Effects of Organizational Decisions’ locus, Tasks Structures, Rules, IT Department’s Value, and Resource on ERP Success (original) (raw)
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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.
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...
Can Organizational Structure Influence ERP Success?
International Journal of Information Systems and Supply Chain Management, 2015
Implementing enterprise resource planning systems is a sophisticated, lengthy and costly process which tends to face serious failure. Though many contributing factors have been cited in the literature, the authors argue that the integrated nature of ERP systems, which generally requires an organization to adopt standardized business processes reflected in the software, is one of the key factors contributing to these failures. The integration and standardization imposed by most ERP systems may not be suitable for all types of organizational structures and it seems that some characteristics in organizational structures affect the likelihood of implementation success or failure. Based on the theory of organizational structure, this paper analyzes how the traditional variables which define a firm's organizational structure such as formalization, complexity, and centralization along with two variables of size and CIO position in an organization influence ERP projects success. The paper tests five hypotheses using a sample of 203 Iranian cases. The results show that all of the research variables on organizational structure exert a positive influence on ERP success which confirms all the research hypotheses.
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.
BLED 2009 Proceedings, 2009
This research report provides preliminary results in terms of ERP system selection criteria across five European Union countries based on empirical studies. The paper provides a structured list of decision making criteria considered in ERP decisions and contrasts weights as well as achievement levels across countries. Research was guided by the Delone & McLean Information Systems (D&M IS) success model supported with views on project and vendor related aspects needed to capture the whole scope of the decision problem. The main considered dimensions were: quality; net benefits; project costs and time; and a vendor dimension. Especially the considered dimensions from the D&M IS success model, namely quality and net benefits varied across countries in terms of their initial weighting and satisfaction levels achieved after ERP implementation. However, a common global notion seems to be that quality and project related criteria are more important to the decision maker than potential benefits on the organisational or individual level.
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Purpose-The purpose of this study is to examine how two organizational members, i.e. business and information technology (IT) managers evaluate the success measures of acquired enterprise resource planning (ERP) systems. Design/methodology/approach-Surveys were conducted in two Northern European countries-Finland and Estonia. Findings-Prior studies suggest that business and IT managers evaluate organizational-IT issues, including ERP success evaluations differently. However, this study's data analysis showed that no significant statistical differences exist between the two groups on the six dimensions of ERP success operationalized with the exception of one, i.e. vendor/consultant quality. In brief, both groups seem to have a similar view of ERP success in their respective organizations. Originality/value-Discusses the implications for practitioners and researchers.
Industry Variables Affecting ERP Success and Status
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This manuscript analyzes the views of top financial executives on the information systems (IS) in their organizations and to study the level of enterprise resource planning implementation success and well as current status of activity in ERP systems. Specifically, ERP success and status were studied in 2010 as well as the effect of company size, level of ownership, and industry. An analysis of secondary data obtained from the 2006 and 2010 Financial Executives International comprehensive survey-based research on technology issues for financial executives. The results of this study are further explored deeper in the article.
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Organisational culture and IT resources impacts on ERP system success: an empirical investigation
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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.