Prioritization of enterprise resource planning (ERP) systems success measures: viewpoints of two organizational stakeholder groups

Business organizations worldwide are adopting Enterprise Resource Planning (ERP) systems. A number of studies deliberate the adoption and implementation of ERP, but few investigate the success of the system. To our knowledge, this is the first study of its kind to investigate the perspectives of key organizational stakeholders with respect to the success of their ERP software. Using postal surveys in Finland and Estonia, two small Northern European countries, we obtained empirical data from 44 private organizations in diverse industries. Our objective was to determine whether differences exist between two organizational stakeholder groups (top- and mid-level managers) concerning their prioritization and evaluation of measures relating to the success of their ERP software. Despite their distinct roles and influence, we did not notice any significant statistical differences between the two groups in this regard. However, each group evaluated measures such as "accuracy" and "reliability" differently. This paper discusses the implications of the study for both practice and research.

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

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

[3]  M. Lynne Markus,et al.  Multisite ERP Implementations. , 2000 .

[4]  E. Brynjolfsson,et al.  Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending , 1996 .

[5]  M. Lynne Markus,et al.  Enterprise resource planning: multisite ERP implementations , 2000, CACM.

[6]  Frédéric Adam,et al.  Benefit realisation through ERP: the re-emergence of data warehousing , 2003 .

[7]  李幼升,et al.  Ph , 1989 .

[8]  Gary W. Dickson,et al.  Assessment of the Information Systems Organization: an Empirical Investigation of assessor Perspectives , 1987, ICIS.

[9]  William R. King,et al.  Antecedents of Knowledge Transfer from Consultants to Clients in Enterprise System Implementations , 2005, MIS Q..

[10]  James C. Wetherbe,et al.  Key issues in information systems management , 1987 .

[11]  William J. Doll,et al.  The Measurement of End-User Computing Satisfaction , 1988, MIS Q..

[12]  E. Schein.  The role of the CEO in the management of change : the case of information technology , 1975 .

[13]  Campbell Fraser,et al.  Investigating the effectiveness of managers through an analysis of stakeholder perceptions , 2003 .

[14]  Suzanne D. Pawlowski,et al.  What is Applications Integration? Understanding the Perspectives of Managers, IT Professionals, and End Users , 2003, AMCIS.

[15]  Robert L. Dipboye,et al.  Perceptions of Organizational Politics: An Investigation of Antecedents and Consequences , 1995 .

[16]  M. Markus,et al.  The Enterprise System Experience— From Adoption to Success , 2000 .

[17]  Marja Nissinen,et al.  The Baltics as a business location for information technology and electronics industries , 2002 .

[18]  Tony Moynihan,et al.  What Chief Executives and Senior Managers Want From Their IT Departments , 1990, MIS Q..

[19]  Leon A. Kappelman,et al.  A Comprehensive Model for Assessing the Quality and Productivity of the Information Systems Function: Toward a Theory for Information Systems Assessment , 1997 .

[20]  R. Anthony,et al.  Planning and Control Systems: A Framework for Analysis , 1965 .

[21]  Jos van Hillegersberg,et al.  Enterprise resource planning: ERP adoption by European midsize companies , 2000, CACM.

[22]  A. Gupta,et al.  A stakeholder analysis approach for interorganizational systems , 1995 .

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

[24]  Magid Igbaria,et al.  End-user computing effectiveness: A structural equation model , 1990 .

[25]  Margi Levy,et al.  Developing a 3-D model of information systems success , 1998 .

[26]  Princely Ifinedo.  Enterprise Resource Planning (ERP) Systems Success Measurement: An Extended Model , 2006, ICEIS.

[27]  R. Freeman.  Strategic Management: A Stakeholder Approach , 2010 .

[28]  T. Davenport.  Saving IT's Soul: Human-Centered Information Management. , 1994 .

[29]  Ephraim R. McLean,et al.  Information Systems Success: The Quest for the Independent Variables , 1992, J. Manag. Inf. Syst..

[30]  Peter G. W. Keen,et al.  Mis Research: Reference disciplines and a Cumulative Tradition , 1980, ICIS.

[31]  Albert L. Lederer,et al.  Convincing Top Management of the Strategic Potential of Information Systems , 1988, MIS Q..

[32]  Petri Hallikainen,et al.  Reasons for ERP Acquisition , 2004, ICEIS.

[33]  Joan Antoni Pastor,et al.  Enterprise Resource Planning Systems Research: An Annotated Bibliography , 2001, Commun. Assoc. Inf. Syst..

[34]  J. Pfeffer,et al.  The Power and the Glory@@@Managing with Power: Politics and Influence in Organizations. , 1992 .

[35]  T. Davenport.  Putting the enterprise into the enterprise system. , 1998, Harvard business review.

[36]  Fred J. Heemstra,et al.  Senior executives' use of information technology , 2001, Inf. Softw. Technol..

[37]  Toni M. Somers,et al.  Exploring ERP Success from an End-User Perspective , 2001 .

[38]  D. Rousseau.  Characteristics of Departments, Positions, and Individuals: Contexts for Attitudes and Behavior. , 1978 .

[39]  Albert H. Segars,et al.  Information systems effectiveness: The construct space and patters of application , 1996, Inf. Manag..

[40]  Jos van Hillegersberg,et al.  ERP Adoption by European Midsize Companies. , 2000 .

[41]  G. Hofstede.  Culture′s Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations , 2001 .

[42]  A. Pouloudi,et al.  Stakeholder identification in inter-organizational systems: gaining insights for drug use management systems , 1997 .

[43]  Peter B. Seddon,et al.  Assessing and managing the benefits of enterprise systems: the business manager's perspective , 2002, Inf. Syst. J..

[44]  Sue Abdinnour-Helm,et al.  Pre-implementation attitudes and organizational readiness for implementing an Enterprise Resource Planning system , 2003, Eur. J. Oper. Res..

[45]  Princely Ifinedo,et al.  Do Organisational-Technological Contingency Factors Influence the Perception of ERP Systems Success ? : An Exploratory Study in the Baltic-Nordic Region of Europe , 2005 .

[46]  Darshana Sedera,et al.  Knowledge Management for ERP success , 2003, PACIS.

[47]  Shan Ling Pan,et al.  ERP SUCCESS: THE SEARCH FOR A COMPREHENSIVE FRAMEWORK , 2002 .

[48]  Darshana Sedera,et al.  Measuring Enterprise Systems Success: A Preliminary Model , 2003, AMCIS.

[49]  Peter B. Seddon.  A Respecification and Extension of the DeLone and McLean Model of IS Success , 1997, Inf. Syst. Res..

[50]  R. Sitgreaves.  Psychometric theory (2nd ed.). , 1979 .

[51]  J. Weiss,et al.  Reflections on value: policy makers evaluate federal information systems , 1986 .

[52]  K. Cameron.  Effectiveness as Paradox: Consensus and Conflict in Conceptions of Organizational Effectiveness , 1986 .

[53]  Thompson S. H. Teo,et al.  Critical success factors in the alignment of IS plans with business plans , 1999 .

[54]  Toni M. Somers,et al.  A taxonomy of players and activities across the ERP project life cycle , 2004, Inf. Manag..

[55]  Diane M. Strong,et al.  ERP Systems and the Paradox of Control , 2003, AMCIS.

[56]  David Targett,et al.  Patterns of senior executives' personal use of computers , 1999, Inf. Manag..

[57]  Petri Hallikainen,et al.  ERP System Adoption - Does the Size Matter? , 2005, Proceedings of the 38th Annual Hawaii International Conference on System Sciences.