Impact of Environmental Uncertainty and Organizational (original) (raw)
Related papers
Impact of Environmental Uncertainty and Organizational Context on ERP Overall Benefits
Pacific Asia Journal of the Association For Information Systems, 2009
Today, ERP is used to help most of firms processing volumes of information under more uncertainty and more competitive environments. This study aims to investigate how ERP performance is affected under the environmental uncertainty. Using organizational information processing theory (OIPT), we propose that environmental uncertainty affects organizational context, which in turn influence ERP overall benefits. A subunit (such as manufacturing plant or different functional department) level survey is used to collect data. The partial least squares technique indicates that environmental uncertainty has a positive impact on organizational context. Organizational context has a direct and mediating impact on ERP overall benefits. The paper concludes with discussions and Implications for both researchers and practitioners.
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
Effects Of Environmental Uncertainty On Perception Of Information Systems Issues
2011
Abstract The current study reports the results of a survey of CEOs and senior information systems managers to examine the relationship between perceived environmental uncertainty (PEU) and IS issues that have appeared repeatedly in MIS Quarterly. Senior Information Systems managers in high-PEU firms ranked a number of issues differently than those in low-PEU firms. Additionally, information systems issues overall are more important on average in high-PEU firms than in low-PEU firms.
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.
Effect of ERP Implementation on Organisational Performance: Manager's Dilemma
International Journal of Technology: IJ Tech, 2022
Enterprise Resource Planning (ERP) improves commercial activity control and provides a competitive advantage when combined with existing benefits. However, end-users oppose ERP implementation because it disrupts the status quo. In addition, ensuring that all operational units use the same ERP system is not an easy task. Therefore, a lack of adaptability is the cause of ERP failure. This study used a qualitative case study approach to analyze an event and understood the ERP system and natural phenomena. The data was collected using a semi-structured interview. The researcher reached data saturation at the 15 th respondent's feedback. Documentary data were examined for patterns and themes prior to triangulation. The result of this study shows that enduser support is critical to a system's daily operation and implementation, especially when it is new. Only a system that has been effectively designed, delivered, and trained may be used by end users. Implementing ERP enhances an organization's capacity and performance. Post-implementation evaluation is needed to determine the organization's potential and the system's value. Except for financial performance, the organization's overall performance has improved across all Balance Score Card (BSC) perspectives of internal processes, customers, learning, and growth. Adopting new technologies is expected to enhance the organization's overall efficiency. Each identified thematic area affects an organization's ability to use its ERP system effectively and efficiently to achieve previously identified benefits. In addition, the study found that STP organizations focus on the benefits of implementing ERP rather than the associated costs. Finally, organizations can better plan for the future benefits of replacing or updating ERP systems.
ERP Systems and Managerial Decision Making - A Model for Analysis
2008
Implementing Enterprise Resource Planning (ERP) systems, the most significant IT development in recent times, affects all aspects of organizational life. While the positive impact of ERP systems on operational efficiencies is well established in the literature, the relationship between ERP systems, decision support capability and decision-making processes has been inadequately investigated in the past. This paper hypothesizes a research model for further investigation. Using standardization and integration, the two key characteristics of ERP systems, the influence of ERP-enabled information environment is explained in terms of its impact on the accessibility/availability, quality and quantity of information. The extent of integration and standardization achieved while implementing the ERP system and organizational culture and size are moderating variables that are expected to moderate the influence of ERP-enabled environment on managerial decision making. Extending recent studies, t...
Interdisciplinary Journal of Information, Knowledge, and Management, 2018
Aim/Purpose This explanatory study aimed to determine the mediating role of ERP in the relation between the effect of a socio-technical approach and decisionmaking environment, and firms’ sustainable performance. Background Although earlier studies have discussed the critical success factors of the failure or success of an ERP system and the extent to which it achieves its desired objectives, the current study focused on the significant impact of socio-technical elements and decision-making environment on the success of the ERP system (i.e., sustainable performance). In addition, the lack of research on ERP as a mediator in the above relationship motivated this study to bridge the literature gap. Methodology The data was collected using questionnaires distributed to 233 randomly selected employees of three multinational companies (BP, LUKOIL, and Eni) operating in Iraq. The structural equation modeling was employed to test the hypothesized relationships. Contribution The study contributes to the literature by examining the mediating role of the ERP system in the relationship between socio-technical elements and the decision-making environment, as well as, the moderating role of organizational culture in the relationship between socio-technical elements and ERP systems. Findings The results showed that ERP is a significant mediator between the linkage of socio-technical elements and the decision-making environment while organizational culture has an insignificant moderating role in the relationship between socio-technical elements and ERP systems. Recommendations for Practitioners In a developing country like Iraq, there is a need to implement ERP to achieve better sustainable performance through change management and organizational development that ultimately work towards enhancing individual capabilities, knowledge, and training. Recommendations for Researchers The researchers are recommended to conduct an in-depth study of the phenomenon based on theoretical and empirical grounds, particularly in light of the relationship of socio-technical elements and decision-making environments. Impact on Society This study provides a reference for organizations with similar cultural backgrounds in using ERP systems to minimize pollution in Iraqi context. Future Research A more in-depth study can be performed using a bigger sample, which not only includes the oil industry but also the other industries. Keywords organizational culture; socio-technical approach; decision-making environment; ERP system; sustainable performance.
Using the Technological-Organizational-Environmental Framework to Evaluate ERP System Success
Software products and information technology (IT) systems that are being developed in or sourced from foreign countries are becoming popular among business organisations for various reasons including cost advantage and reliability. The trend of sourcing or developing software products using foreign parties does present its challenges. In this paper, we shall identity and discuss the challenges facing organisations with a desire to exploit the option of sourcing or developing software products in multi-site and multi-cultural environments. To that end, a conceptual framework is proposed to guide the discourse. The research community benefits from comprehensive literature on the issue, and practitioners may apply some of the suggestions mooted herein.
Assessing the Value Provided by ERP Applications Through Organizational Activities
Communications of the Association for Information Systems
When managers and stockholders consider making an investment in information technology (IT), as with any other investment, a major concern is whether this investment will add to the performance of their organization. However, it is difficult to identify the nature of the linkage between an investment in IT in general, and Enterprise Resource Planning (ERP), in particular, to an organization's performance. In this study we extend the work of Barua et al., Lerch and Mangal, and Tallon et al. We develop a model to identify the value ERP applications add to Porter's organizational primary activities and the information systems (IS) applications related to ERP that help deliver added value through organizational characteristics. This new model should help in assessing the potential value of an ERP investment.
European Journal of Information Systems, 2006
This study explores the factors that can impact individual performance when using enterprise resource planning (ERP) systems. Starting from the proposition that organizational performance depends on individuals' task accomplishments, we test a structural model of task-technology fit, ERP user satisfaction, and individual performance in ERP environments. This research utilizes a survey method to examine the perceptions of ERP users. We performed factor and reliability analyses to assess the validity of the survey instrument. Six factors were identified as having an impact on individual performance: System Quality, Documentation, Ease of use, Reliability, Authorization, and Utilization. To explore the relationships among these factors, we conducted regression and multivariate adaptive regression splines analysis, and compared the findings from these two analytical techniques. The study provides evidence that System Quality, Utilization, and Ease of Use are the most important factors bearing on individual performance in ERP environments. Our findings also provide IT managers and researchers with knowledge of how these factors can be manipulated to improve individual performance when using ERP systems.