Hierarchical Examination of Success Factors across ERP Life-Cycle

This study investigates critical success factors (CSF) in implementing Enterprise Resource Planning (ERP) systems. It reviews 94 such factors discussed in journals, conference proceedings and books, published for the most part in the last decade, covering the full lifecycle of ERP systems. Questionnaires exploring these 94 factors were submitted to hundreds of respondents, divided into five groups. The authors of the study hypothesize that the 94 success factors can be grouped, in overall and in each phase of ERP life cycle, under several extracted construct emerged from a statistical extraction method accompanied by business logic coming up with a term that best describes the content domain of the attributes that weight highly on relevant construct. This study presents an examination process of validity, principal component, similarity, reliability and multicollinearity analyses for hierarchical formations of success factors for the entire ERP life cycle and for each one of the six ERP life cycle phases (planning, implementation, stabilization, backlog, new module and major upgrade). This research exhibits for each ERP life cycle phase the main sub factors that explain the main themes of ERP implementation for the most. Special attention is given to: (a) earlier research on CSFs for ERP implementations, (b) hierarchical formation of parent and sub-factors in overall and in each phase of ERP life cycle and (c) representative meanings of critical success factors needed to be considered and how they should be managed across the ERP life cycle.

[1]  Abdullah S. Al-Mudimigh,et al.  Enterprise resource planning: A taxonomy of critical factors , 2003, Eur. J. Oper. Res..

[2]  Walter Skok,et al.  Evaluating enterprise resource planning (ERP) systems using an interpretive approach , 2002 .

[3]  Ravi T. Seethamraju,et al.  Adoption of ERPs in a Medium-sized Enterprise- A case study , 2008 .

[4]  Edward W. N. Bernroider,et al.  Enterprise resource planning (ERP) diffusion and characteristics according to the system's lifecycle. A comparative view of small-to-medium sized and large enterprises. , 2005 .

[5]  Jen-Her Wu,et al.  Enterprise resource planning experience in Taiwan: an empirical study comparative analysis , 2003, 36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the.

[6]  Judy A. Siguaw,et al.  Formative versus Reflective Indicators in Organizational Measure Development: A Comparison and Empirical Illustration , 2006 .

[7]  Siriginidi Subba Rao.  Enterprise resource planning: business needs and technologies , 2000, Ind. Manag. Data Syst..

[8]  Gerald G. Grant,et al.  Strategic alignment and enterprise systems implementation: the case of Metalco , 2003, J. Inf. Technol..

[9]  Palaniswamy Rajagopal,et al.  An innovation-diffusion view of implementation of enterprise resource planning (ERP) systems and development of a research model , 2002 .

[10]  J. Nunnally.  Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[11]  Toni M. Somers,et al.  The impact of critical success factors across the stages of enterprise resource planning implementations , 2001, Proceedings of the 34th Annual Hawaii International Conference on System Sciences.

[12]  C. Stefanou.  Supply Chain Management (SCM) and Organizational Key Factors for Successful Implementation of Enterprise Resource Planning (ERP) Systems , 1999 .

[13]  Meg G. Murray,et al.  A Case Study Analysis of Factors for Success in ERP System Implementations , 2001 .

[14]  Joan Antoni Pastor,et al.  Organizational and Technological Critical Success Factors Behavior Along the ERP Implementation Phases , 2004, ICEIS.

[15]  Mike Chiasson,et al.  Taking Industry Seriously in Information Systems Research , 2005, MIS Q..

[16]  Fiona Fui-Hoon Nah,et al.  ERP Implementation: Chief Information Officers' Perceptions of Critical Success Factors , 2003, Int. J. Hum. Comput. Interact..

[17]  Detmar W. Straub,et al.  Specifying Formative Constructs in Information Systems Research , 2007, MIS Q..

[18]  Kwasi Amoako-Gyampah,et al.  ERP implementation factors: A comparison of managerial and end-user perspectives , 2004, Bus. Process. Manag. J..

[19]  Eric W. T. Ngai,et al.  Examining the critical success factors in the adoption of enterprise resource planning , 2008, Comput. Ind..

[20]  M. A. Rashid.  The Evolution of ERP Systems: A Historical Perspective , 2002 .

[21]  Fiona Fui-Hoon Nah,et al.  Critical factors for successful implementation of enterprise systems , 2001, Bus. Process. Manag. J..

[22]  José Esteves,et al.  Towards the Unification of Critical Success Factors for ERP implementations , 2000 .

[23]  Young B. Moon,et al.  Enterprise Resource Planning (ERP): a review of the literature , 2007 .

[24]  Graeme G. Shanks,et al.  Differences in Critical Success Factors in ERP Systems Implementation in Australia and China: A Cultural Analysis , 2000, ECIS.

[25]  Graeme G. Shanks,et al.  A taxonomy of ERP implementation approaches , 2000, Proceedings of the 33rd Annual Hawaii International Conference on System Sciences.

[26]  Leopoldo Colmenares,et al.  Un estudio exploratorio sobre los factores críticos de éxito en la implantación de sistemas de planeación de recursos empresariales (ERP) en Venezuela , 2005 .

[27]  C. Heckler.  A Step-by-Step Approach to Using the SAS™ System for Factor Analysis and Structural Equation Modeling , 1996 .

[28]  Munirpallam A. Venkataramanan,et al.  Enterprise resource planning: Managing the implementation process , 2003, Eur. J. Oper. Res..

[29]  Rolph E. Anderson,et al.  Nederlandse samenvatting en bewerking van 'Multivariate data analysis, 4th Edition, 1995' , 1998 .

[30]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[31]  She-I Chang,et al.  ERP life cycle implementation, management and support: implications for practice and research , 2004, 37th Annual Hawaii International Conference on System Sciences, 2004. Proceedings of the.

[32]  Piotr Soja,et al.  Success factors in ERP systems implementations: Lessons from practice , 2006, J. Enterp. Inf. Manag..

[33]  Donatella Sciuto,et al.  Factors affecting ERP system adoption: A comparative analysis between SMEs and large companies , 2005, J. Enterp. Inf. Manag..

[34]  Thompson S. H. Teo,et al.  IT Training as a Strategy for Business Productivity: A Framework for Small and Medium-Sized Enterprises in Asia , 2004, PACIS.

[35]  J. Hair.  Multivariate data analysis , 1972 .

[36]  Albert Y.T. Sun,et al.  Achievement assessment for enterprise resource planning (ERP) system implementations based on critical success factors (CSFs) , 2005 .

[37]  Vidyaranya B. Gargeya,et al.  Success and failure factors of adopting SAP in ERP system implementation , 2005, Bus. Process. Manag. J..

[38]  Rolph E. Anderson,et al.  Multivariate data analysis (4th ed.): with readings , 1995 .

[39]  Chris Sauer,et al.  European Conference on Information Systems ( ECIS ) 2002 An Examination of Barriers to Benefits Realization from Enterprise Systems in the Public Service , 2017 .

[40]  Rajagopal Palaniswamy,et al.  An innovation - diffusion view of implementation of enterprise resource planning (ERP) systems and development of a research model , 2002, Inf. Manag..

[41]  Zhenyu Huang,et al.  ERP implementation issues in advanced and developing countries , 2001, Bus. Process. Manag. J..

[42]  David Brown,et al.  The Adoption of ERP Applications in China , 2005, AMCIS.

[43]  K. Punch.  Survey Research: The Basics , 2003 .

[44]  She-I Chang,et al.  A Delphi Examination of Public Sector ERP Lifecycle Implementation, Management and Support Issues , 2001, J. Decis. Syst..

[45]  R. Nagarajan,et al.  Enterprise Integration , 1999 .

[46]  Abdullah S. Al-Mudimigh,et al.  ERP software implementation: an integrative framework , 2001, Eur. J. Inf. Syst..