IDEAS home Printed from https://ideas.repec.org/a/vrs/poicbe/v13y2019i1p298-312n27.html
   My bibliography  Save this article

Study on the Factors that Determine the Success of ERP Implementation

Author

Listed:
  • Hajj Wissam EL

    (The Bucharest University of Economic Studies, Bucharest, Romania)

  • serhan Ali

    (The Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

The world boundaries are broken with the advancement of technology and the emergence of digitized industries where economies are connected via the cloud. As a result, effective management of information internally and externally is needed to cope with the quick changes in markets. For a long time, Enterprise Resource Planning (ERP) systems have been used to streamline company processes data, and hierarchy. ERP’s are capable of managing big data, integrating business processes and providing effective communication channels within the entire organization. ERP’s provide many benefits to businesses if implemented right. However, an alarming 70% of ERP implementations fail. The failure can very well bankrupt the organization and at the same time affect the vendors very negatively. The aim of this paper is to discuss the critical success factors in ERP implementations from the employees, management, consultants and vendors perspectives. Prior research has identified critical success factors for ERP implementations but none classified them according to the above perspectives (employees, management, consultants and vendors). Surveys were conducted with 60 ERP project participants including senior managers, employees and vendors. A regression analysis was made to investigate the relation between the success of ERP implementations (dependent variable) and the contributions of employees, management, consultants and vendors (independent variables). The study shows that there exists a positive relation between successful ERP implementation and the following: management support, employees’ motivation, training, management, vision, and professional consultants. Add to that, the study aids managers and ERP participants to identify the major success factors that must be implemented for the objective of having successful ERP deployment.

Suggested Citation

  • Hajj Wissam EL & serhan Ali, 2019. "Study on the Factors that Determine the Success of ERP Implementation," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 298-312, May.
    • Handle: RePEc:vrs:poicbe:v:13:y:2019:i:1:p:298-312:n:27
    DOI: 10.2478/picbe-2019-0027
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/picbe-2019-0027
    Download Restriction: no
    File URL: https://libkey.io/10.2478/picbe-2019-0027?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Abolfazl Kazemi & Seyed Reza Saeidi & Mahdi Azizmohammadi, 2014. "Selecting an ERP system using multi-criteria decision making method: a goal programming and fuzzy approach," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 16(1), pages 55-71.
    2. Asmamaw A. Mengistie & Dennis P. Heaton & Maxwell Rainforth, 2013. "Analysis of the Critical Success Factors for ERP Systems Implementation in U.S. Federal Offices," Lecture Notes in Information Systems and Organization, in: Felix Piazolo & Michael Felderer (ed.), Innovation and Future of Enterprise Information Systems, edition 127, pages 183-198, Springer.
    3. Valentin Dumitru & Vasile Florescu, 2009. "Enterpise resource planning deplozment guide," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 11(25), pages 213-222, February.
    4. Shahin Dezdar, 2012. "Strategic and tactical factors for successful ERP projects: insights from an Asian country," Management Research Review, Emerald Group Publishing Limited, vol. 35(11), pages 1070-1087, September.
    5. Al-Mashari, Majed & Al-Mudimigh, Abdullah & Zairi, Mohamed, 2003. "Enterprise resource planning: A taxonomy of critical factors," European Journal of Operational Research, Elsevier, vol. 146(2), pages 352-364, April.
    6. Archana Sar & Poonam Garg, 2012. "Analysis of critical failure factors in ERP implementation: an Indian experience," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 11(3), pages 360-378.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdesamad Zouine & Pierre Fenies, 2014. "The Critical Success Factors Of The ERP System Project: A Meta-Analysis Methodology," Post-Print hal-01419785, HAL.
    2. Aloini, Davide & Dulmin, Riccardo & Mininno, Valeria, 2012. "Modelling and assessing ERP project risks: A Petri Net approach," European Journal of Operational Research, Elsevier, vol. 220(2), pages 484-495.
    3. Hasan AL JAFA, 2020. "A Case Study For The Crm Software Selection Process In A Transportation Company Using An Integrated Ahp And Qfd Approach," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 24, pages 337-351, December.
    4. Møller, Charles & Kræmmergaard, Pernille & Rikhardsson, Pall, 2006. "The Emergence of Enterprise Systems Management - A Challenge to the IS Curriculum," Informatics Research Group Working Papers I-2005-03, University of Aarhus, Aarhus School of Business, Department of Business Studies.
    5. Malgorzata Plaza, 2008. "Team performance and information system implementation," Information Systems Frontiers, Springer, vol. 10(3), pages 347-359, July.
    6. Chen, Liang-Tu, 2014. "Optimal dynamic policies for integrated production and marketing planning in business-to-business marketplaces," International Journal of Production Economics, Elsevier, vol. 153(C), pages 46-53.
    7. Nicholas Berente & Kalle Lyytinen & Youngjin Yoo & John Leslie King, 2016. "Routines as Shock Absorbers During Organizational Transformation: Integration, Control, and NASA’s Enterprise Information System," Organization Science, INFORMS, vol. 27(3), pages 551-572, June.
    8. Hüseyin Taştan & Feride Gönel, 2020. "ICT labor, software usage, and productivity: firm-level evidence from Turkey," Journal of Productivity Analysis, Springer, vol. 53(2), pages 265-285, April.
    9. Chien, Shih-Wen & Hu, Changya & Reimers, Kai & Lin, Jeun-Sheng, 2007. "The influence of centrifugal and centripetal forces on ERP project success in small and medium-sized enterprises in China and Taiwan," International Journal of Production Economics, Elsevier, vol. 107(2), pages 380-396, June.
    10. Li, Ling & Markowski, Carol & Xu, Li & Markowski, Edward, 2008. "TQM--A predecessor of ERP implementation," International Journal of Production Economics, Elsevier, vol. 115(2), pages 569-580, October.
    11. Alin Marius Andrieș & Iulia Ungureanu, 2022. "ERP and Performance of Companies in Romania," JRFM, MDPI, vol. 15(10), pages 1-12, September.
    12. Yeh, Chung-Hsing & Xu, Yan, 2013. "Managing critical success strategies for an enterprise resource planning project," European Journal of Operational Research, Elsevier, vol. 230(3), pages 604-614.
    13. Valentin Florentin Dumitru & Nadia Albu & Cătălin Nicolae Albu & Mădălina Dumitru, 2013. "ERP implementation and organizational performance. A Romanian case study of best practices," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(34), pages 518-531, June.
    14. Sreekumar A. Menon & Marc Muchnick & Clifford Butler & Tony Pizur, 2021. "Critical Challenges in Enterprise Resource Planning (ERP) Implementation," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(7), pages 1-54, July.
    15. Plaza, Malgorzata, 2016. "Balancing the costs of human resources on an ERP project," Omega, Elsevier, vol. 59(PB), pages 171-183.
    16. Tatijana Minic & Bratislav Petrovic & Oliver Ilic, 2013. "A new approach to integral information system of a company for business and sustainable development," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(Special 7), pages 769-783, November.
    17. Supapich Wongchotewiriyakit & Vichita Ractham, 2018. "ERP Critical Success Factors-Roles and Impact on Promoting Cross Functional Integration," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 4(4), pages 146-159.
    18. Wenjuan Xu & Peiyu Ou & Weiguo Fan, 2017. "Antecedents of ERP assimilation and its impact on ERP value: A TOE-based model and empirical test," Information Systems Frontiers, Springer, vol. 19(1), pages 13-30, February.
    19. Zafer Konakli, 2014. "The Evaluation of the Criteria of ERP Selection for Bosnian Companies," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 3(4), pages 210-219.
    20. Nityesh Bhatt & Sunita Guru & Shashank Thanki & Gunjan Sood, 2021. "Analysing the factors affecting the selection of ERP package: a fuzzy AHP approach," Information Systems and e-Business Management, Springer, vol. 19(2), pages 641-682, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:poicbe:v:13:y:2019:i:1:p:298-312:n:27. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.