Influences of Organizational Objectives, Culture, and IT Support/Knowledge on ERP System Effectiveness: An Empirical Investigation (original) (raw)

Enterprise resource planning (ERP) systems have emerged as an increasingly important tool for business organizations. Despite their popularity among practitioners, industry reports and academic research have continually indicated that adopting firms sometimes do not obtain anticipated benefits or effectiveness from such applications. Admittedly, the antecedents of ERP system effectiveness are comprehensive and diverse; however, studies examining the influences of organizational objectives, culture, and information technology (IT) support/knowledge on ERP system effectiveness are not readily available in the extant literature. We hope to contribute to the literature by focusing on the foregoing contingent factors, which prior studies suggested positively affect the effectiveness of IT systems. Using relevant theoretical frameworks, we developed eight (8) hypotheses, which were tested with cross-sectional data collected from firms in two European countries. Our results confirmed that external support/knowledge and organizational objectives positively influence ERP system effectiveness in adopting firms. The mediating effects of firm size and IT function's value were also underscored. Our findings have benefits for both practice and research.

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

International Journal of Business and Systems Research, 2010

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

An Examination of Information Technology Assets and Resources as Antecedent Factors tO ERP System Success

Organizations adopt enterprise resource planning (ERP) systems to improve information exchange across the enterprise. Research continues to show that adopting organizations do not achieve the intended objectives with the acquisition of such packages. Studies are needed to understand factorscontingent or otherwisethat may help increase knowledge in the area. This study was designed to contribute to that discourse. We examined the effects of select few information technology (IT) assets and resources, i.e. IT budgets, organizational actors' IT skills/knowledge, IT function's value, external expertise, and so forth, on ERP success. While such antecedent factors matter in the discourse, research combining them in order to assess their effects on ERP success is rare. Using a crosssectional field survey, we collected data from 165 firms in three Nordic countries. Data analysis was performed using the partial least squares (PLS) technique. Statistical support was found for nine (9) out of the fifteen (15) hypotheses formulated. External expertise and organizational IT skills/knowledge were found to have significant, positive effects on ERP success, as did satisfaction with legacy systems, a result that contradicts conventional wisdom in the area. Our data did not indicate that IT function's value, IT department size and budgets have significant effects on ERP success.

An Examination of Information Technology Assets and Resources as Antecedent Factors to ERP Sysytem Success

2014

Organizations adopt enterprise resource planning (ERP) systems to improve information exchange across the enterprise. Research continues to show that adopting organizations do not achieve the intended objectives with the acquisition of such packages. Studies are needed to understand factors – contingent or otherwise – that may help increase knowledge in the area. This study was designed to contribute to that discourse. We examined the effects of select few information technology (IT) assets and resources, i.e. IT budgets, organizational actors’ IT skills/knowledge, IT function’s value, external expertise, and so forth, on ERP success. While such antecedent factors matter in the discourse, research combining them in order to assess their effects on ERP success is rare. Using a crosssectional field survey, we collected data from 165 firms in three Nordic countries. Data analysis was performed using the partial least squares (PLS) technique. Statistical support was found for nine (9) o...

Effects of Organizational Decisions’ locus, Tasks Structures, Rules, IT Department’s Value, and Resource on ERP Success

This study investigated the effects of organizational decisions' locus, tasks structure, rules, information technology (IT) budget, and IT department's value perceptions on enterprise resource planning (ERP) system success. Although such contingent factors matter in the discourse, research on their effects is rare. To increase insight in the area, a research model was proposed and relevant hypotheses that included the aforementioned factors were developed. Data was collected in a cross-sectional field survey of 109 firms in two European countries. The partial least squares (PLS) technique was used for data analysis. Statistical support was found for nine (9) out of the thirteen (13) hypotheses. Many of the organizational design constructs and organizational IT budget have effects on ERP success whereas the perceptions of IT department's value did not. The research's contribution and practical implications are discussed

Effect of Organizational Culture and Top Management Support on Erp Implementation

The sole purpose of this research is to study the relationship and impact of different factors on ERP implementation. Although there are many critical factors influencing in the process of successful ERP implementation. But in this research top management support and organizational culture are studied as influencing factors with ERP implementation. Data has been collected from Sialkot for testing the hypothesis. Regression analysis is used to study the impact of organizational culture and top management support on ERP implementation. Results suggest that there is sufficient & significant impact as well as positive relationship of independent variables (individually as well as collectively) with dependent variables. This proves to be a pioneer study in this area of research in Pakistan. The results may help the top managers to consider the factors identified in the research before implementing ERP projects in order to save financial as well as human resources. Keywords: ERP, Organiza...

The Influence of Enterprise Resource Planning (ERP) Implementation System on Company Performance Mediated by Organizational Capabilities

2021

Research aims : This study aims to examine the effect of Enterprise Resource Planning (ERP) system implementation on company performance with organizational capabilities as a mediating variable. Design/Methodology/Approach : This research is a quantitative study using 117 samples of manufacturing companies listed on the IDX from 2013 to 2018. Analysis and testing in this study employed SEM-PLS to test the effect of Enterprise Resource Planning (ERP) system implementation on company performance with organizational capabilities as a mediating variable. Research findings : The results showed that the ERP system's implementation had a significant positive effect on company performance and organizational capabilities. Organizational capabilities also had a significant positive effect on company performance. Besides, it was found that organizational capabilities mediated the relationship between ERP system implementation and company performance. Theoretical contribution/Originality : ...

The influence of organizational factors on successful ERP implementation

2011

Purpose-This study aims to examine organizational factors (i.e. top management support, training and education, enterprise-wide communication) that may influence the enterprise resource planning system implementation success in Iran. Design/methodology/approach-Empirical data were collected via a survey questionnaire. The questionnaires were distributed to selected managers of companies adopting ERP systems in Iran. Findings-The results indicate that the companies' top management must provide full support and commitment to the project if the system is to be successful. In addition, management must also ensure the plans are communicated and understood by the entire company. Finally it is also illustrated that adequate training and education pertaining to the systems must be given to all users to ensure that they are able to use the system effectively and efficiently thus contributing to their satisfaction which will subsequently influence the implementation success. Research limitations/implications-The ERP implementation success dimensions were measured using subjective and perceptual measures. This was due to the difficulty in securing the related factual data from the participating organizations. Practical implications-The findings may help companies planning to implement an ERP system to strategise their efforts and process to ensure successful implementation. Originality/value-This study examines how organizational factors, namely top management support, training and education as well as enterprise wide communication among ERP users, affect ERP implementation success in Iran.

An investigation of the impacts of some external contextual factors on ERP systems success assessment: a case of firms in Baltic-Nordic region

International Journal of Internet and Enterprise Management, 2006

Enterprise Resource Planning (ERP) systems are among the largest information systems (IS) investments made by firms, and the use of such systems is spreading globally. Many researchers have discussed their adoption and implementation, few have investigated the impact of external contextual factors on the success of such technologies in adopting firms. This study aims to fill this gap in research by examining the effects of three external contextual factors, i.e., industry type, industry climate, and national economic climate on ERP success assessment. We obtained data from Estonia and Finland and our analysis shows that industry and national economic climates have significant relationships with ERP success.

Association for Information Systems AIS Electronic Library (AISeL) THE IMPACT OF ORGANISATIONAL CULTURE ON ERP SYSTEMS IMPLEMENTATION: LESSONS FROM JORDAN Recommended Citation

Jordan is adopting Enterprise Resource Planning (ERP) systems in both its public and private sectors. Jordan's emerging private sector has historically close ties to the public sector; though a global market orientation requires a shift in its organisational culture. ERPs however embed business processes which do not necessarily fit with traditional cultural practices, and implementation success is not assured. This study looks at the perceptions of both public and private sector ERP implementations in Jordan and assesses these on various measures of success. There were few differences between public and private sectors, but the benefits actually realized in Jordanian ERPs fell short of claims made for the technology in other cultures.

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