstr#cts t" meas#re the s#ccess "' the implementati"n an( bene'its t" the 'irm that
(i( n"t (epen( "n the percepti"n "' sta0eh"l(ers within the "r$anizati"n& These
c"nstr#cts were mar0et price !/ayes et al 2001%, 'irm per'"rmance !/#nt"n et al& 200.%
an( 'inancial analysts2 earnin$s pre(icti"ns !/#nt"n et al& 2002%&
/ayes et al& !2001% investi$ate( h"w the capital mar0ets resp"n(e( t" 'irms2
ann"#ncements "' ER implementati"n& The p#rp"se "' this st#(y was t" (etermine i',
empirically, the ER was e3pecte( t" a(( val#e t" the "r$anizati"n& This was the 'irst
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st#(y t" #n(erta0e this type "' empirical testin$ "' the val#e t" the "r$anizati"n "' ER&
The research '"#n( that the mar0et (i( react si$ni'icantly an( p"sitively "verall t" the
ann"#ncement "' the ER implementati"n '"r the sample 'irms& *"r small4#nhealthy
'irms, h"wever, the reacti"n "n the mar0et ret#rn was ne$atively& The a#th"rs e3plaine(
that the c"st "' the ER implementati"n was pr"bably c"nsi(ere( pr"hibitive '"r
#nhealthy 'irms s#ch that they w"#l( have a (i''ic#lt time rec"verin$ (#e t" their p""r
health&
/#nt"n et al& !200.% e3amine( the l"n$it#(inal impact "' ER a("pti"n "n 'irm
per'"rmance& The a#th"rs pr"p"se( that the l"n$1term 'inancial per'"rmance "'
c"mpanies that (i( n"t a("pt ER w"#l( be l"wer than the 'inancial per'"rmance "'
th"se c"mpanies that a("pt ER& *inancial per'"rmance was meas#re( #sin$ '"#r
n#mbers: ret#rn "n assets, ret#rn "n sales, asset t#rn"ver an( ret#rn "n investment&
5sin$ re$ressi"n analysis, the res#lts in(icate( that the ER a("ptin$ 'irms ha( sli$htly
better per'"rmance than n"na("pters& The a#th"rs '"#n( a p"sitive relati"nship between
'irm per'"rmance an( 'irm size an( 'inancial health&
/#nt"n et al& !2002% investi$ate( the e3tent t" which invest"rs believe that ER systems
enhance 'irm val#e by e3aminin$ chan$es in 'inancial analysts2 earnin$s pre(icti"ns
be'"re an( a'ter they receive an ann"#ncement that a 'irm plans t" implement an( ER
system& Tw" c"nte3t#al 'act"rs, 'irm size an( 'irm health are pr"p"se( t" m"(erate the
relati"nship between ann"#ncement "' the implementati"n plans an( the analysts2
earnin$s pre(icti"ns& The e3perimental res#lts sh"w that ER a("pti"n ann"#ncements
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have a si$ni'icant p"sitive e''ect "n earnin$s pre(icti"ns& There'"re, the a#th"rs
c"ncl#(e that the analysts perceive( that the ER system will reap p"sitive bene'its t" the
c"mpany&
These st#(ies hi$hli$ht the bene'its "' an ER implementati"n t" the mar0et& The
bene'its are (epen(ent #p"n the s#ccess'#l implementati"n "' the s"'tware& The
'"ll"win$ secti"n "' the paper (isc#sses the critical s#ccess 'act"rs that have been
i(enti'ie( thr"#$h empirical aca(emic st#(ies in the literat#re& These 'act"rs are arran$e(
in a 'inal m"(el that can be #se( t" help $#i(e '#t#re research in this area& !See Appen(i3
A%
Critical success factors
Several st#(ies i(enti'ie( as empirical analysis "' the ER implementati"n pr"cess are
s#mmarize( an( analyze( in this paper& The main p#rp"se "' this paper is t" create a
m"(el "' the 'act"rs a''ecte( the s#ccess'#l implementati"n "' ER that have been
empirically teste( in the aca(emic literat#re& The res#ltin$ m"(el, presente( in Appen(i3
A, ("es n"t incl#(e all the 'act"rs #se( in the reviewe( literat#re b#t ("es incl#(e a
ma+"rity "' them& The 'act"rs teste( in these st#(ies have been "r$anize( int" cate$"ries
base( "n c"mm"n characteristics& These cate$"ries are the envir"nment !c#lt#ral an(
str#ct#ral aspects%, ER s"'tware characteristics, 'irm characteristics, implementati"n
team characteristics, characteristics "' t"p mana$ement, the implementati"n pr"cess an(
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characteristics "' en(1#sers& A s#mmary "' the cate$"ries an( the speci'ic 'act"rs #n(er
each cate$"ry al"n$ with the st#(ies in which this 'act"r is teste( empirically are incl#(e(
in Table 1& *"r m"re speci'ic in'"rmati"n "n a partic#lar st#(y, Appen(i3 B incl#(es an
ann"tate( bibli"$raphy an( Table 2 s#mmarizes the res#lts "' the tests "' )S*2s #se( in
each st#(y in the literat#re review alphabetically an( "#tlines the speci'ic s#ccess
meas#res #se(& Each "' these )S* cate$"ries is (isc#sse( bel"w al"n$ with the
empirical 'in(in$s&
Cultural aspects of the environment
The 'act"rs that are present in the envir"nment are "' tw" types: c#lt#ral an( str#ct#ral&
The c#lt#ral aspects, (isc#sse( here, enc"mpass th"se 'act"rs that are #ni7#e t" c"rp"rate
c#lt#re& The str#ct#ral aspects "' the envir"nment, (isc#sse( in the ne3t secti"n, are
th"se that are c"ncerne( with 'act"rs in the envir"nment n"t l"$ically tie( t" c"rp"rate
c#lt#re b#t m"re in(icative "' the speci'ic in(#stry "' the 'irm "r mar0et c"n(iti"ns&
The critical s#ccess 'act"rs !)S*s% incl#(e( #n(er envir"nment4c#lt#ral aspects are
c#lt#ral imp"rtance "n trainin$ an( systems, resistance t" chan$e, c#lt#ral rea(iness,
"pen an( h"nest c"mm#nicati"n, e3pectati"ns an( s"cial c"mmitment& The c#lt#ral
imp"rtance place( "n trainin$ an( the imp"rtance "' systems in emp"werin$ the
"r$anizati"n was incl#(e( as )S*s in a st#(y rep"rte( by ,r#mbh"lz et al& !2000%& This
st#(y i(enti'ie( these )S*s an( "thers in a st#(y "' the e''ect "' (i''erin$ nati"nal c#lt#re
an( c"rp"rate c#lt#re "n the s#ccess'#l implementati"n "' ER&
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Resistance t" chan$e is an imp"rtant )S* '"r an ER implementati"n& Several st#(ies
have i(enti'ie( this 'act"r as in'l#ential in "r$anizati"nal s#ccess in ER implementati"n&
!9#pla$a an( Astani, 200.: /"n$ an( ,im, 2002: an( alaniswamy, 2002% Resistance t"
chan$e is the nat#ral inertia inherent in "r$anizati"ns& ;n 9#pla$a an( Astani !200.%, .0
percent "' the resp"n(ents t" the s#rvey 7#esti"ns resp"n(e( that they 'elt that resistance
t" chan$e was a ma+"r pr"blem in their implementati"n e''"rt& /"n$ an( ,im !2002%
#se( resistance t" chan$e, calle( "r$anizati"nal resistance in their st#(y, as a m"(erat"r
between "r$anizati"nal 'it an( ER implementati"n s#ccess& They (e'ine(
"r$anizati"nal resistance as res#ltin$ 'r"m resistance (#e t" +"b chan$es an( #ncertainty
"' the new system& /"n$ an( ,im !2002% '"#n( that resistance t" chan$e, am"n$ "thers,
was "ne "' the main impe(iments t" ER implementati"n s#ccess&
-pen an( h"nest c"mm#nicati"n was a si$ni'icant )S* in tw" st#(ies& !<ah et al&, 200.:
an( Sar0er an( =ee, 200.% -'ten, "penness an( h"nest c"mm#nicati"n "cc#rs in
c"rp"rate c#lt#res where tr#st between mana$ement an( empl"yees is str"n$& Sar0er an(
=ee !200.% i(enti'ie( "pen an( h"nest c"mm#nicati"n as s"cial enablers that in'l#ence
s#ccess'#l ER implementati"n& They (e'ine( it as "pen an( h"nest c"mm#nicati"ns at
all levels "' the mana$ement an( #sers an( all phases "' the pr"+ect&
An"ther c#lt#ral envir"nmental 'act"r i(enti'ie( in the literat#re re'ers t" #nrealistic
e3pectati"ns an( ten(ency t" en(#re escalati"n "' c"mmitment& !S#mner, 2000% The
presence "' #nrealistic e3pectati"ns an( the ten(ency t" escalati"n "' c"mmitment is
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in(icative "' the inability t" rec"$nize an( s"lve pr"blems& !S#mner, 2000% )learly,
ER implementati"ns will lea( t" vari"#s pr"blems in the c"#rse "' implementati"n an(
the inability t" rec"$nize an( 'i3 th"se pr"blems is a ma+"r impe(iment t" s#ccess&
Structural aspects of the environment
Str#ct#ral aspects were i(enti'ie( in several st#(ies& ;n s"me in(#stries, c"mpetitive
press#re is an imp"rtant 'act"r in m"tivatin$ 'irms t" implement ER systems& !Bra('"r(
an( *l"rin, 200.% This 'act"r is imp"rtant in 0eepin$ "r$anizati"ns m"tivate( (#rin$ the
implementati"n pr"cess an( th#s is an imp"rtant 'act"r in s#ccess&
The lac0 "' ;T pers"nnel, b#siness e3perts an(4"r empl"yee t#rn"ver within the
"r$anizati"n was )S*s i(enti'ie( in several st#(ies& !Ala(wani, 2002: 9#pla$a an(
Astani, 200.: ?ar0#s et al&, 2000: alaniswamy, 2002: R"bey et al&, 2002: an( S#mner,
2000% These three 'act"rs in(icate $eneral lab"r mar0et ti$htness in these areas an( are
representative "' a special c"ncern in s"me envir"nments& @ith"#t pr"per pers"nnel, the
ER implementati"n is (i''ic#lt t" acc"mplish&
Characteristics of the software
The characteristics "' the s"'tware are imp"rtant t" s#ccess'#l implementati"n&
)"mpanies m#st be care'#l t" c"mpare the capabilities "' the s"'tware pac0a$e #n(er
c"nsi(erati"n '"r a("pti"n t" the speci'ic nee(s "' the c"mpany& @hile there are a
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han('#l "' s"'tware ven("rs that p"p#late the t"p sellers in the ER system sales !e&$&
SA, e"ples"'t, an( B&9& E(war(s%, there are a pleth"ra "' ven("rs available&
9i''erences in these (i''erent s"'tware pr"(#cts can have ma+"r e''ects "n the s#ccess'#l
implementati"n "' the ER&
)"mple3ity "' the s"'tware was a ma+"r c"ncern in several st#(ies& !A(am an(
-29"herty, 2000: Bra('"r( an( *l"rin, 200.: *rancalanci, 2001: arr an( Shan0s, 200.:
Ribbers an( Sch"", 2002: R"bey et al&, 2002: an( S#mner, 2000% The c"mple3ity "' the
ER s"'tware inhibits the ability "' the #sers an( implementers t" #n(erstan( an(
inc"rp"rate the s"'tware int" the b#siness pr"cesses "' the "r$anizati"n& Als", the hi$her
the c"mple3ity "' the s"'tware, the m"re time an( hence, e3pense "' the implementati"n&
There'"re, c"mple3ity "' the s"'tware may have a ne$ative relati"nship with s#ccess'#l
ER implementati"n&
Especially with re$ar( t" internati"nal implementati"ns "' ER s"'tware, the ability "'
the s"'tware t" c"mply with l"cal le$islati"n is an imp"rtant )S* '"r s#ccess&
!,r#mbh"lz et al&, 200.% <ewell et al& !200.% '"#n( that the '"c#s "' the s"'tware,
e''iciency "r 'le3ibility, in'l#ence( h"w the "r$anizati"n (ealt with p"ssible chan$es t"
b#siness pr"cesses, an( th#sly, s#ccess'#l implementati"n& *inally, the s#itability "' the
"peratin$ ass#mpti"ns an( b#siness r#les with respect t" the c"mpany an( in(#stry in
7#esti"n is an imp"rtant c"nsi(erati"n in the $a#$in$ s#ccess'#l ER implementati"n&
!,r#mbh"lz et al&, 2000: =ee an( =ee, 2000: <ah et al&, 200.: an( 5mble et al&, 200.%
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Characteristics of the firm
Since the characteristics "' the #sers, implementati"n team, an( mana$ement is (isc#sse(
later in this paper, "nly "ne "ther characteristic "' the 'irm was i(enti'ie( as a )S* in the
literat#re reviewe(& *irm size was i(enti'ie( by several researchers as a )S* '"r ER
implementati"n s#ccess& !Bra('"r( an( *l"rin, 200.: 9#pla$a an( Astani, 200.: ?abert
et al&, 200.b: ?abert et al&, 2000% Bra('"r( an( *l"rin !200.% #se( 'irm size as a c"ntr"l
variable& This is #s#ally ("ne with a characteristic "r in(epen(ent variable with a
si$ni'icant e''ect "n the (epen(ent variable b#t n"t a variable "' interest in the st#(y
#n(er analysis& They (i( n"t 'in( it a si$ni'icant 'act"r& Bra('"r( an( *l"rin !200.% *"r
9#pla$a an( Astani !200.%, 'irm size pr"ve( t" m"(erate the relati"nship between
vari"#s in(epen(ent variables an( ER implementati"n s#ccess& -nly ?abert et al&
!200.b% an( ?abert et al& !2000% #se( 'irm size as an in(epen(ent variable an( '"#n( it t"
be si$ni'icant in'l#ence "n a variety "' s#ccess variables&
Implementation team characteristics
Several st#(ies have st#(ie( the #se "' e3perience( c"ns#ltants in s#ccess'#l
implementati"n pr"cesses& !A(am an( -29"herty, 2000: r"bbery et al&, 2002: /aines an(
C""(h#e, 200.: an( ?ar0#s et al, 2000% )"ns#ltants are imp"rtant in brin$in$ b"th
0n"wle($e an( e3perience in implementati"n& These are tw" imp"rtant implementati"n
s#ccess 'act"rs "'ten lac0in$ in 'irms implementin$ ER systems& S"me "' the st#(ies
menti"ne( that n"t all c"ns#ltants were e3perience( an( th#s it is imp"rtant t" (istin$#ish
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between e3perience( an( ine3perience( c"ns#ltants& S"me e3ec#tives resp"n(e( t"
7#esti"ns with the c"mment that the c"ns#ltants learne( as m#ch 'r"m the c"mpany as
the c"mpany learne( 'r"m them& /"wever, it w"#l( $enerally be the c"ns#ltant2s +"b t"
help the c"mpany an( there'"re, e3perience is val#e(&
Ce'en an( Ri(in$s !2002% l""0e( at whether implementati"n team resp"nsiveness t" #ser
nee(s was a si$ni'icant )S*& ="$ically, they '"#n( that resp"nsiveness lea( t" increase(
percepti"n by #sers "' the system bein$ c"rrectly c"n'i$#re( an( satis'acti"n with the
system& !Ce'en an( Ri(in$s, 2002% The ability "' the implementati"n team t" plan an(
ma0e (ecisi"ns was an imp"rtant 'act"r& !?abert et al&, 200.a: <ah et al&, 200.% This
emp"werment "' the implementati"n team helps t" increase their resp"nsiveness t"
impe(iments t" the implementati"n pr"cess&
The c"mp"siti"n "' the team can a(( si$ni'icantly t" the pr"bability "' s#ccess'#l
implementati"n& !Ala(wani, 2002: <ah et al&, 200.: arr an( Shan0s, 2000: Sar0er an(
=ee, 200.: an( 5mble et al&, 200.% The ri$ht mi3 "' ;T e3perts, b#siness e3perts an(
c"ns#ltants can increase the pr"bability "' s#ccess& *inally, tw" st#(ies investi$ate( the
r"le "' the pr"+ect champi"n in the implementati"n pr"cess& !<ah et al, 200.: an( arr
an( Shan0s, 2000% The pr"+ect champi"n is instr#mental in ens#rin$ that the pr"+ect is
p#she( thr"#$h "bstacles an( tryin$ p"ints in the installati"n pr"cess& The pr"+ect
champi"n can be "n the implementati"n team "r a member "' mana$ement wh" is behin(
the pr"+ect& -'ten, the pr"+ect champi"n has i(enti'ie( si$ni'icant bene'its "' the ER
pr"+ect&
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Role and characteristics of top management
The establishment "' clear "b+ectives an( $"als '"r the ER pr"+ect is imp"rtant in
s#ccess'#l implementati"n& !A(am an( -29"herty, 2000: Ala(wani, 2002: 9#pla$a an(
Astani, 200.: <ah et al&, 200.: arr an( Shan0s, 2000: S#mner, 2000: 5mble et al&, 200.%
Acc"r(in$ t" the "l( a(a$e, y"# can2t $et anywhere #nless y"# 0n"w where y"# are
$"in$& S" it is that the clear "b+ectives an( $"als are imp"rtant t" m"ve all parties in the
same (irecti"n& The $"als an( "b+ectives, set by t"p mana$ement, are relate( t" an"ther
'act"r, t"p mana$ement s#pp"rt, inv"lvement an( participati"n& This 'act"r is "'ten
incl#(e( in m"(els "' ER implementati"n s#ccess& !Ala(wani, 2002: Bra('"r( an(
*l"rin, 200.: 9#pla$a an( Astani, 200.: Barvenpaa an( ;ves, 1AA1: <ah et al&, 200.:
alaniswamy, 2002: arr an( Shan0s, 2000: Sar0er an( =ee, 200.: an( 5mble et al&%
Barvenpaa an( ;ves !1AA1% '"#n( that b"th inv"lvement an( participati"n were
si$ni'icant& E3ec#tive participati"n re'erre( t" the )E-2s activities "r s#bstantive
pers"nal interventi"ns in the mana$ement "' ;T& E3ec#tive inv"lvement re'lects the
(e$ree "' imp"rtance place( "n in'"rmati"n techn"l"$y by the )E-& ;nterestin$ly, t"p
mana$ement e3ec#tive2s a$e an( '#ncti"nal bac0$r"#n( was '"#n( si$ni'icant t" ER
implementati"n s#ccess& !Barvenpaa an( ;ves, 1AA1%
Characteristics of the implementation process
1.
-ne "' the ma+"r c"n'licts in ER implementati"n is the ch"ices that have t" be ma(e
between b#siness pr"cess en$ineerin$ vs& s"'tware m"(i'icati"n& 9#e t" the D"''1the1
shel'E nat#re "' ER s"'tware, an( the lac0 "' #ni'"rmity acr"ss b#siness pr"cesses, even
within in(#stries, this c"n'lict lea(s t" (i''erin$ (e$rees "' each '"r each ER
implementati"n& B#siness pr"cess en$ineerin$ re'ers t" the chan$es ma(e t" the 'irm2s
"peratin$ pr"ce(#res in "r(er t" c"n'"rm t" the b#siness r#les "' the s"'tware& ;n th"se
cases where this is #n(esirable "r imp"ssible, s"'tware m"(i'icati"ns m#st be ma(e&
Each has its "wn #ni7#e pr"blems ass"ciate( with it& B#siness pr"cess en$ineerin$ is
(i''ic#lt where resistance t" chan$e is present& S"'tware m"(i'icati"ns lea( t" #p$ra(in$
pr"blems when new releases "' the s"'tware are iss#e(& Several st#(ies incl#(e( "ne "r
m"re "' these 'act"rs in their analysis& !/"n$ an( ,im, 2002: ?ar0#s et al&, 2000:
?"twani et al&, 2002: <ah et al&, 200.: alaniswamy, 2002: arr an( Shan0s, 2000:
R"bey et al&: 5mble et al&, 200.%
Trainin$ an( e(#cati"n "' #sers, c#st"mers an( s#ppliers is an imp"rtant part "' a("pti"n
an( satis'acti"n "' the ER system& !9#pla$a an( Astani, 200.: ?ar0#s et al&, 2000:
alaniswamy, 2002: R"bey et al&, 2002: an( 5mble et al&, 200.% ;na(e7#ate trainin$ was
menti"ne( as a (isablin$ 'act"r in several st#(ies& 9ata 7#ality an( acc#racy 'r"m the
system was incl#(e( by ?ar0#s et al& !2000% an( 5mble et al& !200.%& A(e7#ate testin$
"' the system be'"re the Dc#t1"verE was a 'act"r in st#(ies by ?ar0#s et al !2000% an(
<ah et al& !200.%& A(e7#ate time t" c"mplete the implementati"n, in "r(er t" av"i(
D$"in$ liveE be'"re the system is rea(y was i(enti'ie( in st#(ies by A(am an( -29"herty
!2000%, Bra('"r( an( *l"rin !200.% an( arr an( Shan0s !2000%& An( 'inally, alth"#$h it
14
may seem t" be "bvi"#s, ability t" eval#ate the pr"+ect pr"$ress is an imp"rtant
c"nsi(erati"n& !?ar0#s et al&, 2000: <ah et al&, 200.: an( 5mble et al& 200.%
End-users characteristics
*inally, characteristics "' en(1#sers have been i(enti'ie( in s"me st#(ies as pre(ict"rs "'
ER implementati"n s#ccess as meas#re( by a("pti"n, #se an( satis'acti"n with the ER
system& En(1#ser attit#(es t"war( the ER system were '"#n( t" in'l#ence s#ccess'#l
implementati"n& !Ab(inn"#r1/elm et al&, 200.: ,r#mbh"lz et al&, 2000: an( S#mner,
2000% 5ser inv"lvement in the ER implementati"n pr"cess was st#(ie( by Ab(inn"#r1
/elm et al& !200.% an( S#mner !2000%& Ab(inn"#r1/elm et al& !200.% '"#n( that
empl"yees with the l"west +"b ten#re an( th"se in pr"'essi"nal p"siti"ns were m"re
li0ely t" be satis'ie( with the ER system&
Quest for the dependent variable
Be'"re the m"(el "' ER ;mplementati"n s#ccess can be (isc#sse(, it is imp"rtant t"
(istin$#ish which 'act"rs represent ER implementati"n s#ccess& ?"st "' the case
st#(ies in the reviewe( literat#re #se( the term ER implementati"n s#ccess t" (escribe a
sit#ati"n in which the s"'tware was installe( an( #p an( r#nnin$& <" (i''erin$ (e$rees "'
s#ccess were (i''erentiate( (#e t" the 'act that the emphasis "' the research was the
i(enti'icati"n "' )S*s& /"wever, several "' the st#(ies i(enti'y p"ssible 'act"rs that can
be #se( t" c"ncept#alize an(4"r 7#anti'y ER implementati"n s#ccess& These 'act"rs
incl#(e e3pectati"ns "' a((e( val#e, #ser acceptance an( satis'acti"n, e''iciency an(
15
e''ectiveness, "r$anizati"nal per'"rmance, systems #se an( service 7#ality& See Table 2
'"r (etails "' these 'act"rs&
The p#rp"se '"r the #se "' (i''erent (epen(ent variables can be s#rmise( t" be (epen(ent
#p"n the reas"ns '"r the implementati"n& ;' the p#rp"se "' the implementati"n is t"
increase e''iciency an( e''ectiveness, then a meas#re "' the (e$ree t" which the
implementati"n has achieve( these $"als is a vali( meas#re "' Ds#ccessE& Since many
'act"rs can in'l#ence the (ecisi"n t" implement an ER system, then the (epen(ent
variables selecti"n can be c"nsi(ere( #ni7#e t" the in(ivi(#al 'irm& There'"re, the
empirical researcher may 'in( it (i''ic#lt t" (etermine the meas#re "' s#ccess m"st
appr"priate '"r the st#(y& @hile the inherent (e'iciencies are n"te(, '"r the p#rp"ses "'
this literat#re review, DER implementati"n s#ccessE will be #se( as the (epen(ent
variable&
Model evelopment
These 'act"rs e3tracte( 'r"m the literat#re an( cate$"rize( in a l"$ical manner serve as
the basis '"r the research m"(el '"r this paper& Since the p#rp"se "' this paper is m"(el
b#il(in$, the c"ncl#si"n "' the paper is Appen(i3 A& This m"(el sh"#l( be teste(
empirically t" (etermine s"#n(ness an( revise the m"(el as necessary& -ne ma+"r
(e'iciency "' this m"(el is the lac0 "' attenti"n t" tw" 'act"rs: #nteste( p"tential
pre(ict"rs "' s#ccess an( p"ssible m#ltic"llinearity "' the )S*s& /"wever, testin$ "' the
m"(el sh"#l( be able t" a((ress these iss#es&
16
Conclusion
This research has attempte( t" #n(erstan( the empirical research in ER implementati"n
s#ccess an( the empirically i(enti'ie( )S*s in this stream "' research& ?any st#(ies that
(isc#ss ER implementati"n c"ncept#ally were basically i$n"re( in this research& The
res#lt "' this research is a m"(el base( "n empirical research that is appr"priate '"r
testin$&
18
Table 1 S#mmary "' Empirical Research "n )ritical S#ccess *act"rs by )ate$"ry
Category Critical SuccessFailure
Factors
Aut!ors "year#
Environment :
Cultural
)#lt#ral imp"rtance
place( "n trainin$,
c#lt#ral imp"rtance "'
systems emp"werin$ the
"r$anizati"n
,r#mbh"lz et al& !2000%
Resistance t" chan$e 9#pla$a an( Astani !200.%, /"n$ an( ,im
!2002% an( alaniswamy !2002%
)#lt#ral rea(iness ?"twani et al& !2002%
-pen an( h"nest
c"mm#nicati"n
<ah et al& !200.% an( Sar0er an( =ee !200.%
5nrealistic e3pectati"ns
an( s"cial c"mmitment
!escalati"n "'
c"mmitment%
S#mner !2000%
Environment:
Structural
)"mpetitive press#re Bra('"r( an( *l"rin !200.%
=ac0 "' ;T pers"nnel,
b#siness e3perts an( "r
empl"yee t#rn"ver
Ala(wani !2002%, 9#pla$a an( Astani !200.%,
?ar0#s et al& !2000%, alaniswamy !2002%,
R"bey et al !2002%, an( S#mner !2000%
-r$anizati"nal 'it /"n$ an( ,im !2002% an( S#mner !2000%
Software )"mple3ity "' the
s"'tware
A(am an( -29"herty !2000%, Bra('"r( an(
*l"rin !200.%, *rancalanci !2001%, arr an(
Shan0s !200.%, Ribbers an( Sch"" !2002%,
R"bey et al& !2002% an( S#mner !2000%
Ability t" c"mply with
l"cal le$islati"n
,r#mbh"lz et al& !2000%
*"c#s "' the s"'tware <ewell et al& !200.%
S#itability "' "peratin$
ass#mpti"ns an( b#siness
r#les, ch""sin$ the ri$ht
s"'tware
,r#mbh"lz et al& !2000%, =ee an( =ee !2000%,
<ah et al !200.% an( 5mble et al& !200.%
Firm Size "' the 'irm Bra('"r( an( *l"rin !200.%, 9#pla$a an( Astani
!200.%, ?abert et al& !200.b% an( ?abert et al
!2000%

Implementation
Team
Characteristics
;ncl#si"n "' e3perience(
c"ns#ltants
A(am an( -29"herty !2000%, R"bey et al&
!2002%, /aines an( C""(h#e !200.% an( ?ar0#s
et al& !2000%
;mplementati"n team
resp"nsiveness
Ce'en an( Ri(in$s !2002%
lannin$ an( (ecisi"n
ma0in$
?abert et al& !200.a% an( <ah et al& !200.%
1>
Table 1 S#mmary "' Empirical Research "n )ritical S#ccess *act"rs by )ate$"ry
Category Critical SuccessFailure
Factors
Aut!ors "year#
r"+ect champi"n <ah et al& !200.% an( arr an( Shan0s !2000%
Team c"mp"siti"n Ala(wani !2002%, <ah et al& !200.%, arr an(
Shan0s !2000%, Sar0er an( =ee !200.% an(
5mble et al& !200.%
Top Management )lear "b+ectives an(
$"als
A(am an( -29"herty !2000%, Ala(wani !2002%,
9#pla$a an( Astani !200.%, <ah et al& !200.%,
S#mner !2000%, 5mble et al& !200.% an( arr
an( Shan0s !2000%
S#pp"rt, inv"lvement an(
participati"n by t"p
mana$ement
Ala(wani !2002%, Bra('"r( an( *l"rin !200.%,
9#pla$a an( Astani !200.%, Barvenpaa an( ;ves
!1AA1%, <ah et al& !200.%, alaniswamy !2002%,
arr an( Shan0s !2000%, Sar0er an( =ee !200.%
an( 5mble et al& !200.%
E3ec#tive2s a$e an(
'#ncti"nal bac0$r"#n(
Barvenpaa an( ;ves !1AA1%
Implementation
Process
;mplementati"n appr"ach
!piecemeal "r all at "nce%
Br"wn an( Fessey !1AA>%, ?ar0#s et al& !2000%,
arr an( Shan0s !2000%, R"bey et al& !2002% an(
5mble et al& !200.%
B#siness pr"cess
reen$ineerin$ vs&
s"'tware m"(i'icati"n
?ar0#s et al& !2000%, ?"twani et al& !2002%,
<ah et al& !200.%, alaniswamy !2002%, arr an(
Shan0s !2000%, R"bey et al& !2002%, 5mble et al&
!200.%, an( /"n$ an( ,im !2002%
Trainin$ an( E(#cati"n 9#pla$a an( Astani !200.%, ?ar0#s et al&
!2000%, alaniswamy !2002%, R"bey et al&
!2002% an( 5mble et al& !200.%
9ata 7#ality an( acc#racy ?ar0#s et al& !2000% an( 5mble et al& !200.%
Eval#ati"n "' pr"+ect
pr"$ress
?ar0#s et al& !2000%, <ah et al& !200.% an(
5mble et al& !200.%
A(e7#ate testin$ "'
system
?ar0#s et al& !2000% an( <ah et al& !200.%
Timin$ "'
implementati"n
A(am an( -29"herty !2000%, Bra('"r( an(
*l"rin !200.%, an( arr an( Shan0s !2000%
En(1#sers En(1#sers attit#(es
t"war( the ER system
Ab(inn"#r1/elm et al& !200.%, ,r#mbh"lz et al&
!2000% an( S#mner !2000%
5ser inv"lvement Ab(inn"#r1/elm et al !200.% an( S#mner
!2000%
B"b Ten#re an( Type Ab(inn"#r1/elm et al& !200.%
1A
Table 2 S#mmary "' Empirical ER Research
Author(s) Critical Success Factors Significant? Dependent Variables
Abdinnour-Helm et al.(2003)
level of employee involvement with the early
implementation process: four levels of
cornerstone team builders or!ani"ational
mappin! and non-involvement #ot si!nificant $he e%pected capabilities of the &'( system
)ob tenure *i!nificant $he e%pected value of the &'( system
)ob type *i!nificant Acceptance of the &'( system
$imin! of the &'( implementation
Adam and +,-oherty (2000) duration *i!nificant Adoption by the staff
comple%ity *i!nificant staff found the software beneficial
clear mana!erial ob)ectives *i!nificant -e!ree to which mana!ers too. ownership of the &'( system
wor. in collaboration with an e%perienced
implementer *i!nificant
Aladwani (2002)
technolo!y characteristics : support technolo!ies
for production coordination and or!ani"ation *i!nificant effectiveness
pro)ect characteristics: pro)ect team si"e *i!nificant efficiency
people characteristics: e%pertise of the staff *i!nificant satisfaction
or!ani"ational characteristics: support from top
mana!ement *i!nificant added business value to or!ani"ation
process characteristics: problem solvin!
competency *i!nificant
tas. characteristics: clear !oals *i!nificant
/radford and 0lorin (2003)
1nnovative characteristics: technical capability
perceived comple%ity and business process
reen!ineerin! *i!nificant or!ani"ational performance
or!ani"ational characteristics: top mana!ement
support trainin! and consensus with
or!ani"ational ob)ectives *i!nificant user satisfaction (became a moderator)
environmental characteristics: competitive
pressure *i!nificant
control variables: time needed to implementation *i!nificant
control variables: firm si"e #ot si!nificant
20
Table 2 S#mmary "' Empirical ER Research
Author(s) Critical Success Factors Significant? Dependent Variables
/rown and 2essey (3445) +r!ani"ational characteristics #ot si!nificant 1mplementation approach
(ac.a!e capabilities sou!ht *i!nificant
*cope of the pro)ect #ot si!nificant
-e6one and 7c6ean (2003) *ystems use
service 8uality
information 8uality
system 8uality
use
user satisfaction
net benefits
-upla!a and Astani (2003) lac. of &'( trainin! and education *i!nificant &'( implementation success
lac. of in-house e%pertise in &'( *i!nificant
lac. of data accuracy *i!nificant
lac. of companywide support and involvement *i!nificant
lac. of clear !oals for &'( effort *i!nificant
resistance to chan!e *i!nificant
firm si"e was moderatin! variable *i!nificant
0rancalanci (2003) si"e of the pro)ect *i!nificant implementation effort
comple%ity *i!nificant
9efen and 'idin!s (2002) implementation team responsiveness *i!nificant user assessment of correctness of the confi!uration
*i!nificant user willin!ness to adopt the system
Hayes et al. (2003) announcement of &'( implementation *i!nificant firms mar.et return
Haines and 9oodhue (2003) level of implementer .nowled!e and s.ills *i!nificant &'( success
consultant involvement *i!nificant
21
Table 2 S#mmary "' Empirical ER Research
Author(s) Critical Success Factors Significant? Dependent Variables
Hon! and :im (2002) or!ani"ational fit *i!nificant
&'( implementation success: de!ree of deviation from fpro)ect !oal in terns of e%pected cost time system performance and
benefits
7oderators: &'( adaptation process adaptation
and or!ani"ational resistance. *i!nificant
Hunton et al. (2002) announcement of an &'( implementation *i!nificant financial analysts, earnin!s forecasts
7oderators: firm si"e and firm health *i!nificant
;arvenpaa and 1ves (3443) &%ecutive involvement *i!nificant pro!ressive use of 1$
&%ecutive participation *i!nificant
e%ecutive a!e *i!nificant
functional bac.!round *i!nificant
+r!ani"ational conditions *i!nificant
:rumbhol" et al. (2000) importance of trainin! *i!nificant &'( implementation success
employee )ob satisfaction *i!nificant
importance of systems empowerin! the
or!ani"ation *i!nificant
inability of the software to meet specific needs of
the employees *i!nificant
ability to comply with local le!islation *i!nificant
unsuitable operatin! assumptions *i!nificant
6ee and 6ee (2000) /usiness rules in &'( pac.a!es *i!nificant &'( implementation problems
7abert et al. (2003a) plannin! efforts *i!nificant <nder bud!et and =on-time= implementations
implementation decisions *i!nificant
implementation mana!ement *i!nificant
7abert et al (2003b) or!ani"ation si"e si!nificant 'eason for the implementation
amount of &'( functionality employed
implementation method
22
Table 2 S#mmary "' Empirical ER Research
Author(s) Critical Success Factors Significant? Dependent Variables
type of benefits en)oyed
cost to implement
1mplementation time.
7abert et al. (2000) firm si"e si!nificant e%tent of pac.a!ed &'( system use
motivation to pursue an &'( system
implementation e%perience
benefits obtained throu!h implementation
7ar.us et al (2000)
phase of the pro)ect: pro)ect phase sha.edown
phase and onward and upward si!nificant &'( implementation success
software modifications to the &'( pac.a!e si!nificant
system inte!ration si!nificant
consultants si!nificant
turnover of pro)ect personnel si!nificant
implementation approach si!nificant
pro)ect scope si!nificant
end-user trainin! si!nificant
inade8uate testin! si!nificant
data 8uality problems si!nificant
reportin! needs si!nificant
business process reen!ineerin! si!nificant
ability to !a!e pro!ress si!nificant
lac. of 1$ personnel si!nificant
up!radin! problems si!nificant
#ah et al (2003)
appropriate business and information technolo!y
le!acy system &'( implementation success
business plan and vision
business process reen!ineerin!
Change management culture and program si!nificant
communication
2.
Table 2 S#mmary "' Empirical ER Research
Author(s) Critical Success Factors Significant? Dependent Variables
ERP teamwork and composition si!nificant
monitorin! and evaluation of performance
project champion si!nificant
project management si!nificant
software development
testin! and troubleshootin!
top management support si!nificant
#ewell et al. (2003) focus of the software (efficiency and fle%ibility) si!nificant >omplementarity between :7 and &'( systems
(arr and *han.s (2000) mana!ement support si!nificant &'( implementation success at each phase of the pro)ect
full-time business e%perts si!nificant
empowered decision ma.ers si!nificant
deliverable and realistic dates si!nificant
pro)ect champion si!nificant
vanilla &'( (little customi"ation) si!nificant
smaller scope pro)ects si!nificant
clear definition of scope and !oals si!nificant
ri!ht balance on the implementation team of
e%perts si!nificant
perseverance and determination with a
commitment to chan!e si!nificant
7oderators: scope and comple%ity of the pro)ect si!nificant
(alaniswamy (2002) employee turnover si!nificant &'( implementation success
resistance to chan!e si!nificant
over run of estimated bud!et si!nificant
increased wor. load in implementation process si!nificant
business reen!ineerin! si!nificant
user resistance si!nificant
lac. of top mana!ement support si!nificant
trainin! si!nificant
24
Table 2 S#mmary "' Empirical ER Research
Author(s) Critical Success Factors Significant? Dependent Variables
'ibbers and *choo (2002)
>omple%ity of the software implementation :
variety variability and inte!ration si!nificant &'( implementation success
'obey et al. (2002) .nowled!e demands si!nificant &'( implementation success
business e%perts si!nificant
si"e and comple%ity of the software si!nificant
business process reen!ineerin! si!nificant
consultants si!nificant
tranin! si!nificant
approach to implementation si!nificant
*ar.er and 6ee (2003) stron! and committed leadership si!nificant &'( implementation success
open and honest communication
balanced and empowered &'( implementation
team
*umner (2000)
+r!ani"ational fit: resource insufficiency e%tent
of chan!es si!nificant &'( implementation success
*.ill mi%: lac. of .nowled!e and technical
e%pertise si!nificant
7ana!ement structure and strate!y: lac. of
a!reement on pro)ect foals and lac. of senior
mana!ement involvement si!nificant
*oftware systems desi!n: misunderstandin!
re8uirements and chan!es in re8uirements lac.
of an effective methodolo!y poor estimation and
failure to perform the activities needed. si!nificant
<ser involvement and trainin!: lac. of user
commitment and ineffective communications with
users and conflicts between user departments si!nificant
$echnolo!ical plannin! refers to lac. of ade8uate
technolo!y si!nificant
25
Table 2 S#mmary "' Empirical ER Research
Author(s) Critical Success Factors Significant? Dependent Variables
strained technical capabilities and failure of
technolo!y to meet specifications and technical
comple%ity. si!nificant
(ro)ect mana!ement: unrealistic schedules and
bud!ets people and personality failures lac. of
effort anta!onistic attitudes and people clashes si!nificant
*ocial commitment: inability to reco!ni"e
problems and a tendency to .eep pourin!
resources into a failed pro)ect and unrealistic
e%pectations si!nificant
7otwani et al. (2002)
>han!e environment: cultural readiness
learnin! capacity relationship balancin! 1$
levera!ability and .nowled!e capability and
strate!ic initiatives si!nificant &'( implementation success
>han!e mana!ement involves effectively
balancin! forces in favor of a chan!e over forces
of resistance. si!nificant
(rocess mana!ement is defined as a set of
concepts and practices aimed at better
stewardship of business processes. si!nificant
<mble et al. (2003) >lear compellin! vision si!nificant -e!ree to which the implementation met predefined !oals
stron! leadership commitment and participation
by top mana!ement si!nificant
pro)ect mana!ement si!nificant
reen!ineerin! of .ey business processes si!nificant
implementation team composition si!nificant
data accuracy si!nificant
education and trainin! si!nificant
carefully selected performance measures si!nificant
tie compensation to successful implementation si!nificant
multi-site issues si!nificant
cut-over strate!y si!nificant
26
Table 2 S#mmary "' Empirical ER Research
Author(s) Critical Success Factors Significant? Dependent Variables
selection of the software product si!nificant
implementation approach or strate!y si!nificant
28
Appen(i3 A ?"(el "' ER ;mplementati"n S#ccess
2>
Envir"nment: )#lt#ral
;mp"rtance "' trainin$ an( systems
Resistance t" chan$e
)#lt#ral rea(iness
-pen an( h"nest c"mm#nicati"n
5nrealistic e3pectati"ns an( s"cial c"mmitment
Envir"nment: Str#ct#ral
)"mpetitive press#re
;T pers"nnel an( b#siness e3pert availability
Empl"yee t#rn"ver
S"'tware
)"mple3ity "' the s"'tware
Ability t" c"mply with l"cal le$islati"n
*"c#s "' the s"'tware
S#itability "' "peratin$ ass#mpti"ns an( b#siness r#les
*irm
Size "' the *irm
;mplementati"n team characteristics
E3perience( c"ns#ltants
;mplementati"n team resp"nsiveness
Emp"werment "' team
r"+ect champi"n
Team c"mp"siti"n
T"p ?ana$ement
)lear "b+ectives an( $"als
S#pp"rt, inv"lvement an( participati"n
A$e an( '#ncti"nal bac0$r"#n( "' )E-
;mplementati"n r"cess
;mplementati"n appr"ach
B#siness pr"cess reen$ineerin$ vs& s"'tware m"(i'icati"n
Trainin$ an( E(#cati"n
9ata 7#ality an( acc#racy
Eval#ati"n "' pr"+ect pr"$ress
Timin$ "' implementati"n
En(1#sers
Attit#(es t"war( the ER system
5ser inv"lvement
B"b Ten#re an( type
ER ;mplementati"n
S#ccess
Appen(i3 B Ann"tate( Bibli"$raphy
A$dinnour%&elm' S(' Lengnic)%&all' M( L(' and C( A( Lengnic)%&all( *++,( Pre%
implementation attitudes and organi-ational readiness .or implementing an
Enterprise Resource Planning system( European !ournal of "peration Researc!'
/01:*' *23%*4,(
This paper e3amines the r"le "' empl"yee attit#(es in ER implementati"n e''ectiveness
in "r(er t" pr"vi(e a better #n(erstan(in$ "' the Dpe"pleE si(e "' ER implementati"n&
Empl"yee attit#(es t"war( ER systems an( h"w these systems are intr"(#ce( int"
"r$anizati"ns can either hin(er "r 'acilitate implementati"n s#ccess, (espite the rati"nal
appr"ach t" chan$e an "r$anizati"n may ta0e& Empl"yee attit#(es t"war( ER systems
are (ynamic, chan$in$ "ver time as empl"yees e3perience the ER system m"re (irectly&
This paper intr"(#ces the i(ea "' the Ds"cially c"nstr#cte(E c"mp"nents "' techn"l"$y&
The "b+ective c"mp"nents incl#(e the (esi$n an( inp#t characteristics an( its
'#ncti"nality& The s"cially c"nstr#cte( c"mp"nent "' techn"l"$y incl#(es the meanin$s
pe"ple attach t" the techn"l"$y, which a''ects h"w they 'eel ab"#t the techn"l"$y an(
h"w they behave&
The st#(y l""0s at the level "' empl"yee inv"lvement with the early implementati"n
pr"cess, +"b ten#re, an( +"b type "n shapin$ attit#(es t"war( an ER system in the pre1
implementati"n sta$e& Empl"yees with $reater inv"lvement early have $reater e3p"s#re
t" the s"'tware an( $reater p"sitive attit#(es t"war( the techn"l"$y& ;nv"lvement was
(e'ine( as '"#r levels: )"rnerst"ne, Team b#il(er, "r$anizati"n mappin$ an( n"n1
inv"lvement& )"rnerst"nes were lea(ers in the implementati"n pr"cess& Team b#il(ers
were sec"n( hi$hest an( they are assi$ne( the r"le "' practical applicati"n "' chan$e
mana$ement& -r$anizati"nal mappin$ was the thir( level an( incl#(e( empl"yees that
"nly atten(e( meetin$s that mappe( the pr"cesses that were a''ecte( by the ER&
Empl"yees with l"wer levels "' +"b ten#re will react m"re p"sitively t" the new ER
systems in the early sta$es than th"se with hi$her levels "' ten#re& Empl"yees with
mana$erial "r pr"'essi"nal r"les in the "r$anizati"n will have m"re p"sitive attit#(es than
empl"yees in s#pervis"r, pr"(#cti"n w"r0er an( "ther +"b types& The (epen(ent variable
in the st#(y c"nsists "' '"#r parts: the e3pecte( capabilities "' the ER system, the
e3pecte( val#e "' the ER system, acceptance "' the ER system an( the timin$ "' the
ER implementati"n&
A s#rvey was c"n(#cte( with a lar$e man#'act#rin$ "r$anizati"n in the ?i(west& The
(ata was analyze( #sin$ ?A<-FA& The "verall ?A<-FA was si$ni'icant an( three "'
the in(ivi(#al were: capacity, val#e an( acceptance& =evel "' inv"lvement in pre1
implementati"n trainin$ with the c"ns#ltants appeare( t" have little in'l#ence "n attit#(es
t"war( ER& )"ntrary t" e3pectati"ns, e3p"s#re t" the ER system an( $reater levels "'
inv"lvement in its implementati"n (i( n"t seem t" (ramatically chan$e the attit#(es "'
empl"yees& Empl"yees with less ten#re were m"re san$#ine ab"#t the p"tential
capabilities an( the p"tential val#e "' the new ER system than empl"yees with 11 "r
m"re years ten#re& Either a hi$her level in the "r$anizati"n hierarchy an(4"r a
2A
Appen(i3 B Ann"tate( Bibli"$raphy
pr"'essi"nal4en$ineerin$ p"siti"n may 'av"rably shape empl"yees2 appreciati"n "' the
p"tential bene'its "' ER&
-r$anizati"nal (em"$raphy appears t" be an imp"rtant 'act"r (eterminin$ attit#(es
t"war( ER implementati"n an( its #ltimate e''ectiveness& Sec"n(, an e3cepti"nally
7#ic0 implementati"n appr"ach may n"t pr"vi(e the time necessary '"r empl"yees t"
learn ab"#t the system an( appreciate its p"tential val#e& Thir(, '"ll"win$ a rati"nal
appr"ach t" ER implementati"n as a(v"cate( by c"ns#ltants an( "thers will n"t
necessarily "verc"me s"#rces "' "r$anizati"nal resistance t" chan$e& The rati"nal
appr"ach !e3plain its bene'its an( pe"ple with val#e it% may n"t have the best
c"nse7#ences&
Adam' F( and P( 56Do!erty( *+++( Lessons .rom enterprise resource planning
implementations in Ireland 7 towards smaller and s!orter ERP pro8ects( !ournal of
Information #echnolog$' /2' ,+2%,/1(
The p#rp"se "' the article was t" empirically investi$ate the e3periences "' b#sinesses
implementin$ ER in ;relan( "ver a . year peri"(& 9#e t" the en"rm"#s ab"#t "' press in
the tra(e +"#rnals ab"#t the inherent ris0s "' ER implementati"ns, the a#th"rs s"#$ht t"
investi$ate the e3periences "' implementers an( (etermine i' their e3periences mirr"r the
e3pectati"ns that are c#rrently (isc#sse( in the me(ia&
The a#th"rs '"c#se( "n the pr"'iles an( sizes "' the "r$anizati"ns implementin$ ER an(
"n the 0ey parameters in their relati"nship with their s#ppliers "' ER s"'tware& The
"r$anizati"ns st#(ie( c"vere( (i''erent in(#stries an( (e$rees "' e3pertise with ;T&
Appr"3imately 64 percent were classi'ie( as small t" me(i#m enterprises !S?Es%& The
selecti"n pr"cess was simply t" st#(y the implementati"ns "' "ne partic#lar pac0a$e "'
"ne (istrib#t"r& This was necessary beca#se, in ;relan(, "nly "ne (istrib#t"r e3ists&
9ata was c"llecte( thr"#$h semi1str#ct#re( interviews with 0ey act"rs wh" ha( been
inv"lve( with the selecti"n an( implementati"n "' the s"'tware in the client
"r$anizati"ns& A 7#esti"nnaire was #se( in "r(er t" ens#re that all relevant iss#e were
(ealt with, b#t interviewees were le't t" v"l#nteer whatever in'"rmati"n they 'elt was
imp"rtant $iven the $"als "' the st#(y& The empirical (ata c"llecte( ab"#t each site an(
each implementati"n were reviewe( with the sta'' members in the s"'tware (istrib#t"r
"''ice t" ens#re acc#racy "' the (ata& Analysis "' the 'in(in$s an( c"ncl#si"ns ab"#t the
research were #n(erta0en in c"llab"rati"n between the aca(emic researcher an( the m"st
seni"r pr"+ect lea(er "' the s"'tware (istrib#t"r, in "r(er t" $ive e7#al imp"rtance t" the
"pini"ns "' all parties inv"lve( an( rem"ve the p"ssibility "' bias in the interpretati"n "'
the res#lts&
T" (etermine i' the pr"+ects were s#ccess'#l, the a#th"rs l""0e( at whether the ER
system ha( been wi(ely a("pte( by the sta'' in the "r$anizati"n an( whether the sta'' was
c"nvince( "' the bene'its br"#$ht by the s"'tware& Als", the (e$ree t" which mana$ers
ha( ta0en "wnership "' the ER system was an"ther 0ey aspect "' the st#(y&
.0
Appen(i3 B Ann"tate( Bibli"$raphy
This st#(y in(icates that (#rati"n an( c"mple3ity "' lar$e ER pr"+ects as p"rtraye( in
the literat#re may be (#e as m#ch t" the c"mple3ity "' the "r$anizati"ns where they are
implemente( as t" the c"mple3ity inherent in ER systems& /"wever, ER
implementati"ns remain lar$e ;S pr"+ects, b#t they can be 7#ic0er i' the "r$anizati"n is
p#rs#in$ clear managerial objects an( i' they work in collaboration with an eperience!
implementer& A n#mber "' the s#ccess'#l implementati"ns "cc#rre( in c"mpanies with
little t" n" ;S e3pertise "nsite& These 'in(in$s in(icate that the applicati"n service
pr"vi(er !AS% r"#te may n"t be the "nly s"l#ti"n '"r S?Es&
Aladwani' A( M( *++*( An integrated per.ormance model o. in.ormation systems
pro8ects( !ournal of Management Information S$stems' /9:/' /32%*/+(
The p#rp"se "' this st#(y is t" vali(ate an inte$rate(, the"retically (riven per'"rmance
m"(el "' in'"rmati"n systems !;S% pr"+ect per'"rmance& ;S pr"+ect per'"rmance is
in'l#ence( by si3 (imensi"ns which are the in(epen(ent variables in the the"retical
m"(el "' the paper& These si3 (imensi"ns are techn"l"$y characteristics, pr"+ect
characteristics, tas0 characteristics, pe"ple characteristics, "r$anizati"nal characteristics,
an( pr"cess characteristics&
Techn"l"$y characteristics are c"ncept#alize( as s#pp"rt techn"l"$ies with three
c"mp"nents: pr"(#cti"n, c""r(inati"n, an( "r$anizati"nal (imensi"ns& r"(#cti"n
techn"l"$y re'ers t" the activities that relate t" representin$ in'"rmati"n re7#irements,
activities that relate t" analyzin$ in'"rmati"n 'l"ws an( (ata relati"nships, an( activities
that relate t" trans'"rmin$ these views int" pr"$ram c"(es& )""r(inati"n techn"l"$ies
are th"se that enable c"ntr"l an( c""perative '#ncti"nalities& -r$anizati"nal techn"l"$ies
re'lect s#pp"rt an( in'rastr#ct#re '#ncti"nalities& r"+ect characteristic is represente( by
the pr"+ect team size& Civen a partic#lar tas0, the lar$er the pr"+ect tem size, the $reater
the abilities "r res"#rces available t" the w"r0 $r"#p& Als", research s#$$ests that
pr"blem s"lvin$ ability in $r"#ps is 'acilitate( by team size& The tas0 at han( sh"#l( have
clear $"als as a characteristic t" increase ;S pr"+ect per'"rmance& )lear $"als, a tas0
characteristic, can impr"ve the ability "' pr"+ect members in pr"blem s"lvin$ tas0s&
e"ple characteristics re'er t" the e3pertise "' the sta''& ast research s#$$ests that
e3perience an( 0n"wle($e an( the res#ltant 'amiliarity with the pr"blem 'ace( can be an
imp"rtant (eterminant "' ;S pr"+ect "#tc"mes& -r$anizati"nal characteristics s#ch as
mana$ement a(v"cacy re'er t" the willin$ness "' mana$ement t" pr"vi(e the re7#ire(
res"#rces an( a#th"rity '"r pr"+ect s#ccess& r"cess characteristics re'er t" the pr"blem
s"lvin$ c"mpetency "' the pr"+ect w"r0ers&
The (epen(ent variable in the m"(el, ;S pr"+ect per'"rmance is meas#re( in terms "' the
tas0, psych"l"$ical an( "r$anizati"nal "#tc"mes "' ;S pr"+ects& Tas0 "#tc"mes are
e''ectiveness an( e''iciency& sych"l"$ical "#tc"mes are (e'ine( as satis'acti"n&
-r$anizati"nal "#tc"mes are the a((e( val#e t" the b#siness "perati"ns that are a''ecte(
by the ;S pr"+ect&
9ata was c"llecte( via a s#rvey 'r"m >4 ;S pr"+ect lea(ers& The (ata was analyze( #sin$
path analysis is a re$ressi"n1base( techni7#e wi(ely #se( '"r st#(yin$ the (irect an(
.1
Appen(i3 B Ann"tate( Bibli"$raphy
in(irect e''ects in m"(els enc"mpassin$ me(iatin$ variables& )lear $"als, sta'' e3pertise,
an( pr"+ect team size are si$ni'icant pre(ict"rs "' pr"blem s"lvin$& r"blem s"lvin$, #se
"' s#pp"rt techn"l"$ies, an( mana$ement a(v"cacy have si$ni'icant (irect e''ects "n tas0
"#tc"mes "' ;S pr"+ects& r"blem s"lvin$ an( clear $"als have a si$ni'icant (irect e''ect
"n psych"l"$ical "#tc"mes "' ;S pr"+ects& r"blem s"lvin$ an( mana$ement a(v"cacy
have si$ni'icant (irect e''ects "n "r$anizati"nal "#tc"mes "' ;S pr"+ects&
The ma+"r c"ntrib#ti"n "' this st#(y is that it empirically tests a m#lti(imensi"nal view "'
;S pr"+ect per'"rmance& This st#(y als" c"n'irms that an ;S pr"+ect has t" have a n#mber
"' imp"rtant characteristics t" '#ncti"n e''ectively& The m"st imp"rtant t" "verall ;S
pr"+ect s#ccess is pr"blem s"lvin$ ability "' the team members&
:rad.ord' M( and ;( Florin( *++,( E<amining t!e role o. innovation di..usion
.actors on t!e implementation success o. enterprise resource planning systems(
International !ournal of %ccounting Information S$stems' 0' *+2%**2(
The p#rp"se "' this st#(y is t" create an( b#il( a m"(el "' ER implementati"n s#ccess&
The pri"r research has c"ncentrate( "n case st#(ies an( the a#th"rs attempt t" b#il( a
m"(el that can be empirically teste(& Tw" relate( literat#re streams, 9i''#si"n "'
;nn"vati"n !9-;% an( ;n'"rmati"n Systems S#ccess !;S% are #se( t" b#il( a the"retical
basis '"r s#ccess'#l implementati"n "' ER&
The m"(el sh"ws that ;nn"vative characteristics, "r$anizati"nal characteristics an(
envir"nmental characteristics are the in(epen(ent variables in the st#(y an( ER
implementati"n s#ccess is the (epen(ent variable& ;nn"vative characteristics are
c"mp"se( "' technical c"mpatibility, perceive( c"mple3ity an( b#siness pr"cess
reen$ineerin$& Technical c"mpatibility re'ers t" an inn"vati"ns2 c"mpatibility with
e3istin$ an( retaine( systems, incl#(in$ har(ware an( s"'tware& )"mple3ity is the
(e$ree t" which a certain inn"vati"n is (i''ic#lt t" #n(erstan( an( #se& B#siness pr"cess
reen$ineerin$ is the pr"cess by which the ER implementer chan$es their b#siness
pr"cesses t" c"n'"rm t" the pac0a$e&
-r$anizati"nal characteristics are c"mp"se( "' t"p mana$ement s#pp"rt, trainin$, an(
c"nsens#s with "r$anizati"nal "b+ectives& T"p mana$ement s#pp"rt is the active
inv"lvement, visi"n, an( (irecti"n "' hi$h1level e3ec#tives nee(e( t" (rive the impet#s t"
implement ER& -r$anizati"nal "b+ectives c"nsens#s re'ers t" c"nsens#s am"n$
mana$ers ab"#t the "b+ectives "' the ER implementati"n, an( h"w these "b+ectives will
be m"nit"re( an( meas#re(, will lea( t" hi$her #ser satis'acti"n& Trainin$ re'ers t" the
trainin$ "' #sers ab"#t the e''ects "' mista0es that intr"(#ce err"rs int" the system&
The envir"nmental characteristic incl#(e( in the st#(y was c"mpetitive press#re& An
ER system is a capability that pr"vi(es the in'rastr#ct#re t" mana$e in'"rmati"n an(
c""r(inate activities within the 'irm t" (evel"p m"re e''icient "perati"ns an( t" ta0e
a(vanta$e "' new "pp"rt#nities& There'"re, hi$her c"mpetitive press#re is similar t"
s#b+ective n"rm '"r in(ivi(#als&
.2
Appen(i3 B Ann"tate( Bibli"$raphy
The (epen(ent variable, implementati"n s#ccess is meas#re( in tw" ways, "r$anizati"nal
per'"rmance an( #ser satis'acti"n& Tw" c"ntr"l variables were #se( in the st#(y, elapse(
time !the n#mber "' m"nths since implementati"n "' the ER pac0a$e% an( 'irm size&
The (ata was c"llecte( by way "' a s#rvey "' 0ey in'"rmants "' the SA #ser $r"#p& The
resp"n(in$ 'irms span a wi(e ran$e "' in(#stries, 'irm sizes, an( e3perience with ER&
The m"(el was teste( #sin$ stepwise linear re$ressi"n m"(els t" test the relati"nship "'
the seven in(epen(ent variables with each "' the tw" s#ccess meas#res& *"r perceive(
"r$anizati"nal per'"rmance, time elapse( since the implementati"n, c"nsens#s with
mana$erial "b+ectives an( c"mpetitive press#re were si$ni'icant pre(ict"rs& *"r #ser
satis'acti"n, c"mple3ity, trainin$, c"mpetitive press#re an( s#pp"rt 'r"m t"p mana$ement
were si$ni'icant& "st /"c analysis sh"we( that #ser satis'acti"n m"(erate( the
relati"nship between the in(epen(ent variables an( "r$anizati"nal per'"rmance&
:rown' C( and I( =essey( /993( ERP implementation approac!es: >oward a
contingency .ramewor)( &ineteenth International Conference on Information
S$stems' 0//%0/1(
This paper is (esi$ne( t" increase "#r 0n"wle($e ab"#t act#al ER implementati"n
practices& The research 7#esti"n is: @hat ER implementati"n variables appear t" be
critical t" s#ccess'#l implementati"ns an( what c"ntin$ency 'act"rs are ass"ciate( with
these 0ey ER implementati"n ch"icesG The case st#(y meth"("l"$y was #tilize( with a
the"retical samplin$ appr"ach&
The (epen(ent variable in the m"(el is the implementati"n appr"ach& The appr"ach t"
implementati"n (i''ers al"n$ 'ive (imensi"ns: the am"#nt "' mana$ement s#pp"rt,
c"mp"siti"n an( lea(ership "' the pr"+ect team, attenti"n t" chan$e mana$ement, #sa$e
"' .
r(
1party c"ns#ltants, an( mana$ement "' c"mple3ity&
The in(epen(ent variables are "r$anizati"nal characteristics, ER ac0a$e )apabilities
s"#$ht, the act#al pac0a$e ch"sen an( the sc"pe "' the pr"+ect& ;t is the"rize( by the
a#th"rs that these 'act"rs will in'l#ence the implementati"n appr"ach&
The selecti"n "' the case st#(y sites was base( "n a the"retical samplin$ meth"(& *"r
this st#(y, si3 c"mpanies will be paire( "n 0ey variables in an attempt t" el#ci(ate
the"retically1#se'#l 'in(in$s with a small set "' case st#(ies& *"r each case st#(y, "n1site
interviews with ;S an( n"n1;S sta0eh"l(ers an( "ther participants will be c"n(#cte(&
Semi str#ct#re( interview $#i(es, base( "n the the"retical 'ramew"r0, have been
(evel"pe(&
The res#lts sh"we( that the ER pac0a$e capabilities, whether meant t" s#pp"rt the
val#e1chain activities "r s#pp"rt activities, (i( in(ee( in'l#ence the implementati"n
appr"ach "' the s#b+ects&
..
Appen(i3 B Ann"tate( Bibli"$raphy
DeLone' ?( &( and E( R( McLean( *++,( >!e DeLone and McLean model o.
in.ormation systems success: A ten%year update( !ournal of Management
Information S$stems' /9:0' 9%,+(
;n this paper they (isc#ss many "' the imp"rtant ;S s#ccess research c"ntrib#ti"ns "' the
last (eca(e, '"c#sin$ "n the research e''"rts that apply, vali(ate, challen$e an( pr"p"se
enhancements t" the "ri$inal m"(el "' the a#th"rs& The '"c#s "' the paper is "n the
c"nstr#cts #se( t" meas#re ;S s#ccess&
Systems #se can be "ne meas#re "' ;S s#ccess& /"wever, the a#th"rs warn that this #se
sh"#l( be in'"rme( an( e''ective #se "' the system& They ar$#e that the ch"ice "'
s#ccess variable is "'ten a '#ncti"n "' the "b+ective "' the st#(y an( the "r$anizati"nal
c"nte3t "' the st#(y& They pr"p"se a((in$ service 7#ality as a s#ccess 'act"r& -ther
s#ccess 'act"rs incl#(e in'"rmati"n 7#ality, system 7#ality, #se, #ser satis'acti"n an( net
bene'its& <et bene'its incl#(e b"th in(ivi(#al an( "r$anizati"nal impacts& This paper
als" pr"p"ses a set "' ec"mmerce s#ccess metrics&
Duplaga' E( A( and M( Astani( *++,( Implementing ERP in manu.acturing(
Information S$stems Management' *+:,' 13%42(
This st#(y '"c#ses "n rec"$nizin$ the pr"blems enc"#ntere( by "r$anizati"ns in
implementin$ ER systems& They c"n(#cte( 'ace1t"1'ace interviews with pers"ns at .0
man#'act#rin$ 'irms in the 5pper ?i(west "' the 5S& ;n each "r$anizati"n, the pers"n
interviewe( was (irectly resp"nsible '"r "verseein$ the ER implementati"n pr"+ect&
The ma+"rity "' the in(ivi(#als interviewe( were 'r"m the ;S area& Each interviewee was
as0e( t" resp"n( t" the same set "' 7#esti"ns, which incl#(e( b"th "pen an( cl"se(
'"rms&
*irms were cate$"rize( by the n#mber "' empl"yees t" help (etermine i' c"mpany size
has any impact "n the res#lts& The reas"ns '"r the ER implementati"n were (i''erent '"r
small an( lar$e c"mpanies& The t"p 'ive reas"ns were t" impr"ve c"ntr"l "' in'"rmati"n
res"#rces, "verc"me ine''iciencies "' le$acy systems, inte$rate '#ncti"nal areas2
in'"rmati"n systems, s#pp"rt s#pply1chain mana$ement an( s#pp"rt a(vance( plannin$
an( sche(#lin$ systems&
The interviewees were as0e( t" rate several pr"blems i(enti'ie( in the literat#re as
impe(iments t" ER implementati"n s#ccess as t" h"w m#ch "' a pr"blem they were in
their implementati"n pr"cess& The resp"nses (i''ere( (epen(in$ "n c"mpany size as they
(i( with the reas"ns '"r ER implementati"n& =ac0 "' ER trainin$ an( e(#cati"n was
the t"p rate( pr"blem '"r b"th lar$e an( small 'irms& The sec"n( hi$hest rate( pr"blem
was lac0 "' in1h"#se e3pertise in ER& This was '"ll"we( by lac0 "' (ata acc#racy an(
lac0 "' c"mpanywi(e s#pp"rt an( inv"lvement& Small an( me(i#m c"mpanies rate( lac0
"' clear $"als '"r ER e''"rt am"n$ the t"p 'ive pr"blems& =ar$e c"mpanies c"nsi(ere(
lac0 "' t"p mana$ement c"mmitment an( s#pp"rt& ;n the "pen1en(e( 7#esti"ns, "ne
a((iti"nal pr"blem was i(enti'ie(: .0 percent "' the resp"n(ents 'elt that resistance t"
chan$e was a ma+"r pr"blem in their implementati"n e''"rt&
.4
Appen(i3 B Ann"tate( Bibli"$raphy
The ne3t set "' 7#esti"ns (ealt with s#ccess "' the implementati"n& The lar$e 'irms
(e'ine( s#ccess in terms "' c"mpletin$ the pr"+ect "n time an( within b#($et, with"#t
(isr#pti"ns t" n"rmal b#siness an( with #ser acceptance "' the implemente( system&
Small an( me(i#m 'irms relate( s#ccess t" achievin$ a sh"rt (#rati"n "' implementati"n&
They als" 'elt that ER systems that were "n1time an( within b#($et, maintaine( (ata
inte$rity an( system w"r0s well as imp"rtant 'act"rs t" meas#rin$ s#ccess&
Francalanci' C( *++/( Predicting t!e implementation e..ort o. ERP pro8ects:
Empirical evidence on SAPR,( !ournal of Information #echnolog$' /1' ,,%03(
The "b+ective "' this paper is the"retical (isc#ssi"n an( empirical testin$ "' pre(ictin$
ER implementati"n c"sts& The size an( c"mple3ity (imensi"ns "' a pr"+ect were the
$eneral (rivers "' the implementati"n e''"rt& The size "' the ER pr"+ect was meas#re(
as the n#mber "' m"(#les an( s#b m"(#les that are implemente( an( the implementati"n
e''"rt meas#re( as the h#man time (ev"te( t" implementati"n activities& -ther
c"nte3t#al 'act"rs were e3pecte( t" a''ect the implementati"n pr"cess s#ch as
"r$anizati"nal size, t"tal n#mber "' #sers, an( the per1m"(#le n"& "' #sers&
The (ata was c"llecte( 'r"m ei$ht c"ns#ltin$ c"mpanies "n a t"tal "' 4. SA
implementati"n pr"+ects& A 7#esti"nnaire was prepare( '"r c"llectin$ b"th the
7#antitative (ata "n SA pr"+ects an( 7#alitative (escripti"ns '"r helpin$ in interpretati"n
"' the 'in(in$s& ?#ltivariate linear re$ressi"n was #se( t" eval#ate the (ata& -verall, the
m"(els were statistically si$ni'icant, th#s in(icatin$ that the technical size an(
"r$anizati"nal c"mple3ity "' pr"+ects are relevant (rivers "' implementati"n e''"rt& This
empirical evi(ence a''ects s#ccess beca#se i' e''"rt is re(#ce( then the chances '"r
li0elih""( will be increase(&
@e.en' D( and C( M( Ridings( *++*( Implementation team responsiveness and user
evaluation o. customer relations!ip management: A Auasi%e<perimental design
study o. social e<c!ange t!eory( !ournal of Management Information S$stems' /9:/'
04%19(
The p#rp"se "' the st#(y is t" (etermine whether resp"nsiveness t" #ser re7#ests in real1
w"rl( settin$s is a pla#sible ca#se "' increase( 'av"rable #ser assessments "' the
c"rrectness "' the c"n'i$#rati"n an(, thr"#$h these assessments, #ser willin$ness t" a("pt
the system&
SET !S"cial E3chan$e The"ry% views interpers"nal interacti"ns 'r"m a c"st1bene'it
perspective& e"ple will en$a$e in e3chan$es when they view that the rewar(s 'r"m the
e3chan$e will "#twei$h the c"sts "' the e3chan$e& The a#th"rs #se this the"ry t" e3plain
that the resp"nsiveness "' the implementati"n team lea(s the #ser t" believe that the team
has c""perative intenti"ns an( this will lea( t" a 'in(in$ by the #ser "' c"n'i$#rati"n
c"rrectness an( #ser appr"val "' the ER m"(#le&
The (ata was c"llecte( "nsite at the implementati"n "' a )R? in a lar$e
telec"mm#nicati"ns c"mpany& The e3perimental instr#ment !s#rveys% was (istrib#te( t"
.5
Appen(i3 B Ann"tate( Bibli"$raphy
#sers wh" ha( alrea(y interacte( with the implementati"n team& The (ata was analyze(
#sin$ 'act"r analysis an( stepwise linear re$ressi"n&
The res#lts "' the st#(y sh"we( that perceive( resp"nsiveness "' the implementati"n
team increase( c""perative intenti"ns as perceive( by the #ser& Als", c""perative
intenti"ns lea( t" percepti"ns "' c"n'i$#rati"n c"rrectness an( #ser appr"val as
hyp"thesize(&
&ayes' D( C(' &unton' ;( E( and ;( L( Rec)( *++/( Mar)et Reaction to ERP
implementation announcements( !ournal of Information S$stems' /2:/' ,%/3(
The "b+ective "' this research is t" e3amine h"w the capital mar0et resp"nse when a 'irm
ann"#nces that it plans t" implement an enterprise res"#rce plannin$ !ER% system& This
st#(y was the 'irst t" e3amine the e3tent t" which ER systems are (eeme( t" a(( mar0et
val#e t" b#siness "r$anizati"ns& Since the bene'its "' an ER implementati"n are
(i''ic#lt t" 7#anti'y, an( the c"st "' s#ch implementati"n is "'ten sta$$erin$, an empirical
investi$ati"n int" the e''ect an a("pti"n "n the st"c0 price helps t" 7#anti'y the mar0et
reacti"n&
The (epen(ent variable in the st#(y is the 'irm2s mar0et ret#rn& The main in(epen(ent
variable in the st#(y is the ann"#ncement "' an ER implementati"n& Several
m"(eratin$ 'act"rs were als" teste(& *irm size an( 'inancial health "' the 'irm were
teste( as m"(erat"rs "' the ca#se e''ect relati"nship& Small healthy 'irms an( lar$e
#nhealthy 'irms were e3pecte( t" $enerate m"re p"sitive mar0et ret#rns than small
#nhealthy 'irms wh" were e3pecte( t" be #nable t" sh"#l(er the 'inancial strain "' the
implementati"n& Als", the size "' the ER ven("r was c"nsi(ere( a m"(eratin$ 'act"r&
Speci'ically, lar$e ven("rs s#ch as SA an( e"ples"'t were e3pecte( t" create a lar$er
p"sitive mar0et ret#rn than small ven("rs !all "thers%&
The (ata was c"llecte( 'r"m 'irms havin$ ann"#nce( an ER implementati"n in the ei$ht
years 'r"m 1AA0 t" 1AA>& A'ter a(+#stments, A1 'irms were incl#(e( in the 'inal sample&
Re$ressi"n was #se( t" i(enti'y abn"rmal ret#rns '"r the sample 'irms (#rin$ the time in
which the ann"#ncement t" implement the ER was ma(e& The sample was (ivi(e( int"
small an( lar$e #sin$ the me(ian assets as the (ivi(in$ mar0& *inancially healthy 'irms
were th"se with H1sc"res $reater than 2&AA&
The mar0et (i( react si$ni'icantly an( p"sitively "verall t" the ann"#ncement "' the ER
implementati"n '"r the sample 'irms& The mar0et reacte( m"st p"sitively t"
ann"#ncements by small4healthy 'irms an( ne$atively t" ann"#ncements by
small4#nhealthy 'irms& There was less "' a (i''erence between the lar$e #nhealthy an(
lar$e healthy 'irms& The size "' the ER ven("r was si$ni'icantly ass"ciate( with mar0et
reacti"n t" ER ann"#ncements&
&aines' M( B( and D( L( @ood!ue( *++,( Implementation partner involvement and
)nowledge trans.er in t!e conte<t o. ERP implementations( International !ournal of
(uman-Computer Interaction' /1:/' *,%,3(
.6
Appen(i3 B Ann"tate( Bibli"$raphy
The tw" ma+"r 7#esti"ns a((resse( by this st#(y are1% /"w ("es the am"#nt "'
inv"lvement "' c"ns#ltants impact the pr"+ect "#tc"meG An( 2% /"w ("es the 0n"wle($e
hel( by the "r$anizati"n implementin$ an ER system impact the pr"+ect "#tc"meG
The (epen(ent variable in the st#(y is ER S#ccess& The in(epen(ent variables were the
level "' implementer 0n"wle($e an( s0ills an( c"ns#ltant inv"lvement& The (ata '"r the
st#(y were c"llecte( 'r"m 1> interviews with 12 (i''erent "r$anizati"ns in the 5&S& an(
E#r"pe& The interviews were semi1str#ct#re( an( m"st 7#esti"ns ha( an "pen1en(e(
nat#re& The 'act"rs ass"ciate( with ER s#ccess i(enti'ie( thr"#$h the interviews were
ass"ciate( with the in(epen(ent variables "' implementer 0n"wle($e an( s0ills an(
c"ns#ltant inv"lvement&
A(verse selecti"n re'ers t" the misrepresentati"n "' ability "' the a$ent& Several "' the
'irms state( that the c"ns#ltants learne( a l"t 'r"m #s an( th#s (i( n"t have the s0ills that
they represente( that they ha(& ?"ral hazar( re'ers t" the 'act that $"al (iscrepancies
may res#lt in acti"ns "n the part "' the c"ns#ltant !a$ent% that are n"t in the best interests
"' the implementer !principal%& 9#e t" these pr"blems with the c"ns#ltant2s behavi"r,
tw" 'act"rs were '"#n( t" be relevant& The 'irst act"r is the ability "' the implementer t"
c"ntr"l the c"ns#ltant2s behavi"r an( the sec"n( was the c"ns#ltant inv"lvement& Several
"' the mana$ers als" menti"ne( 0n"wle($e trans'er as an imp"rtant 'act"r '"r the s#ccess
"' the implementati"n& Trainin$ was an imp"rtant part "' this 'act"r&
;n this simple case st#(y, it is sh"wn that the level "' in1h"#se 0n"wle($e an( ability will
in'l#ence b"th the level "' c"ns#ltant inv"lvement as well as the ability "' the
implementer t" m"nit"r the c"ns#ltant2s behavi"r& This st#(y, $r"#n(e( in a$ency
the"ry, helps t" i(enti'y s"me imp"rtant evi(ence '"r which 'act"rs are imp"rtant t"
c"ntr"l '"r s#ccess'#l implementati"n&
&ong' C( and D( Cim( *++*( >!e critical success .actors .or ERP implementation:
An organi-ational .it perspective( Information ) Management' 0+:/' *2%0+(
;n this st#(y, the a#th"rs (e'ine the c"ncept "' "r$anizati"nal 'it "' ER an( empirically
e3amine its impact "n ER implementati"n s#ccess al"n$ with the m"(eratin$ r"les "'
ER implementati"n c"ntin$ency variables s#ch as ER a(aptati"n, pr"cess a(aptati"n,
an( "r$anizati"nal resistance& The in(epen(ent variable in this st#(y is "r$anizati"nal 'it&
The a#th"rs (e'ine "r$anizati"nal 'it as the c"n$r#ence between the "ri$inal arti'act "'
ER an( its "r$anizati"nal c"nte3t& The (epen(ent variable is ER implementati"n
s#ccess& ;mplementati"n "' an inn"vati"n is a (ynamic pr"cess "' a(aptati"n& Tw"
alternative appr"aches t" implementati"n "' ER are the a(aptati"n "' the pac0a$e t" the
"r$anizati"nal nee(s an( "r$anizati"nal a(aptati"n t" the pac0a$e& ?"st ER ven("rs
rec"mmen( pr"cess a(aptati"n by the "r$anizati"n an( (isc"#ra$e a(aptati"n "' the
s"'tware pac0a$e& The (epen(ent variable in the st#(y was ER implementati"n s#ccess
which was (e'ine( as the (e$ree "' (eviati"n 'r"m pr"+ect $"al in terms "' e3pecte( c"st,
time, system per'"rmance an( bene'its&
.8
Appen(i3 B Ann"tate( Bibli"$raphy
Three m"(eratin$ variables are (e'ine( in the st#(y& ER a(aptati"n level re'ers t" the
am"#nt "' a(aptati"n "' the ER s"'tware c"(e that is ma(e t" a(apt the ER t"
"r$anizati"nal nee(s& r"cess a(aptati"n is the level "' b#siness pr"cess reen$ineerin$
#n(erta0en in the implementati"n& -r$anizati"nal resistance res#lts 'r"m resistance (#e
t" +"b chan$es an( #ncertainty "' the new system&
A s#rvey was #se( t" c"llect (ata 'r"m 'irms that ha( implemente( ER& ;n1(epth
interviews with vari"#s ER pr"+ect mana$ers were c"n(#cte( t" e3amine the e3ternal
vali(ity "' the research m"(el& )"rrelati"n analysis was #se( '"r testin$ the base
relati"nship between "r$anizati"nal 'it "' ER an( ER implementati"n s#ccess& ER
a(aptati"n (i( m"(erate the relati"nship between "r$anizati"nal 'it an( ER
implementati"n s#ccess& r"cess a(aptati"n (i( als" m"(erate the relati"nship between
"r$anizati"nal 'it an( ER implementati"n s#ccess& -r$anizati"nal resistance was n"t
si$ni'icant&
&unton' ;( E(' Lippincott' :( and ;( L( Rec)( *++,( Enterprise resource planning
systems: Comparing .irm per.ormance o. adopters and nonadopters( International
!ournal of %ccounting Information S$stems' 0:,' /12%/30(
This st#(y e3amine( the l"n$it#(inal impact "' ER a("pti"n "n 'irm per'"rmance& The
a#th"rs pr"p"se( that l"n$1term 'inancial per'"rmance "' n"n1a("pters will be l"wer than
a("pters& The 'inancial meas#res #se( were ret#rn "n assets, ret#rn "n sales an( asset
t#rn"ver an( ret#rn "n investment& *"r lar$e 'irms, the a#th"rs pr"p"se that there will be
a si$ni'icant ne$ative ass"ciati"n between 'irm health an( per'"rmance& *"r small 'irms,
the a#th"rs pr"p"se that there will be a si$ni'icant p"sitive ass"ciati"n between 'irm
health an( per'"rmance&
Re$ressi"n analysis was #se( t" analyze the (ata c"llecte( thr"#$h c"mp#stat& The
res#lts in(icate( that, "n avera$e, ER a("ptin$ 'irms were sli$htly lar$er than n"n1ER
'irms when meas#re( by assets t" sales& -verall, ER a("pters ha( sli$htly better
per'"rmance than n"na("pters& The res#lts sh"w a p"sitive relati"nship between 'irm
per'"rmance an( 'irm size an( 'inancial health& As the 'irm size an( 'inancial health
increase(, there was a (ecrease in 'irm per'"rmance&
&unton' ;( E(' McEwen' R( A( and :( ?ier( *++*( >!e reaction o. .inancial analysts
to Enterprise Resource Planning "ERP# implementation plans( !ournal of
Information S$stems' /1:/' ,/%0+(
This st#(y investi$ate the e3tent t" which invest"rs believe that enterprise res"#rce
plannin$ !ER% systems enhance 'irm val#e by e3aminin$ chan$es in 'inancial analysts2
earnin$s pre(icti"ns be'"re an( a'ter they receive an ann"#ncement that a 'irm plans t"
implement an ER system& The a#th"rs p"sit that the ann"#ncement "' an ER
implementati"n will have a si$ni'icant p"sitive e''ect "n 'inancial analysts2 earnin$s
'"recasts& Tw" c"nte3t#al 'act"rs, 'irm size an( 'irm health are pr"p"se( t" m"(erate the
relati"nships between ann"#ncement an( analysts earnin$s pre(icti"ns& This
e3perimental st#(y #se( a c"mp#terize( case st#(y& The participants in the 2 I 2
.>
Appen(i3 B Ann"tate( Bibli"$raphy
e3periment were sell1si(e analysts w"r0in$ '"r a lar$e 'inancial services 'irm& The
treatment c"n(iti"ns were small vs& lar$e an( healthy vs& #nhealthy& The (epen(ent
variable was the (i''erence between the pre vs& p"st ann"#ncement earnin$s '"recasts&
The e3perimental res#lts sh"w that ER a("pti"n ann"#ncements have a si$ni'icant
p"sitive e''ect "n earnin$s pre(icti"ns& The 'in(in$s '"#n( a m"(erate interacti"n
between 'irm size an( 'inancial health an( earnin$s pre(icti"ns&
;arvenpaa' S( L( and :( Ives( /99/( E<ecutive involvement and participation in t!e
management o. in.ormation tec!nology( MIS Quarterl$' /2:*' *+2%**4(
E3ec#tive s#pp"rt is "'ten sai( t" be imp"rtant in the s#ccess "' ;T mana$ement& The
'"c#s "' this research is the )hie' e3ec#tive "''icer !)E-% an( his "r her r"le in ;T
mana$ement& They test alternative m"(els "' ;T #se are presente( an( teste(& E3ec#tive
participati"n is #se( t" re'er t" the )E-2s activities "r s#bstantive pers"nal interventi"ns
in the mana$ement "' ;T& E3ec#tive inv"lvement re'lects the (e$ree "' imp"rtance
place( "n in'"rmati"n techn"l"$y by the )E-& -r$anizati"nal c"n(iti"ns re'er t" the
in(#stry2s relative p"tential '"r pr"$ressive #se "' ;T&
Three m"(els were teste( in the st#(y& -ne m"(el ha( an in(epen(ent variable "'
e3ec#tive participati"n with a (epen(ent variable "' pr"$ressive #se "' ;T& r"$ressive
#se "' ;T is relate( t" the strate$ic #se "' ;T an( the (e$ree t" which ;T 'i$#res in '"r the
missi"n "' the c"mpany& The sec"n( m"(el ha( an in(epen(ent variable "' e3ec#tive
inv"lvement an( (epen(ent variable "' pr"$ressive #se "' ;T& The thir( m"(el ha(
e3ec#tive participati"n, "r$anizati"nal c"n(iti"ns an( e3ec#tive bac0$r"#n( as
in(epen(ent variables an( e3ec#tive inv"lvement as the intervenin$ variable an(
pr"$ressive #se "' ;T as the (epen(ent variable&
The sample c"nsiste( "' >. 'irms 'r"m '"#r in(#stries& S#rveys "' )E-s an( in'"rmati"n
systems mana$ers an( (ata 'r"m chairmen2s ann#al letters t" the st"c0h"l(ers res#lte( in
the (ata analyze( in the st#(y& The c"rrelati"ns s#$$est that e3ec#tive inv"lvement,
e3ec#tive participati"n, e3ec#tive a$e, an( '#ncti"nal bac0$r"#n( are si$ni'icantly
ass"ciate( with pr"$ressive #se "' ;T within the 'irm& E3ec#tive inv"lvement is
c"rrelate( with e3ec#tive participati"n an( "r$anizati"nal c"n(iti"ns, an( wea0ly
ass"ciate( with an e3ec#tive2s '#ncti"nal bac0$r"#n(& E3ec#tive participati"n is
ass"ciate( with a )E-2s a$e an( ten#re in a c"mpany&
Crum$!ol-' M(' @alliers' ;(' Coulianos' B( and B( A( M( Maiden( *+++(
Implementing enterprise resource planning pac)ages in di..erent corporate and
national cultures( !ournal of Information #echnolog$' /2:0' *14%*49(
ER pac0a$es are implemente( in c"mpanies with (i''erent c"rp"rate an( nati"nal
c#lt#res an( there is $r"win$ evi(ence that 'ail#re t" a(apt ER pac0a$e t" 'it these
c#lt#res lea(s t" pr"+ects which are e3pensive an( "ver(#e& This paper (escribes
research which synthesizes s"cial science the"ries "' c#lt#re in "r(er t" be able t" m"(el
an( pre(ict the impact "' c#lt#re "n ER pac0a$e implementati"n&
.A
Appen(i3 B Ann"tate( Bibli"$raphy
,n"wle($e meta1schema '"r m"(elin$ the s#r'ace an( (eeper mani'estati"ns "' c#lt#re
an( pre(icti"ns "' ER implementati"n pr"blems base( "n nati"nal c#lt#re (i''erences&
9ata was c"llecte( by interviews with sta0eh"l(er& The 7#esti"ns were (erive( 'r"m
rep"rts "' ma+"r pr"blems with ER implementati"ns an( previ"#s st#(ies "' c#lt#ral
impacts "' ER implementati"ns& Sh"rt 7#esti"nnaires an( interviews were #se( t" elicit
in'"rmati"n that c"n'irme( the (ata 'r"m the interviews&
)#lt#ral val#es were m"(ele( in schemas as they were i(enti'ie( in the interviews& The
i(enti'ie( c#lt#ral val#es e3tracte( as in'l#ences "n ER implementati"n s#ccess were
the imp"rtance place( "n trainin$, empl"yee +"b satis'acti"n, the imp"rtance "' systems
emp"werin$ the "r$anizati"n, inability "' the s"'tware t" meet speci'ic nee(s "' the
empl"yees, ability t" c"mply with l"cal le$islati"n, an( #ns#itable "peratin$
ass#mpti"ns&
Cumar' =(' Ma!es!wari' :( and E( Cumar( *++*( Enterprise resource planning
systems adoption process: A survey o. Canadian organi-ations( International
!ournal of Production Research' 0+:,' 2+9%2*,(
This research e3pl"res the 0ey c"nsi(erati"ns an( s#ccess'#l strate$ies in an ER
a("pti"n pr"cess s#ch as a("pti"n m"tivati"ns, initiati"n, 0ey players, +#sti'icati"n, ris0s
an( criteria '"r selecti"n "' pr"(#ct ven("r, pr"+ect mana$er an( implementati"n
partners& The 0ey #n(erlyin$ i(ea "' ER is #sin$ in'"rmati"n techn"l"$y t" achieve a
capability t" plan an( inte$rate enterprise1wi(e res"#rces& ER a("pti"n "r
implementati"n inv"lves a c"mple3 mi3 "' b"th techn"l"$ical inn"vati"n an(
"r$anizati"nal chan$e mana$ement& This paper '"c#ses "n empirically e3pl"rin$ the
typical activities an( iss#e in the ER a("pti"n pr"cess incl#(in$ a("pti"n initiati"n,
b#siness case (evel"pment, initial pr"+ect plans an( c"mm#nicati"n t" the "r$anizati"n&
9ata was c"llecte( 'r"m 1A )ana(ian "r$anizati"ns that have a("pte( ER "r are
eval#atin$ the a("pti"n "' an ER system& 9ata were c"llecte( by interviewin$ ER
pr"+ect mana$ers "r mana$ers resp"nsible '"r ER in their "r$anizati"ns an(
a(ministerin$ a 7#esti"nnaire&
A("pti"n initiati"n was str"n$ly in'l#ence( by the e3pecte( bene'its "' ER a("pti"n in
the "r$anizati"n& The t"p three bene'its i(enti'ie( were eliminatin$ re(#n(ant (ata entry
an( acc"mpanyin$ err"rs, impr"vin$ '#ncti"nality "' in'"rmati"n systems an( pr"vi(in$
better "r(er trac0in$ an( '#l'illment& The (ecisi"n t" initiate the ER a("pti"n was
(etermine( by t"p mana$ement in 84 percent "' the cases&
The ne3t step in the pr"cess is the b#siness case (evel"pment& The activities incl#(e( in
this cate$"ry are +#sti'icati"n, i(enti'icati"n "' ris0s, miti$ati"n "' ris0, eval#ati"n an(
selecti"n "' pr"(#ct, selecti"n "' implementati"n partners, an( sellin$ the i(ea t" the rest
"' the "r$anizati"n, selecti"n "' a lea(er !#s#ally a pr"+ect mana$er "r an e3ec#tive
40
Appen(i3 B Ann"tate( Bibli"$raphy
champi"n%, an( (evel"pin$ an initial plan& The t"p three +#sti'icati"ns were inte$rate(
an( better 7#ality "' in'"rmati"n, J2, rea(iness, an( ease "' mana$ement "' a sin$le
system vs& several inte$rate( systems& The t"p ris0s i(enti'ie( were c"st escalati"n,
availability an( retenti"n "' s0ille( pe"ple, level "' "r$anizati"nal chan$e an( #ser
acceptance& T" miti$ate these ris0s, mana$ers i(enti'ie( strate$ies #se(& These strate$ies
incl#(e( plannin$ an( pr"'essi"nal assistance, '"c#s "n chan$e mana$ement,
acc"#ntability "n mana$ement, an( investment in h#man res"#rces& T" help the
c"mpany with the implementati"n, several implementati"n partners were empl"ye(&
?a+"r partners selecte( were in(epen(ent c"ns#ltants, the ER ven("r an( the har(ware
ven("r&
?any criteria were i(enti'ie( in the (ata as imp"rtant c"nsi(erati"ns '"r ch""sin$ a
system& These c"nsi(erati"ns incl#(e( '#ncti"nality "' the system, systems reliability,
an( 'it with "r$anizati"n systems, available best practices in the system, cr"ss m"(#le
inte$rati"n an( ven("r rep#tati"n& The t"p tw" c"nsi(erati"ns '"r the selecti"n "' a
lea(er were the pr"+ect mana$ement s0ills an( '#ncti"nal e3perience "' the pers"n&
Lee' F( and ;( Lee( *+++( An ERP implementation case study .rom a )nowledge
trans.er perspective( !ournal of information #echnolog$' /2:*' *3/%*33(
This article is part "' a l"n$it#(inal st#(y base( "n the ER implementati"n at the
5niversity "' <ebras0a& This article will i(enti'y the types "' 0n"wle($e trans'erre(
(#rin$ an ER implementati"n an( the 'act"rs a''ectin$ this trans'er& Tw" types "'
0n"wle($e are i(enti'ie(, tacit "r e3plicit& E3plicit 0n"wle($e is 0n"wle($e is visible
an( e3pressible& E3plicit 0n"wle($e is trans'erable in a '"rmal systematic way& Tacit
0n"wle($e, "n the "ther han(, is ass"ciate( with in(ivi(#al e3periences an( is (i''ic#lt t"
c"(e& The a#th"rs (ivi(e implementati"n int" tw" phases: implementati"n an(
inte$rati"n& ;mplementati"n is (e'ine( as the (e$ree t" which the recipient #nit '"ll"ws
the '"rmal r#les implie( by the practice& ;nte$rati"n re'ers t" the Kstate in which the
empl"yees at the recipient #nit attach symb"lic meanin$ t" the practice&
The main ar$#ment "' the a#th"rs is that the b#siness r#les ass"ciate( with pr"cesses "'
ER c"n'lict with e3istin$ "r$anizati"nal val#es ca#sin$ implementati"n pr"blems& This
st#(y was base( "n in1(epth interviews, pr"cess analysis an( ("c#mentati"n analysis&
Analysis "' the implementati"n by the a#th"rs came t" three imp"rtant c"ntrib#ti"ns t"
"#r #n(erstan(in$ "' ER implementati"ns& The a#th"rs n"te( that ER
implementati"ns (i''ere( si$ni'icantly 'r"m "ther implementati"ns "' techn"l"$y (#e t"
the in'l#ence "n the "r$anizati"n2s practices& The res#lts 'r"m this st#(y s#$$est that the
ER implementati"n pr"cess sh"#l( be #n(erst""( by (istin$#ishin$ the implementati"n
pr"cess 'r"m the inte$rati"n pr"cess& Thir(ly, this st#(y a((s t" "#r #n(erstatin$ "'
"r$anizati"nal capability '"r internalizin$ b#siness pr"cesses in the li$ht "' an ER
implementati"n&
Ma$ert' =( A(' Soni' A(' and M( A( =en)ataramanan( *++,( Enterprise resource
planning: Managing t!e implementation process( European !ournal of "perational
Research' /01:*' ,+*%,/0(
41
Appen(i3 B Ann"tate( Bibli"$raphy
This paper empirically investi$ates whether there are 0ey (i''erences in the appr"aches
by c"mpanies that mana$ement their implementati"ns D"n1timeE an( 4"r D"n4#n(er1
b#($etE vers#s the 'irms that (i( n"t& The a#th"rs i(enti'ie( several 'act"rs that
c"mpanies that ha( s#ccess'#l implementati"ns ha( in c"mm"n& They $r"#pe( these
c"mm"n characteristics by three cate$"ries: plannin$ e''"rts, implementati"n (ecisi"ns,
an( implementati"n mana$ement& lannin$ e''"rt re'ers t" all 'act"rs that have t" be
a((resse( in the plannin$ sta$es be'"re the start "' the pr"+ect& These incl#(e s#ch
variables as e3ec#tive s#pp"rt an( inv"lvement in the plannin$ "' the pr"+ect, the ma0e#p
"' the implementati"n team, an( a((ressin$ 0ey techn"l"$y iss#es& ;mplementati"n
(ecisi"ns re'er t" strate$ic "pti"ns "n h"w t" c"n(#ct the implementati"n& These incl#(e
s#ch plannin$ (ecisi"ns as whether t" implement #sin$ the Bi$1Ban$ appr"ach "r the
phase(1in appr"ach, an( the am"#nt "' s"'tware c#st"mizati"n an( reen$ineerin$ t"
c"mplete& The thir( critical area is implementati"n mana$ement itsel', re'errin$ t" all
variables4acti"ns (#rin$ the implementati"n&
A s#rvey was maile( t" 280 'irms ran("mly selecte( 'r"m th"se havin$ implemente( "r
in the pr"cess "' implementin$ ER systems& The (ata was analyze( #sin$ re$ressi"n&
The 'act"rs '"#n( t" be si$ni'icant were str"n$ e3ec#tive sp"ns"rship, str"n$ e3ec#tive
inv"lvement, emp"were( ER steerin$ c"mmittee, (evel"pe( clear e(#cati"n an(
trainin$ strate$ies, ha( techn"l"$y4in'rastr#ct#re in place, benchmar0e( implementati"n
pr"$ress a$ainst clear milest"nes "r per'"rmance metrics, all"we( ER c"mmittee t"
ma0e 0ey (ecisi"ns, c"mm#nicate( re$#larly with all wh" w"#l( be impacte(, traine( all
wh" w"#l( be #sin$ the system, 0ept s#ppliers4c#st"mers in'"rme( an( ma(e ma+"r
m"(i'icati"ns t" system&
Alth"#$h these 'act"rs were '"#n( t" be si$ni'icant, it was imp"rtant t" (etermine which
were the m"st imp"rtant '"r "n1time implementati"ns an(4"r #n(er1b#($et
implementati"ns& A c"mp"site "' plannin$ variables, m"(i'icati"ns t" the system,
c"mm#nicate( pr"$ress re$#larly an( 0ept s#ppliers an( c#st"mers in'"rme( were the
m"st imp"rtant 'act"rs '"r #n(er1b#($et an( "n1time implementati"n s#ccess&
Ma$ert' =( A(' Soni' A(' M( A( =en)ataramanan( *++,( >!e impact o. organi-ation
si-e on enterprise resource planning "ERP# implementations in t!e ES
manu.acturing sector( "mega' ,/:,' *,2%*01(
The primary "b+ective "' this pr"+ect is t" st#(y the impact "' the "r$anizati"n size "n
ER a("pti"n an( implementati"n& The in(epen(ent variable in this st#(y is the size "'
the c"mpany& The (epen(ent variables are the reas"n '"r the implementati"n, am"#nt "'
ER '#ncti"nality empl"ye(, c#st"mize ER s"'tware, implementati"n meth"( !m"(#le
"r bi$1ban$%, an( type "' bene'its en+"ye(& 9i''erences base( "n c"mpany size were als"
'"#n( in c"st t" implement, the c"st brea0("wns by cate$"ry, an( the implementati"n
time& -r$anizati"nal size can be (e'ine( in tw" ways, by n#mber "' empl"yees "r by
reven#es& Reven#es were #se( in this st#(y&
Thirteen c"mpanies were #se( '"r a case st#(y "' the initial pr"p"siti"ns& The
in'"rmati"n 'r"m the case st#(ies was #se( t" (evel"p the s#rvey 7#esti"nnaire '"r the
42
Appen(i3 B Ann"tate( Bibli"$raphy
br"a(er st#(y "' ER practice an( e3periences& The s#rvey an( c"ver letter were maile(
t" a ran("mly selecte( sample "' 5000 A;)S members empl"ye( in man#'act#rin$
c"mpanies in the 5S& The "verall resp"nse rate was A&6 percent&
@ith respect t" m"tivati"nal 'act"rs, 'ive 'act"rs (i''ere( with respect t" whether the ER
a("pter was a lar$e "r small 'irm& These 'act"rs were s"lve the J2, pr"blem !small%,
ease "' #p$ra(in$ systems !=ar$e%, simpli'y an( stan(ar(ize systems !lar$e%, $ain
strate$ic a(vanta$e !lar$e%, an( lin0 t" $l"bal activities !lar$e%& =ar$e 'irms were m"re
li0ely t" have phase(1in the ER system by m"(#le "r phase(1in by site, whereas small
'irms were m"re li0ely t" have #se( the bi$1ban$ appr"ach& Small 'irms were less li0ely
t" c#st"mize the pac0a$es& Small 'irms were m"re li0ely t" a("pt a sin$le ER pac0a$e
whereas lar$e 'irms were m"re li0ely t" ch""se a sin$le ER system b#t t" a(( Db"lt1"nE
systems where nee(e( t" a(( t" the "verall '#ncti"nality "' the system& The s"#rce "' the
c"st t" the 'irms "' the implementati"n (i''ere( by the size "' the c"mpany& Small 'irms
'"#n( that s"'tware an( har(ware c"sts were si$ni'icantly lar$er than the percenta$e "'
these c"sts t" t"tal c"st '"r the lar$e 'irms& =ar$er 'irms e3perience( si$ni'icantly lar$er
pr"p"rti"n "' their c"sts in the implementati"n team& )"ns#ltin$ an( trainin$ were the
same '"r b"th lar$e an( small 'irms& ;nte$rati"n "' b#siness pr"cesses, availability "'
in'"rmati"n an( 7#ality "' in'"rmati"n are the areas m"st p"sitively impacte(&
Ma$ert' =( A(' Soni' A(' M( A( =en)ataramanan( *+++( Enterprise resource
planning survey o. E(S( manu.acturing .irms( Production and Inventor$
Management !ournal' 0/:*' 2*%23(
The "b+ective "' the st#(y was t" (etermine the e3tent "' pac0a$e( ER system #se in
man#'act#rin$ 'irms, the m"tivati"n t" p#rs#e s#ch an applicati"n, the implementati"n
e3perience, an( bene'its "btaine(& The s#rvey was (evel"pe( an( maile( t" a ran("mly
selecte( set "' A;)S members empl"ye( in the 5S& The (ata c"llecte( reveale( a
n#mber "' imp"rtant 'acts '"r b#sinesses&
*irst, the planne(4 act#al #se "' ER systems is pervasive in the 5&S& man#'act#rin$
sect"r, with b"th lar$e an( small 'irms a("ptin$ systems& ER ("es n"t appear t" be a
passin$ 'a(, $iven the investment e3pen(e( an( the time re7#ire( t" implement& The
m"ve t" a pac0a$e.( ER system represents a $reater res"#rce c"mmitment '"r small
'irms, with lar$er enterprises ta0in$ a(vanta$e "' ec"n"mics "' scale& There is a c"mm"n
c"re "' '#ncti"nal m"(#les '"r man#'act#rin$ 'irms that have been implemente( m"st
're7#ently, with s"me c#st"mizati"n re7#ire(& ER system implementati"n bene'its are
c"ncentrate( m"re 7#ic0ly pr"vi(in$ hi$h17#ality in'"rmati"n within the 'irm&
Mar)us' M( L(' A<line' S(' Petrie' D( and C( >anis( *+++( Learning .rom adopters6
e<periences wit! ERP: Pro$lems encountered and success ac!ieved( !ournal of
Information #echnolog$' /2:0' *02%*12(
This paper (escribes the res#lts "' a st#(y "' pr"blems an( "#tc"mes in ER pr"+ects an(
was c"n(#cte( #n(er the sp"ns"rship "' an ER ven("r& Tw" basic research 7#esti"ns
4.
Appen(i3 B Ann"tate( Bibli"$raphy
are a((resse(: *irst, h"w s#ccess'#l are c"mpanies at (i''erent p"ints in time in their
ER e3periences, an( h"w are (i''erent meas#res "' s#ccess relate(G That is, can early
s#ccess be '"ll"we( by 'ail#re an( vice versaG Sec"n(, what pr"blems (" ER a("pters
enc"#nter as they implement an( (epl"y ER, an( h"w are these pr"blems relate( t"
"#tc"mesG
The (epen(ent variable in this st#(y is ER implementati"n s#ccess& The a#th"rs (e'ine
s#ccess (epen(ent #p"n the phase "' the ER implementati"n an( e3perience cycle&
These three phases are the pr"+ect phase, (#rin$ which ER s"'tware is c"n'i$#re( an(
r"lle( "#t, the sha0e("wn phase, (#rin$ which the c"mpany ma0es the transiti"n 'r"m
D$" liveE t" Dn"rmal "perati"nsE, an( the "nwar( an( #pwar( phase, (#rin$ which the
c"mpany capt#res the ma+"rity "' the b#siness bene'its "' the ER system& The a#th"rs
maintain that (i''erent meas#res "' s#ccess are necessary at each phase "' the pr"+ect&
The (ata c"llecti"n in this st#(y c"mbine( several meth"(s: !1% reviews "' p#blishe( an(
in1pr"cess research st#(ies an( teachin$ cases "' ER implementati"ns, !2% in1(epth case
st#(ies "' the ER e3perience in 'ive ER1a("ptin$ "r$anizati"ns, !.% interviews with 11
a((iti"nal ER1a("ptin$ "r$anizati"ns an( !4% appr"3imately 20 interviews with ER
implementati"n c"ns#ltants an( members "' the ER ven("r c"mpany sp"ns"rin$ this
st#(y&
*"r the pr"+ect phase, the m"st challen$in$ pr"blems rep"rte( by "#r resp"n(ents
inv"lve( s"'tware m"(i'icati"ns, system inte$rati"n, pr"(#ct an( implementati"n
c"ns#ltants an( t#rn"ver "' pr"+ect pers"nnel& *"r the sha0e("wn phase, several "' the
pr"blems were le't"vers 'r"m the pr"+ect phase that were n"t rec"$nize( an( a((resse(
(#rin$ that sta$e "' the pr"cess& Am"n$ these are appr"achin$ the ER implementati"ns
'r"m an e3cessively '#ncti"nal perspective, inappr"priately c#ttin$ pr"+ect sc"pe, c#ttin$
en(1#ser trainin$, ina(e7#ate testin$, n"t 'irst impr"vin$ b#siness pr"cesses an(
#n(erestimatin$ (ata 7#ality pr"blems an( rep"rtin$ nee(s& The m"st imp"rtant
pr"blems "bserve( in the "nwar( an( #pwar( phase were #n0n"wn b#siness res#lts,
(isapp"intin$ b#siness res#lts, lac0 "' ;T pers"nnel, an( #p$ra(in$ pr"blems&
Motwani' ;(' Mirc!andani' D(' Madan' M( and A( @unase)aran( *++*( Success.ul
implementation o. ERP pro8ects: Evidence .rom two case studies( International
!ournal of Production Economics' 02:/' 3,%91(
This paper a((resses tw" research 7#esti"ns: !1% @hat 'act"rs 'acilitate "r inhibit the
s#ccess "' ER pr"+ects, an( !2% @hat acti"ns can be ta0en t" brin$ tr"#ble( ER
pr"+ects #n(er c"ntr"lG This paper attempts t" answer these 7#esti"ns by e3aminin$ the
ER implementati"n e3periences "' tw" c"mpanies "ne #ns#ccess'#l an( the "ther
s#ccess'#l& The ma+"r thesis "' the a#th"rs is that there are several 'act"rs in the chan$e
envir"nment an( that envir"nment in'l#ences the ER ;mplementati"n mana$ement an(
then the ER "#tc"me&
The chan$e envir"nment is c"mp"se( "' c#lt#ral rea(iness, learnin$ capacity,
relati"nship balancin$, ;T levera$ability an( 0n"wle($e capability an( strate$ic
44
Appen(i3 B Ann"tate( Bibli"$raphy
initiatives& Strate$ic initiatives !reas"ns '"r implementin$ the ER% are "'ten incl#(e( in
the c"rp"rate strate$ic plan are 'r"m seni"r mana$ement an( are either reactive "r
pr"active in nat#re& =earnin$ capacity re'ers t" the ma+"r $"al "' learnin$: t" pr"vi(e
p"sitive "#tc"mes thr"#$h e''ective a(aptati"n t" envir"nmental chan$es an( impr"ve(
e''iciency in the pr"cess "' learnin$& -r$anizati"nal c#lt#re 'acilitates "r inhibits the
inte$rati"n "' in(ivi(#al learnin$ with "r$anizati"nal learnin$ by in'l#encin$ the
"r$anizati"n2s ability t" learn, share in'"rmati"n, an( ma0e (ecisi"ns& The r"le "' ;T in
the b#siness pr"cess chan$e pr"+ect can pr"m"te s#ccess "r 'ail#re, "'ten beca#se "' the
lac0 "' attenti"n t" the h#man c"mp"nents "' chan$e& The ability t" share in'"rmati"n,
'acilitate( by it, pr"m"tes 0n"wle($e capability, an( enhances an "r$anizati"n2s ten(ency
t" chan$e& Relati"nship balancin$ re'ers t" the ability t" partner with "#tsi(e s#ppliers
an( "ther sta0eh"l(ers in an( "#t "' the "r$anizati"n t" increase per'"rmance in chan$e
mana$ement&
ER implementati"n mana$ement is c"mp"se( "' tw" parts: chan$e mana$ement an(
pr"cess mana$ement& )han$e mana$ement inv"lves e''ectively balancin$ '"rces in 'av"r
"' a chan$e "ver '"rces "' resistance& r"cess mana$ement is (e'ine( as a set "' c"ncepts
an( practices aime( at better stewar(ship "' b#siness pr"cesses&
9ata was c"llecte( thr"#$h the analysis "' tw" case st#(ies& 9ata c"llecti"n meth"(s
incl#(e( st#(yin$ archival (ata an( c"n(#ctin$ interviews at vari"#s levels "' the
"r$anizati"ns& Speci'ic 7#esti"ns ab"#t characteristics "' the 'irms an( their envir"nment
were as0e( that were lin0e( t" "perati"nalizati"n "' the c"nstr#cts in the research m"(el
The case st#(y analysis reveal that an incremental, b#rea#cratic, strate$y le( ca#ti"#s
implementati"n pr"cess bac0e( with c#lt#ral rea(iness, inter1"r$anizati"nal lin0a$es
!with the ven("r%, an( care'#l chan$e mana$ement are 'act"rs that c"ntrib#te t"
s#ccess'#l ER implementati"ns, -n the "ther han(, a rev"l#ti"nary pr"+ect sc"pe that
man(ate( a#t"cratically by t"p mana$ement with"#t c#lt#ral !"r$anizati"nal% rea(iness
an( pr"per chan$e mana$ement is li0ely t" lea( t" tr"#ble( an( #ns#ccess'#l ER
pr"+ects&
Ba!' F( F(' Fuc)weiler' C( M( and ;( L( Lau( *++,( ERP implementation: C!ie.
in.ormation o..icers6 perceptions o. critical success .actors( International !ournal of
(uman-Computer Interaction' /1:/' 2%**(
This research investi$ates the critical s#ccess 'act"rs in ER implementati"n t" pr"vi(e a
better #n(erstan(in$ "' the 0ey 'act"rs lea(in$ t" implementati"n s#ccess& The a#th"rs
i(enti'ie( eleven 'act"rs as critical '"r s#ccess in an ER implementati"n& These 'act"rs
are appr"priate b#siness an( in'"rmati"n techn"l"$y le$acy systems, b#siness plan an(
visi"n, b#siness pr"cess reen$ineerin$, chan$e mana$ement c#lt#re an( pr"$ram,
c"mm#nicati"n, ER teamw"r0 an( c"mp"siti"n, m"nit"rin$ an( eval#ati"n "'
per'"rmance, pr"+ect champi"n, pr"+ect mana$ement, s"'tware (evel"pment, testin$ an(
tr"#blesh""tin$, t"p mana$ement s#pp"rt&
45
Appen(i3 B Ann"tate( Bibli"$raphy
@ith respect t" appr"priate b#siness an( in'"rmati"n techn"l"$y le$acy systems, the
m"re c"mple3 the le$acy system, the $reater the am"#nt "' techn"l"$ical an(
"r$anizati"nal chan$e re7#ire(& Beca#se ER implementati"ns #s#ally e3cee( the time
'rame '"r a typical b#siness pr"+ect, clear $"als, a b#siness plan, an( visi"n are nee(e( t"
$#i(e "n$"in$ "r$anizati"nal e''"rt& Enterprises sh"#l( be willin$ t" accept the
embe((e( best practice, an( m"(el their b#siness pr"cesses acc"r(in$ t" th"se (epicte(
by the system& Enterprise1wi(e c#lt#re an( str#ct#re chan$e sh"#l( be mana$e(&
E3pectati"ns "r $"als at every level nee( t" be c"mm#nicate(& The ER pr"+ect (eman(s
the e''"rt an( c""perati"n "' technical an( b#siness e3perts as well as en(1#sers&
?ilest"nes an( tar$ets nee( t" be actively m"nit"re( t" trac0 the pr"$ress "' an ER
pr"+ect& A pr"+ect champi"n is m"re imp"rtant in ER implementati"ns than in "ther ;S
implementati"ns beca#se ER s#ccess hin$es "n "verall "r$anizati"nal c"mmitment an(
perseverance& An in(ivi(#al "r $r"#p "' pe"ple sh"#l( be $iven resp"nsibility t" (rive
s#ccess in pr"+ect mana$ement& The "verall ER architect#re sh"#l( be establishe(
be'"re (epl"yment, ta0in$ int" acc"#nt the m"st imp"rtant re7#irements "' the
implementati"n& T"p mana$ement s#pp"rt is i(enti'ie( by many researchers as "ne "'
the 0ey s#ccess 'act"rs&
T" assess );-2s percepti"ns "' the critical s#ccess 'act"rs '"r ER implementati"n an(
the (e$ree t" which each 'act"r is c"nsi(ere( critical, a s#rvey was (evel"pe( an( maile(
t" the );-s "' *"rt#ne 1000 c"mpanies& 54 #sable resp"nses were ret#rne(& The res#lts
sh"we( that );-s rate( t"p mana$ement s#pp"rt, pr"+ect champi"n, ER teamw"r0 an(
c"mp"siti"n, pr"+ect mana$ement, an( chan$e mana$ement pr"$ram an( c#lt#re t" be
m"st critical t" ER implementati"n s#ccess&
Bewell' S(' &uang' ;( C(' @alliers' R( D( and S( L( Pan( *++,( Implementing
enterprise resource planning and )nowledge management systems in tandem:
Fostering e..iciency and innovation complementarity( Information and
"rganization' /,:/' *2%2*(
The '"c#s "' this paper is the e3pl"rati"n the impact "' the c"nc#rrent implementati"n "'
an Enterprise Res"#rce lannin$ !ER% an( a ,n"wle($e ?ana$ement !,?% system
within a sin$le case c"mpany& The a#th"rs pr"p"se that ER an( ,? systems are
(i''erent in their "rientati"n: with ER systems '"c#sin$ primarily "n e''iciency an( ,?
systems '"c#sin$ mainly "n 'le3ibility an( inn"vati"n& ;n "r$anizati"nal the"ry these
tw", e''iciency an( 'le3ibility are "'ten "pp"se( t" "ne an"ther&
The tw" main research 7#esti"ns were: !1% T" what e3tent (" ER an( ,? systems
c"mplement "r c"ntra(ict each "ther when they are implemente( within a sin$le
"r$anizati"n by '"c#sin$ "n the (i''erent "r$anizati"nal nee(s "' e''iciency an(
'le3ibilityG !2% T" what e3tent (" ER an( ,? systems rein'"rce each "ther, m#t#ally
stren$thenin$ their respective in'l#ence, when they are implemente( in a sin$le
"r$anizati"nG
46
Appen(i3 B Ann"tate( Bibli"$raphy
The research (escribe( in this paper is an interpretivist appr"ach& The interpretivist
para(i$m s#$$ests that meanin$s emer$e 'r"m the interacti"n "' s"cial act"rs&
;nterpretivist research meth"(s are aime( at pr"(#cin$ an #n(erstan(in$ "' the c"nte3t "'
the in'"rmati"n system, an( the pr"cess whereby the in'"rmati"n system in'l#ences an(
is in'l#ence( by the c"nte3t& Als", the interpretivist appr"ach attempts t" #n(erstan(
phen"mena thr"#$h the meanin$s that pe"ple assi$n t" them&
*ive s"#rces "' evi(ence were c"llecte( 'r"m .8 semi1str#ct#re( 'ace1t"1'ace interviews,
interviews via teleph"ne an( email, in'"rmal (ial"$#es with c"mpany empl"yees with"#t
any pri"r arran$ement, "n1site "bservati"n, an( e3aminin$ ("c#mentati"n& The
researchers #se( the pr"cess "' trian$#lati"n with m#ltiple interpretati"ns as a means "'
enhancin$ the vali(ity "' the 'in(in$s&
The a#th"rs '"#n( that b"th the ,? an( ER systems enc"#ra$e( the (evel"pment "'
metar"#tines an( t#rnin$ n"n1r"#tine tas0s t" r"#tine tas0s& /"wever, while the ,?
system enc"#ra$e( the (evel"pment "' new 0n"wle($e, the ER system (isc"#ra$e( this
pr"cess beca#se "' the embe((e( (epen(ence "n pre1(e'ine( an( pre1selecte( r"#tines&
-ne "' the 0ey res#lts in the case was that the ER system a("pti"n lea( t" a (rastic
re(#cti"n in the n#mber "' s#ppliers an( service pr"vi(ers& -ne ne$ative c"nse7#ence "'
the ER implementati"n was that there was a shi't in in'"rmati"n "wnership& This
ca#se( a c"nsi(erable resistance by the en$ineers t" the ER system& The "verall
c"ncl#si"n "' the a#th"rs was that the ER an( ,? systems were c"mplementary an(
a((e( t" b"th the e''iciency an( 'le3ibility "' the c"mpany in the case st#(y&
Parr' A( and @( S!an)s( *+++( A model o. ERP pro8ect implementation( !ournal of
Information #echnolog$' /2:0' *39%,+,(
This paper reviews the pr"cess m"(els '"r ER implementati"n by pr"p"sin$ a pr"+ect
phase m"(el "' ER implementati"n which is centere( "n the in(ivi(#al, (iscrete phases
"' the implementati"n pr"+ect itsel' rather than "ne which treats the pr"+ect as +#st an"ther
wh"le implementati"n enterprise& The pr"+ect phase m"(el "r ?, c"nsists "' tw"
parts: implementati"n phases an( critical s#ccess 'act"rs& The ? has three ma+"r
phases: plannin$, pr"+ect an( enhancement& The plannin$ phase incl#(es the selecti"n "'
an ER, assembly "' a steerin$ c"mmittee, (eterminati"n "' hi$h1level pr"+ect sc"pe an(
br"a( implementati"n appr"ach, selecti"n "' a pr"+ect team mana$er an( res"#rce
(eterminati"n& The pr"+ect phase e3ten(s 'r"m the i(enti'icati"n "' ER- m"(#les
thr"#$h t" installati"n an( c#t1"ver& The enhancement phase may e3ten( "ver several
years an( incl#(es the sta$es "' system repair, e3tensi"n an( trans'"rmati"n&
The critical s#ccess 'act"rs #se( in this st#(y were i(enti'ie( an( rep"rte( in an earlier
st#(y& These 'act"rs were mana$ement s#pp"rt, '#ll1time b#siness e3perts, emp"were(
(ecisi"n ma0ers, (eliverable an( realistic (ates, pr"+ect champi"n, vanilla ER !little
c#st"mizati"n%, smaller sc"pe pr"+ects, clear (e'initi"n "' sc"pe an( $"als, ri$ht balance
"n the implementati"n team "' e3perts, an( perseverance an( (eterminati"n with a
c"mmitment t" chan$e&
48
Appen(i3 B Ann"tate( Bibli"$raphy
)ase st#(y analysis was #n(erta0en in tw" c"mpanies that were implementin$ ER& The
st#(ies l""0e( at the imp"rtance "' each "' the )R*s at each phase "' the pr"+ect& A
n#mber "' imp"rtant similarities between the tw" cases were "bserve(& The plannin$
phase was clearly c"nsi(ere( the m"st critical by b"th c"mpanies& The installati"n phase
was very similar in b"th cases& There was n" si$ni'icant enhancement phase in either
c"mpany&
A n#mber "' imp"rtant (i''erences between the tw" cases are evi(ent& The imp"rtance "'
the )S* (i''ere( acr"ss the phases "' the implementati"n '"r the tw" cases& The tw"
c"mpanies (i''ere( in their emphasis "n the phases "' the implementati"n& The a#th"rs
n"te( that the (i''erences c"#l( be e3plaine( by the pr"cess "' "r$anizati"nal learnin$
an( the sc"pe an( c"mple3ity "' each pr"+ect&
R( Palaniswamy( *++*( An innovation%di..usion view o. implementation o.
enterprise resource planning "ER# systems and development o. a researc! model(
Information ) Management' 0+:*' 34%//0(
The p#rp"se "' this research was t" help e3plain the emer$in$ r"le "' ER in
"r$anizati"ns: e3plain the vari"#s c"nte3t#al 'act"rs ass"ciate( with the inn"vati"n an(
(i''#si"n "' vari"#s types "' ER systems: (evel"p a research m"(el #sin$ the case st#(y
'in(in$s an( base( "n literat#re ab"#t ;T implementati"n& ER systems help the
"r$anizati"n ma0e e''icient e3chan$es "' relevant (ata re$ar(in$ the pr"(#cti"n
pr"cesses an( their ass"ciate( a(ministrative tas0s&
The in(epen(ent variables in the m"(el are c"mp"se( "' 'ive c"nstr#cts: c"mpetitive
m"tives, e''iciency m"tives, technical m"tives, strate$ic m"tives an( "perati"ns m"tives&
)"mpetitive m"tives were the e3pecte( $r"wth in sales an( c"mpetitive press#res&
E''iciency m"tives were the nee( t" re(#ce cycle times an( c"st& Technical m"tives
incl#(e( the nee( t" chan$e 'r"m main'rame t" client1server type ;T architect#re, t"
alleviate inc"mpatibility am"n$ vari"#s (atabase types an( t" pr"vi(e #ni'"rm systems
acr"ss the "r$anizati"n& -perati"ns m"tives were emp"werin$ #sers, re1en$ineerin$ the
b#siness pr"cess an( enhancin$ "r$anizati"nal 'le3ibility& Strate$ic m"tives were
stan(ar(izin$ c"mpany pr"cesses, s#pp"rtin$ $l"balizati"n strate$y, "perati"nalizin$ the
visi"n "' the )E- an( re(#cin$ the time t" mar0et& These 'act"rs are th"se that increase
the acceptance an( r"#tinizati"n "' the ER system an( c"#l( serve as either 'acilitat"rs
"' the implementati"n "r barriers i' #sers (" n"t thin0 that they are present in the ER
system&
The research in this paper was c"n(#cte( thr"#$h a series "' case st#(ies in c"mpanies "'
vari"#s sizes that #se( (i''erent types "' ER systems& ;nterviews were c"n(#cte( with
written transcripts $iven t" the interviewees '"r appr"val& This all"we( '"r c"rrecti"n "'
misinterpretati"ns& The 7#esti"ns centere( "n a si3 sta$e m"(el "' ;T (i''#si"n
previ"#sly m"(ele( in the literat#re&
4>
Appen(i3 B Ann"tate( Bibli"$raphy
The main iss#es pertainin$ t" implementati"n were empl"yee t#rn "ver, resistance t"
chan$e, "ver r#n "' estimate( b#($et, increase( w"r0 l"a( in implementati"n pr"cess,
B#siness reen$ineerin$, #ser resistance, lac0 "' t"p mana$ement s#pp"rt an( trainin$&
/"wever, the a#th"rs '"#n( that the c"mpanies bene'ite( t" a $reater (e$ree than they
ha( anticipate( they w"#l( at the be$innin$ "' the implementati"n&
Ri$$ers' P( M( A( and C( Sc!oo( *++*( Program management and comple<ity o.
ERP implementations( Engineering Management !ournal' /0:*' 02%2*(
The central 7#esti"ns "' this article: /"w can the (esi$n "' pr"$ram mana$ement
c"ntrib#te t" the s#ccess "' c"mple3 s"'tware implementati"nsG /"w (" we (eal with
the c"mple3ity that lar$e implementati"n pr"+ects enc"#nter 'r"m chan$es "ver time an(
'r"m str"n$ inte$rati"n nee(sG
r"$ram mana$ement can be c"ncept#alize( as a c"ntr"llin$ instance '"r a
trans'"rmati"n pr"cess& The research m"(el ass#mes that the s#ccess "' s"'tware
implementati"n is (epen(ent "n the (esi$n "' pr"$ram mana$ement, whereas the latter is
a''ecte( by the c"mple3ity "' the s"'tware implementati"n& The a#th"rs pr"p"se three
meas#res "' c"mple3ity: variety, variability, an( inte$rati"n& Fariety re'lects the n#mber
"' elements an( their interrelati"ns in a $iven sit#ati"n "r system& Fariability "' a system
relate( t" the (ynamics "ver time "' its elements an( the interrelati"ns between them&
;nte$rati"n characterizes the planne( chan$es t" be realize( thr"#$h the implementati"n
pr"$ram&
)"mple3ity is e3pecte( t" e''ect the implementati"n pr"$ram mana$ement "n 'ive
elements& r"$ram "r$anizati"n is a''ect by c"mple3ity an( a''ects pr"$ram
mana$ement an( s#ccess'#l implementati"n& "licies that $#i(e pr"$ram mana$ement t"
per'"rm within $iven b#($ets, (ea(lines, re7#ire( acceptance levels an( $"al a(herence
were imp"rtant t" s#ccess& lans that ta0e the implementati"n $"als an( (rive the
pr"+ects within the pr"$ram are imp"rtant& )"mm#nicati"n '"r teams an( #sers t"
'acilitate pr"blem s"lvin$ is necessary& The pr"$ram sh"#l( be in line with the b#siness
(irecti"n "' the c"mpany #s#ally re'erre( t" as ali$nment&
S#ccess "' a pac0a$e implementati"n, the (epen(ent variable, pertains t" the
implementati"n pr"cess an( its2 res#lts& The s#ccess was meas#re( by the level "' #se "'
the new system an( pr"ce(#res, level "' c"ntrib#ti"n "' the pr"$ram (eliverable t" the
c"mpany an( the level "' a(herence t" the time plan an( b#($et '"r the implementati"n&
The a#th"rs c"n(#cte( 'i'teen case st#(ies t" c"llect empirical evi(ence '"r the pr"p"se(
'ramew"r0& Each "' the cases represente( a s#ccess'#l implementati"n t" (i''erin$
(e$rees& S"me "' the cases ha( "ne "r m"re "' the s#ccess 'act"rs missin$ as "#tline
ab"ve& The a#th"rs rate( the c"mple3ity "' the s"'tware implementati"n an( then
c"mpare( their ratin$s am"n$ the three 'act"rs "' variety, variability an( inte$rati"n an(
c"mpare( them t" mana$ers "' the c"mpany2s ratin$s "' c"mple3ity& The 'in(in$s '"#n(
the ratin$s t" be e7#ivalent t" the a#th"rs2 ratin$s& The 'in(in$s were that c""r(inati"n
4A
Appen(i3 B Ann"tate( Bibli"$raphy
with s#ppliers was imp"rtant '"r s#ccess'#l implementati"n& *le3ibility in the
implementati"n pr"cess was imp"rtant&
Ro$ey' D(' Ross' ;( ?(' and M( :oudreau( *++*( Learning to implement enterprise
systems: An e<ploratory study o. t!e dialectics o. c!ange( !ournal of Management
Information S$stems' /9:/' /4%01(
The p#rp"se "' this research was t" impr"ve ER implementati"n& The st#(y is l""0in$
at the pr"cess "' (ialectic between "l( mem"ry an( new 0n"wle($e& -r$anizati"nal
members m#st ac7#ire c"mple3 new 0n"wle($e an( sim#ltane"#sly #nlearn what they
alrea(y 0n"w& The e''ects "' this pr"cess "n ER implementati"n are e3pl"re(&
This st#(y empl"ye( a c"mparative case st#(y (esi$n& The research sample c"nsists "'
1. <"rth American man#'act#rin$ 'irms "r (ivisi"ns that ha( implemente( "ne "' '"#r
ma+"r ER pac0a$es& 9ata c"llecti"n c"nsiste( "' str#ct#re( teleph"ne interviews with
three pe"ple at each c"mpany: a pr"+ect sp"ns"r, a pr"+ect mana$er an( a line mana$er
wh"se "perati"ns ha( been a''ecte( by ER implementati"n& The interview pr"t"c"l
incl#(e( 7#esti"ns ab"#t the sc"pe an( m"tivati"n '"r the implementati"n, "#tc"mes,
ma+"r challen$es an( iss#es an( '#t#re e3pectati"ns&
*"r resp"n(ents in the st#(y, the primary "bstacle t" implementin$ ER systems an( new
b#siness pr"cesses enable( by ER nee(e( t" rec"ncile the (eman(s '"r new 0n"wle($e
with their 0n"wle($e "' "l( systems an( pr"ce(#res& This is the essence "' the (ialectic
"' chan$e& )"re teams "' b#siness e3perts were #se( t" help "verc"me these 0n"wle($e
barriers in implementati"ns& The ma+"r barriers were the pr"cess "' learnin$ t" c"n'i$#re
the new s"'tware which was lar$e an( c"mple3 an( the chan$e '"r "l( b#siness pr"cesses
'"#n( necessary in the implementati"n& )"ns#ltants were als" #se( t" "verc"me
0n"wle($e barriers& T" "verc"me the pr"blems ass"ciate( with the new b#siness
practices, trainin$ "' #sers an( sta0eh"l(ers was #n(erta0en& The appr"ach t"
implementati"n als" a''ecte( the (e$ree t" which 0n"wle($e barriers were present&
Th"se 'irms #sin$ a piecemeal appr"ach seeme( t" have an easier time "verc"min$
0n"wle($e barriers than 'irms that a("pte( a c"ncerte( appr"ach& *irms p#rs#in$ a
c"ncerte( chan$e appr"ach t""0 "n the challen$e "' chan$in$ systems an( pr"cesses
sim#ltane"#sly, which create( $reater learnin$ re7#irements&
Sar)er' S and A( S( Lee( *++,( Esing a case study to test t!e role o. t!ree )ey social
ena$lers in ERP implementation( Information ) Management' 0+:3' 3/,%3*9(
The a#th"rs s#pp"se that base( "n the review "' the literat#re, the h#man 'act"rs
ass"ciate( with the implementati"n "' ER are m"re imp"rtant that the technical "r
ec"n"mic 'act"rs& The a#th"rs '"c#s "n three s"cial enablers an( their relati"nship with
ER implementati"n s#ccess&
These s"cial enablers, in(epen(ent variables in the m"(el, are str"n$ an( c"mmitte(
lea(ership, "pen an( h"nest c"mm#nicati"n an( a balance( an( emp"were( ER
implementati"n team& Str"n$ an( c"mmitte( lea(ership re'ers t" mana$ement s#pp"rt,
50
Appen(i3 B Ann"tate( Bibli"$raphy
stren$th an( a#th"rity "' lea(er, an( the r"le "' the t"p mana$ement& )"mm#nicati"n
re'ers t" "pen an( h"nest c"mm#nicati"ns at all levels "' the mana$ement an( #sers an(
all phases "' the pr"+ect& A balance( an( emp"were( ER implementati"n team with
have members with a variety "' s0ills 'r"m (i''erent areas an( emp"were( '"r sel'
mana$ement&
The a#th"rs empl"ye( a sin$le1case st#(y t" test '"r the imp"rtance "' these 'act"rs in
ER implementati"n s#ccess& The b#l0 "' the (ata was c"llecte( by c"n(#ctin$
interviews with several sta0eh"l(ers& This (ata was s#pplemente( with (irect
"bservati"ns, c"mpany ("c#ments, e1mails, an( in'"rmal interviews t" trian$#late the
'in(in$s&
The 'in(in$s "' the st#(y were that while all three enablers may c"ntrib#te t" ER
implementati"n s#ccess, "nly str"n$ an( c"mmitte( lea(ership can be empirically
establishe( as a necessary c"n(iti"n&
M( Sumner( *+++( Ris) .actors in enterprise%wide ERP pro8ects( !ournal of
Information #echnolog$' /2:0' ,/4%,*4(
The p#rp"se "' this st#(y was t" (evel"p a better #n(erstan(in$ "' the ma+"r ris0 'act"rs
ass"ciate( with enterprise1wi(e4ER pr"+ects& Ris0 is (e'ine( as a pr"blem that has n"t
yet happene( b#t which c"#l( ca#se s"me l"ss "r threaten the s#ccess "' y"#r pr"+ect i' it
(i(& The ris0 'act"rs were i(enti'ie( 'r"m a literat#re review&
Ei$ht ris0 'act"rs were i(enti'ie(& -r$anizati"nal 'it re'ers t" res"#rce ins#''iciency an(
e3tent "' chan$es& S0ill mi3 re'ers t" the lac0 "' 0n"wle($e an( technical e3pertise&
?ana$ement str#ct#re an( strate$y re'ers t" lac0 "' a$reement "n pr"+ect $"als an( lac0
"' seni"r mana$ement inv"lvement& S"'tware systems (esi$n re'ers t" mis#n(erstan(in$
re7#irements an( chan$es in re7#irements, lac0 "' an e''ective meth"("l"$y, p""r
estimati"n an( 'ail#re t" per'"rm the activities nee(e(& 5ser inv"lvement an( trainin$
re'ers t" lac0 "' #ser c"mmitment an( ine''ective c"mm#nicati"ns with #sers an(
c"n'licts between #ser (epartments& Techn"l"$ical plannin$ re'ers t" lac0 "' a(e7#ate
techn"l"$y, straine( technical capabilities an( 'ail#re "' techn"l"$y t" meet
speci'icati"ns an( technical c"mple3ity& r"+ect mana$ement re'ers t" #nrealistic
sche(#les an( b#($ets, pe"ple an( pers"nality 'ail#res, lac0 "' e''"rt, anta$"nistic
attit#(es an( pe"ple clashes& S"cial c"mmitment re'ers t" the inability t" rec"$nize
pr"blems, an( a ten(ency t" 0eep p"#rin$ res"#rces int" a 'aile( pr"+ect an( #nrealistic
e3pectati"ns&
The (ata was c"llecte( thr"#$h seven case st#(ies& The ris0 'act"rs i(enti'ie( in the
interviews were "r$anize( int" the cate$"ries ab"ve& Rec"mmen(ati"ns an( implicati"ns
'"r practiti"ners were "''ere(& The 'in(in$s "' the st#(y were that the ris0 'act"rs "' the
literat#re review were '"#n( t" be present in the case st#(ies #n(erta0en by the a#th"rs&
The a#th"rs '"#n( that s"me "' the 'act"rs were speci'ic t" case st#(ies, "r$anizati"nal
'it, s0ill mi3, s"'tware systems (esi$n an( techn"l"$y plannin$ an( inte$rati"n&
51
Appen(i3 B Ann"tate( Bibli"$raphy
Em$le' E( ;(' &a.t' R( R(' and M( M( Em$le( *++,( Enterprise resource planning:
Implementation procedures and critical success .actors( European !ournal of
"perational Research' /01:*' *0/%*24(
This paper reviews the critical s#ccess 'act"rs an( implementati"n pr"ce(#res m"st "'ten
cite( in the literat#re as imp"rtant an( teste( them empirically thr"#$h a case st#(y
pr"ce(#re& The a#th"rs (e'ine implementati"n s#ccess i' it achieves a s#bstantial
pr"p"rti"n "' its p"tential bene'its& These bene'its mi$ht incl#(e pers"nnel re(#cti"ns, a
(ecrease in the c"st "' ;T, better invent"ry c"ntr"l an( an impr"vement in "r(er an( cash
mana$ement&
The in(epen(ent variables in this st#(y are "#tline( bel"w& ER implementati"ns re7#ire
that 0ey pe"ple thr"#$h"#t the "r$anizati"n create a clear, c"mpellin$ visi"n "' h"w the
c"mpany sh"#l( "perate in "r(er t" satis'y c#st"mers, emp"wer empl"yees an( 'acilitate
s#ppliers '"r the ne3t three t" 'ive years& S#ccess'#l implementati"ns re7#ire str"n$
lea(ership, c"mmitment, an( participati"n by t"p mana$ement& S#ccess'#l ER
implementati"n re7#ires that the "r$anizati"n en$a$e in e3cellent pr"+ect mana$ement&
;mplementin$ an ER system may '"rce the reen$ineerin$ "' 0ey b#siness pr"cesses
an(4"r (evel"pin$ new b#siness pr"cesses t" s#pp"rt the "r$anizati"ns2 $"als& )are'#l
selecti"n "' the pe"ple "n the implementati"n team is imp"rtant& 9ata acc#racy is
abs"l#tely re7#ire( '"r an ER system t" '#ncti"n pr"perly& E(#cati"n an( trainin$ is
pr"bably the m"st wi(ely rec"$nize( critical s#ccess 'act"r, beca#se #ser #n(erstan(in$
an( b#y1in is essential t" s#ccess& er'"rmance meas#res that assess the impact "' the
new system m#st be care'#lly c"nstr#cte(& The a#th"rs state that c"mpensati"n m#st be
tie( t" s#ccess'#l implementati"n& ?#lti1site iss#es s#ch as pr"(#ct an( pr"cess
c"nsistency an( site "r$anizati"nal c#lt#re are imp"rtant iss#es& -ne s#ch iss#e w"#l( be
the (i''erence between c"rp"rate stan(ar(izati"n vs& l"cal "ptimizati"n& An"ther is c#t1
"ver strate$y, bi$ ban$ with all sites implementin$ at the same time "r site by site
strate$y& An implementati"n strate$y that i(enti'ies the implementati"n steps t" be
'"ll"we( m#st 'it t" the s"'tware selecte( an( the c"rp"rate c#lt#re& *inally, the
imp"rtance "' the care'#l selecti"n "' the s"'tware pr"(#ct cann"t be #n(erestimate(&
Thr"#$h the analysis "' a s#ccess'#l implementati"n thr"#$h a case st#(y meth"("l"$y,
the a#th"rs (etermine the (e$ree t" which the s#b+ect instit#ti"n a(heres t" the critical
s#ccess 'act"rs, system selecti"n $#i(elines, an( implementati"n pr"ce(#res (escribe( in
the paper& The a#th"rs '"#n( varyin$ (e$rees "' a(herence t" the $#i(elines b#t
c"rrective acti"n was ta0en by the c"mpany at critical times an( the implementati"n was
c"nsi(ere( s#ccess'#l&
52

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