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Implications of the fit between organizational structure and ERP: A structural contingency theory perspective

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  • Morton, Neil A.
  • Hu, Qing

Abstract

Despite the tremendous popularity and great potential, the field of Enterprise Resource Planning (ERP) adoption and implementation is littered with remarkable failures. Though many contributing factors have been cited in the literature, we argue that the integrated nature of ERP systems, which generally requires an organization to adopt standardized business processes reflected in the design of the software, is a key factor contributing to these failures. We submit that the integration and standardization imposed by most ERP systems may not be suitable for all types of organizations and thus the “fit” between the characteristics of the adopting organization and the standardized business process designs embedded in the adopted ERP system affects the likelihood of implementation success or failure. In this paper, we use the structural contingency theory to identify a set of dimensions of organizational structure and ERP system characteristics that can be used to gauge the degree of fit, thus providing some insights into successful ERP implementations. Propositions are developed based on analyses regarding the success of ERP implementations in different types of organizations. These propositions also provide directions for future research that might lead to prescriptive guidelines for managers of organizations contemplating implementing ERP systems.

Suggested Citation

  • Morton, Neil A. & Hu, Qing, 2008. "Implications of the fit between organizational structure and ERP: A structural contingency theory perspective," International Journal of Information Management, Elsevier, vol. 28(5), pages 391-402.
    • Handle: RePEc:eee:ininma:v:28:y:2008:i:5:p:391-402
    DOI: 10.1016/j.ijinfomgt.2008.01.008
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    Cited by:

    1. Goldsby, Curtis M. & Hanisch, Marvin, 2023. "Agency in the algorithmic age: The mechanisms and structures of blockchain-based organizing," Journal of Business Research, Elsevier, vol. 168(C).
    2. Mero, Joel & Leinonen, Miira & Makkonen, Hannu & Karjaluoto, Heikki, 2022. "Agile logic for SaaS implementation: Capitalizing on marketing automation software in a start-up," Journal of Business Research, Elsevier, vol. 145(C), pages 583-594.
    3. Parast, Mahour M., 2022. "Toward a contingency perspective of organizational and supply chain resilience," International Journal of Production Economics, Elsevier, vol. 250(C).
    4. Trkman, Peter, 2010. "The critical success factors of business process management," International Journal of Information Management, Elsevier, vol. 30(2), pages 125-134.
    5. Tiwari, Sunil & Sharma, Pankaj & Jha, Ashish Kumar, 2024. "Digitalization & Covid-19: An institutional-contingency theoretic analysis of supply chain digitalization," International Journal of Production Economics, Elsevier, vol. 267(C).
    6. Fatima Riyaz KHATEEB & Talia NABI, 2023. "GREEN HUMAN RESOURCE MANAGEMENT: A REVIEW OF TWO DECADES OF RESEARCh," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 15(2), pages 43-64, June.
    7. Brocke, Jan vom & Zelt, Sarah & Schmiedel, Theresa, 2016. "On the role of context in business process management," International Journal of Information Management, Elsevier, vol. 36(3), pages 486-495.
    8. Gleim, Mark R. & McCullough, Heath & Sreen, Naman & Pant, Logan G., 2023. "Is doing right all that matters in sustainability marketing? The role of fit in sustainable marketing strategies," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    9. Zhu, Yan & Li, Yan & Wang, Weiquan & Chen, Jian, 2010. "What leads to post-implementation success of ERP? An empirical study of the Chinese retail industry," International Journal of Information Management, Elsevier, vol. 30(3), pages 265-276.

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