Nothing Special   »   [go: up one dir, main page]

Skip to main content

Examining the Critical Success Factors for ERP Implementation: An Explanatory Study Conducted in SMEs

  • Conference paper
  • First Online:
Information Technology for Management: New Ideas and Real Solutions (ISM 2016, AITM 2016)

Abstract

The contemporary business environment is characterized by intense global competition, emphasis on the use of technology and need for integrating business processes. In that context, organizations are urged to reduce their costs, increase their productivity and improve customer satisfaction. Enterprise Resource Planning (ERP) systems represent state-of-the-art information technologies that are able to integrate business processes within and beyond organizational boundaries and facilitate the flow of information across all functions. Despite that, ERP implementation projects are complicated, costly and include high failure risks. Moreover, Small and Medium Enterprises (SMEs) rarely possess the appropriate resources and expertise in order to successfully implement ERP systems. The present study aims (a) to develop and (b) empirically test a conceptual framework that investigates the factors affecting ERP system effective implementation in SMEs. The examination of the conceptual framework was made with the use of a newly-developed structured questionnaire that was distributed to a group of Greek SMEs. The reliability and the validity of the questionnaires were thoroughly examined, while research hypotheses were tested using the “Structural Equation Modeling” (SEM) technique. Results offer interesting empirical observations and managerial implications.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save

Springer+ Basic
$34.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. Fadlalla, A., Amani, F.: A keyword-based organizing framework for ERP intellectual contributions. J. Enterp. Inf. Manag. 28(5), 637–657 (2015). doi:10.1108/JEIM-09-2014-0090

    Article  Google Scholar 

  2. Pawełoszek, I.: Data mining approach to assessment of the ERP system from the vendor’s perspective. In: Ziemba, E. (ed.) FedCSIS 2015. LNBIP, vol. 243, pp. 125–143. Springer, Heidelberg (2016). doi:10.1007/978-3-319-30528-8_8

    Chapter  Google Scholar 

  3. Leyh, C.: Critical success factors for ERP projects in small and medium-sized enterprises: the perspective of selected German SMEs. In: IEEE Federated Conference on Computer Science and Information Systems, pp. 1181–1190 (2014). doi:10.15439/2014F24

  4. Al-Mashari, M., Al-Mudimigh, A., Zairi, M.: Enterprise resource planning: a taxonomy of critical factors. Eur. J. Oper. Res. 146(2), 352–364 (2003). doi:10.1016/S0377-2217(02)00554-4

    Article  MATH  Google Scholar 

  5. Tsai, M.T., Li, E.Y., Lee, K.W., Tung, W.H.: Beyond ERP implementation: the moderating effect of knowledge management on business performance. Total Qual. Manag. 22(2), 131–144 (2011). doi:10.1080/14783363.2010.529638

    Article  Google Scholar 

  6. Hassabelnaby, H.R., Hwang, W., Vonderembse, M.A.: The impact of ERP implementation on organizational capabilities and firm performance. Benchmarking Int. J. 19(4/5), 618–633 (2012). doi:10.1108/14635771211258043

    Article  Google Scholar 

  7. Garg, P., Garg, A.: Factors influencing ERP implementation in retail sector: an empirical study from India. J. Enterp. Inf. Manag. 27(4), 424–448 (2014). doi:10.1108/JEIM-06-2012-0028

    Article  Google Scholar 

  8. Chien, S.W., Lin, H.C., Shih, C.T.: A moderated mediation study: cohesion linking centrifugal and centripetal forces to erp implementation performance. Int. J. Prod. Econ. 158, 1–8 (2014). doi:10.1016/j.ijpe.2014.06.001

    Article  Google Scholar 

  9. Muscatello, J., Chen, I.: Enterprise resource planning (ERP) implementations: theory and practice. Int. J. Enter. Inf. Syst. 4(1), 63–78 (2008)

    Article  Google Scholar 

  10. Zhang, Z., Lee, M.K., Huang, P., Zhang, L., Huang, X.: A framework of ERP systems implementation success in China: an empirical study. Int. J. Prod. Econ. 98(1), 56–80 (2005). doi:10.1016/j.ijpe.2004.09.004

    Article  Google Scholar 

  11. Saini, S., Nigam, S., Misra, S.C.: Identifying success factors for implementation of ERP at Indian SMEs: a comparative study with Indian large organizations and the global trend. J. Mod. Manag. 8(1), 103–122 (2013). doi:10.1108/17465661311312003

    Article  Google Scholar 

  12. Awa, H.O., Ojiabo, O.U.: A model of adoption determinants of ERP within TOE framework. Inf. Technol. People 29(4), 901–930 (2016). doi:10.1108/ITP-03-2015-0068

    Article  Google Scholar 

  13. Ram, J., Corkindale, D., Wu, M.L.: Implementation critical success factors (CSFs) for ERP: do they contribute to implementation success and post-implementation performance? Int. J. Prod. Econ. 144, 157–174 (2013). doi:10.1016/j.ijpe.2013.01.032

    Article  Google Scholar 

  14. Garg, P., Chauhan, A.: Factors affecting the ERP implementation in Indian retail sector. Benchmarking Int. J. 22(7), 1315–1340 (2015). doi:10.1108/BIJ-11-2013-0104

    Article  Google Scholar 

  15. Garg, P., Agarwal, D.: Critical success factors for ERP implementation in a Fortis hospital. J. Enterp. Inf. Manag. 27(4), 402–423 (2014). doi:10.1108/JEIM-06-2012-0027

    Article  Google Scholar 

  16. Ram, J., Corkindale, D.: How “critical” are the critical success factors (CSFs)? Examining the role of CSFs for ERP. Bus. Process Manag. J. 20(1), 151–174 (2014). doi:10.1108/BPMJ-11-2012-0127

    Article  Google Scholar 

  17. Shaul, L., Tauber, D.: Critical success factors in enterprise resource planning systems: review of the last decade. ACM Comput. Surv. 45(4), 1–39 (2013). doi:10.1145/2501654.2501669

    Article  Google Scholar 

  18. Doom, C., Milis, K., Poelmans, S., Bloemen, E.: Critical success factors for ERP implementations in Belgian SMEs. J. Enterp. Inf. Manag. 23(3), 378–406 (2010). doi:10.1108/17410391011036120

    Article  Google Scholar 

  19. Saade, R., Nijher, H.: Critical success factors in enterprise resource planning implementation: a review of case studies. J. Enterp. Inf. Manag. 29(1), 72–96 (2016). doi:10.1108/JEIM-03-2014-0028

    Article  Google Scholar 

  20. Poba-Nzaou, P., Raymond, L., Fabi, B.: Adoption and risk of ERP systems in manufacturing SMEs - a positivist case study. Bus. Process Manag. J. 14(4), 530–550 (2008). doi:10.1108/14637150810888064

    Article  Google Scholar 

  21. Lee, C.K., Lee, H.H., Kang, M.: Successful implementation of ERP systems in small businesses: a case study in Korea. Serv. Bus. 2(4), 275–286 (2008). doi:10.1007/s11628-008-0045-3

    Article  MathSciNet  Google Scholar 

  22. Sumner, M.R., Bradley, J.: CSF’s for implementing ERP within SME’s. In: AMCIS 2009 Proceedings, San Francisco, pp. 1–11 (2009)

    Google Scholar 

  23. Xia, Y., Lok, P., Yang, S.: The ERP implementation of SME in China. In: 6th International Conference on Service Systems and Service Management, pp. 135–140. IEEE Press (2009). doi:10.1109/ICSSSM.2009.5174870

  24. Basu, R., Upadhyay, P., Das, M.C., Dan, P.K.: An approach to identify issues affecting ERP implementation in Indian SMEs. J. Ind. Eng. Manag. 5(1), 133–154 (2012). doi:10.3926/jiem.416

    Google Scholar 

  25. Grandhi, S., Chugh, R.: Implementation strategies for ERP adoption by SMEs. In: Kim, T., Ko, D., Vasilakos, T., Stoica, A., Abawajy, J. (eds.) FGCN 2012. CCIS, vol. 350, pp. 210–216. Springer, Heidelberg (2012). doi:10.1007/978-3-642-35594-3_30

    Chapter  Google Scholar 

  26. Nikitovic, Μ., Strahonja, V.: The analysis of CSFs in stages of ERP implementation? Case study in small and medium-sized (SME) companies in Croatia. In: 39th International Convention on Information and Communication Technology, Electronics and Microelectronics, pp. 1494–1499. Croatian Society MIPRO (2016). doi:10.1109/MIPRO.2016.7522375

  27. Shaul, L., Tauber, D.: CSFs along ERP life-cycle in SMEs: a field study. Ind. Manag. Data Syst. 112(3), 360–384 (2012). doi:10.1108/02635571211210031

    Article  Google Scholar 

  28. Ahmad, M.M., Cuenca, R.P.: Critical success factors for ERP implementation in SMEs. Robot. Comput. Integr. Manuf. 29(3), 104–111 (2013). doi:10.1016/j.rcim.2012.04.019

    Article  Google Scholar 

  29. Christofi, M., Nunes, M., Chao Peng, G., Lin, A.: Towards ERP success in SMEs through business process review prior to implementation. J. Syst. Inf. Technol. 15(4), 304–323 (2013). doi:10.1108/JSIT-06-2013-0021

    Article  Google Scholar 

  30. Xie, Y., James Allen, C., Ali, M.: An integrated decision support system for ERP implementation in small and medium sized enterprises. J. Enterp. Inf. Manag. 27(4), 358–384 (2014). doi:10.1108/JEIM-10-2012-0077

    Article  Google Scholar 

  31. Bansal, V., Agarwal, A.: Enterprise resource planning: identifying relationships among critical success factors. Bus. Process Manag. J. 21(6), 1337–1352 (2015). doi:10.1108/BPMJ-12-2014-0128

    Article  Google Scholar 

  32. Almajali, D.A., Masa’deh, R.E., Tarhini, A.: Antecedents of ERP systems implementation success: a study on jordanian healthcare sector. J. Enterp. Inf. Manag. 29(4), 549–565 (2016). doi:10.1108/JEIM-03-2015-0024

    Article  Google Scholar 

  33. Berg, B.L., Lune, H., Lune, H.: Qualitative Research Methods for the Social Sciences. Pearson, Boston (2004)

    Google Scholar 

  34. Sharma, R., Yetton, P.: The contingent effects of management support and task interdependence on successful information systems implementation. MIS Q. 27(4), 533–555 (2003)

    Google Scholar 

  35. Al-Mashari, M.: A process change-oriented model for ERP application. Int. J. Hum. Comput. Interact. 16(1), 39–55 (2003). doi:10.1207/S15327590IJHC1601_4

    Article  Google Scholar 

  36. Umble, J.E., Haft, R.R., Umble, M.M.: Enterprise resource planning: implementation procedures and critical success factors. Eur. J. Oper. Res. 146(2), 241–257 (2003). doi:10.1016/S0377-2217(02)00547-7

    Article  MATH  Google Scholar 

  37. Dezdar, S., Ainin, S.: Examining ERP implementation success from a project environment perspective. Bus. Process Manag. J. 17(6), 919–939 (2011). doi:10.1108/14637151111182693

    Article  Google Scholar 

  38. Cadden, T., Marshall, D., Cao, G.: Opposites attract: organisational culture and supply chain performance. Supply Chain Manag. Int. J. 18(1), 86–103 (2013). doi:10.1108/13598541311293203

    Article  Google Scholar 

  39. Jones, C.M., Cline, M., Ryan, S.: Exploring knowledge sharing in ERP implementation: an organizational culture framework. Decis. Support Syst. 41, 411–434 (2006). doi:10.1016/j.dss.2004.06.017

    Article  Google Scholar 

  40. Jarvenpaa, L.S., Staples, S.D.: Exploring perceptions of organizational ownership of information and expertise. J. Manag. Inf. Syst. 18(1), 151–183 (2001). doi:10.1080/07421222.2001.11045673

    Google Scholar 

  41. Ruppel, P.C., Harrington, J.S.: Sharing knowledge through intranets: a study of organizational culture and intranet implementation. IEEE Trans. Prof. Commun. 44(1), 37–52 (2001). doi:10.1109/47.911131

    Article  Google Scholar 

  42. Liang, H., Saraf, N., Hu, Q., Xue, Y.: Assimilation of enterprise systems: the effect of institutional pressures and the mediating role of top management. MIS Q. 31(1), 59–87 (2007)

    Google Scholar 

  43. Waarts, E., van Everdingen, Y.M., van Hillegersberg, J.: The dynamics of factors affecting the adoption of innovations. J. Prod. Innov. Manag. 19(6), 412–423 (2002). doi:10.1111/1540-5885.1960412

    Article  Google Scholar 

  44. Wang, G.T.E., Lin, C.L.C., Jiang, J.J., Klein, G.: Improving enterprise resource planning (ERP) fit to organizational process through knowledge transfer. Int. J. Inf. Manag. 27(3), 200–212 (2007). doi:10.1016/j.ijinfomgt.2007.02.002

    Article  Google Scholar 

  45. Wang, G.T.E., Chen, F.H.J.: Effects of internal support and consultant quality on the consulting process and ERP system quality. Decis. Support Syst. 42(2), 1029–1041 (2006). doi:10.1016/j.dss.2005.08.005

    Article  Google Scholar 

  46. Koh, S.C.L., Simpson, M., Padmore, J., Dimitriadis, N., Misopoulos, F.: An exploratory study of enterprise resource planning adoption in Greek companies. Ind. Manag. Data Syst. 10(7), 1033–1059 (2006). doi:10.1108/02635570610688913

    Article  Google Scholar 

  47. Hong, K.K., Kim, Y.G.: The critical success factors for ERP implementation: an organizational fit perspective. Inf. Manag. 40, 25–40 (2002). doi:10.1016/S0378-7206(01)00134-3

    Article  Google Scholar 

  48. Nah, F.H., Zuckweiler, K.M., Lau, L.S.: ERP Implementation: chief information officers’ perceptions of CSF. Int. J. Hum. Comput. Interact. 16(1), 5–22 (2003). doi:10.1207/S15327590IJHC1601_2

    Article  Google Scholar 

  49. Bradley, J.: Management based critical success factors in the implementation of Enterprise Resource Planning systems. Int. J. Acc. Inf. Syst. 9(3), 175–200 (2008). doi:10.1016/j.accinf.2008.04.001

    Article  Google Scholar 

  50. Yusuf, Y., Gunasekaranb, A., Abthorpe, M.S.: Enterprise information systems project implementation: a case study of ERP in Rolls-Royce. Int. J. Prod. Econ. 87, 251–266 (2004). doi:10.1016/j.ijpe.2003.10.004

    Article  Google Scholar 

  51. Madapusi, A., D’Souza, D.: The influence of ERP system implementation on the operational performance of an organizational. Int. J. Inf. Manag. 32(1), 24–34 (2012). doi:10.1016/j.ijinfomgt.2011.06.004

    Article  Google Scholar 

  52. Yeh, T.M., Yang, C.C., Lin, W.T.: Service quality and ERP implementation: a conceptual and empirical study of semiconductor-related industries in Taiwan. Comput. Ind. 58(8–9), 844–854 (2007). doi:10.1016/j.compind.2007.03.00

    Article  Google Scholar 

  53. Law, H.C.C., Ngai, T.W.E.: ERP systems adoption: an exploratory study of the organizational factors and impacts of ERP success. Inf. Manag. 44, 418–432 (2007). doi:10.1016/j.im.2007.03.004

    Article  Google Scholar 

  54. Gupta, M., Kohli, A.: Enterprise resource planning systems and its implications for operations function. Technovation 26(5–6), 687–696 (2006). doi:10.1016/j.technovation.2004.10.005

    Article  Google Scholar 

  55. EU Commission: Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium enterprises (2003). http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:124:0036:0041:en:PDF

  56. European Union: Annual Report on EU SMEs 2014/2015 (2015). doi:10.2873/886211

  57. Hair, F., Anderson, R., Tatham, R., Black, W.: Multivariate Data Analysis with Readings. Prentice-Hall International, London (1995)

    Google Scholar 

  58. Schumacker, R.E., Lomax, R.G.: A Beginner’s Guide to Structural Equation Modeling. Routledge Academic, New York (2010)

    MATH  Google Scholar 

  59. Ziemba, E., Kolasa, I.: Risk factors framework for information systems projects in public organizations – Insight from Poland. In: Proceedings of 2015 Federated Conference on Computer Science and Information Systems, pp. 1575–1583 (2015). doi:10.15439/2015F110

  60. Ziemba, E., Kolasa, I.: Risk factors relationships for information systems projects – Insight from Polish public organizations. In: Ziemba, E. (ed.) FedCSIS 2015. LNBIP, vol. 243, pp. 55–76. Springer, Heidelberg (2016). doi:10.1007/978-3-319-30528-8_4

    Chapter  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Dimitrios Chatzoudes .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer International Publishing AG

About this paper

Cite this paper

Chatzoglou, P., Chatzoudes, D., Fragidis, L., Symeonidis, S. (2017). Examining the Critical Success Factors for ERP Implementation: An Explanatory Study Conducted in SMEs. In: Ziemba, E. (eds) Information Technology for Management: New Ideas and Real Solutions. ISM AITM 2016 2016. Lecture Notes in Business Information Processing, vol 277. Springer, Cham. https://doi.org/10.1007/978-3-319-53076-5_10

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-53076-5_10

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-53075-8

  • Online ISBN: 978-3-319-53076-5

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics