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This paper focuses on the influences and characteristics of the enterprise resource planning (ERP) acquisition process (ERPAP) that were found during a multiple‐case study of four organizations that had acquired ERP solutions. From organizational buying behaviour (OBB), Webster and Wind’s (Prentice‐Hall, Englewood Cliffs, NJ, 1972) served as the basis for categorizing the influences that surfaced during the study. While Webster and Wind’s model presents a broad scope of variables that might affect organizational buying without distinguishing those variables that are dependent on specific buying situations, the research herein highlights variables (influences and characteristics) specific to the buying situation for ERP software packages. Numerous influences emerged, among the most notable of which was the influence of users. Five prominent characteristics were also noted. A future study of these influences could examine the extent to which they impact the ERPAP and could serve to help organizations minimize those that are shown to hinder it.

As the wrong Enterprise Software (ES) acquisition can lead an organization with chronically exceeded budgets and settling for minimum returns, so can an unfavorable contractual agreement. Often the acquiring organizations become vulnerable to risks and mistakes as the software contracts are habitually written using legal terminologies and mainly to the advantage of the vendor. To avoid costly ES contracting mistakes, the purpose of this paper is to empirically identify the critical success factors (CSFs) of contracting in the context of ES acquisition.

A questionnaire survey was conducted to gather the data for this study. Statistical analysis conducted for this study include descriptive statistics, factor analysis with reliability and validity tests and nonparametric test.

The five key factors are: contractual assurance, forward compatibility and licensing; right to use, own and use of own, confidentiality and payment; software acceptance; license assignment; and vendor obligation for intellectual property. The research and managerial implications of these factors are given in discussion.

As with most empirical studies, the subjectivity of the opinion of respondents from only two industries presents some limitations to generalization. Another limitation is the respondent has been asked for the degree of criticality for each of the contracting issue given in the questionnaire. There could be critical issues other than the listed ones which are more specific to the organization.

The results can be used by managers to improve their understanding on the critical contractual issues in ES acquisition negotiations.

The significant value of this study identifies the CSFs for ES contract negotiations while acquiring the software.

The purpose of this paper is to understand the decision process of enterprise software acquisition. The research aims to focus on identifying significant influences on enterprise software acquisition decisions.

As a research model and theoretical background, the organizational buying model (OBB) is proposed for the acquisition of enterprise systems. Influences on enterprise software acquisition decision processes were found by an empirical study carried out from a practitioner's perspective. The study collected data via a mail survey administered to information systems (IS) professionals involved in the acquisition of enterprise software (ES). The survey questionnaire was developed based on a previous research project and a literature review. Organizational buying behavior (OBB) models in the literature served as the basis for the influences included in the survey instrument. Factor analysis was carried out on the survey data to identify the most significant factors/influences.

The following five factors emerged as significant influences on the acquisition decision process of enterprise software: ES strategy and performance; BPR and adaptability; management commitment and user buy‐in; single vendor integrated solution; and consultants, team‐location, and vendor's financing. These factors are discussed and managerial implications are extracted. Conclusions are derived from the study findings and guidelines for further research are suggested.

The present study provides a starting point for further research in understanding a more comprehensive list of influences on enterprise software acquisition. A bigger sample from more industries is required to examine whether the significance of the influences remains stable.

Using OBB models has proven to be useful for organizations in making effective decisions on enterprise software acquisition.

This paper aims to present a discussion of the critical success factors (CSF) that affect the acquisition process for enterprise resource planning (ERP) software.

The research strategy was a multiple‐case design with three organizations that had recently completed the acquisition of an ERP solution. The rationale for the multiple‐case design was that, as a research strategy, the focus could be directed to understanding the dynamics and complexities present within each case, these being critical success factors of the ERP software acquisition process within the organization.

This study identified ten factors critical to the successful outcome of acquiring an ERP solution. Their omission would have resulted in a less than optimal outcome for the organization. For each of the three cases, the elements that stand out the most are as follows: clear and unambiguous authority, a structured, rigorous and user‐driven process, its planning, the establishment of criteria, and the sense of partnership that the team works to establish not only with various user commitments, but also with the potential vendor.

It is important to note that no one CSF alone is going to make an ERP acquisition successful. It is rather the combination of several critical factors that will result in its successful outcome.

Decribes how ESC, a holding company for a gas and electric utility and non‐utility energy business, completed the acquisition of Oracle’s enterprise resource planning (ERP) solution (finance and related applications) at a cost of US$6.5 million in March 1997. From initiation to completion, the acquisition took approximately six months. The structure of the acquisition process that emerged from the data revealed six distinctive iterative, recursive and inter‐related processes that, together, form a complex web of activity and tasks for the acquisition of ERP software. These activities and tasks are described and analyzed as a function of the six processes. The ERP acquisition process developed by ESC for this acquisition was non‐typical of their normal procurement practices and proved to be a significant learning experience for the entire organization. This case provides a useful illustration of “good practice” and sets forth the framework for the ERP acquisition process.

Discusses the acquisition team formation, the interdisciplinary nature of the teams and the roles of the steering committee, MIS, purchasing and users for an ERP solution. The goal of the paper in presenting these is to make you aware that the composition of the acquisition teams is a critical factor that affects the acquisition process.

Keller Manufacturing, a mid‐sized furniture manufacturer, completed the purchase of an enterprise resource planning (ERP) software solution in August of 1996 at a cost of US$1 million. From 12 individuals who participated on Keller’s acquisition team, the four principals were interviewed for this case. The structure of the acquisition process that emerged from the data revealed six distinctive iterative, recursive and inter‐related processes that, together, form a complex web of activity and tasks for the acquisition of ERP software. These activities and tasks are described and analyzed as a function of the six processes. The ERP acquisition process developed by Keller for this purchase was atypical of their normal purchasing practices and proved to be a significant learning experience for the entire organization. This case provides a useful illustration of “good practice” and sets forth the framework for the ERP acquisition process.

Despite the extensive body of research on the relationship between trust and performance in a supply chain environment, the concepts and the relationship between them has not been fully understood. The purpose of this paper is to develop a model that links the antecedents of trust, trust itself and firm outcome success.

A questionnaire survey was conducted to gather the data for this study. Statistical analysis included factor analysis with reliability and validity tests, and partial least square of structural equation modeling.

The data suggest that trust is built principally through supplier centric traditional performance metrics such as delivery reliability and product quality conformance. However, contrary to the extant literature, the people oriented trust enablers (e.g. personnel exchange, interpersonal contacts) have no bearing on the establishment of trust.

The research limitation is the relatively small sample size. However, this study can be perceived as a directional one for further research.

The results can be used by the managers to improve their understanding on the relationship with other parties in the supply chain.

The significant value of this research can be retained by buying firm managers. The results are particularly important for them to improve their understanding in how they allocate time and resources in managing their supply chains and partner firms.

The purpose of this paper is to suggest a framework that would guide the practicing manager to decide the degree of information systems (IS) outsourcing.

The proposed framework has been derived from the findings of a previous empirical study and qualitative inputs. Analytical hierarchy process (AHP) is then used to apply the framework. The framework is finally validated in three India‐based banks.

The proposed framework helps in creating a strategic alignment between the business strategy and information system strategy. The application of the framework shows the preference of managers towards high IS outsourcing. Strategic alignment and medium term impact emerge the important factors in IS outsourcing. The validity of the framework is proved in three banks.

The validation exercise has been done on a small sample due to resources constraints and a study involving a larger sample is desired. Further, it is advised to review the framework on regular intervals and make suitable changes in decision factors.

The framework is helpful to managers in identifying the critical factors which can act as useful inputs in taking informed decisions on the degree of IS outsourcing.

The paper fills some of the gaps in IS outsourcing by suggesting a practice‐ oriented framework that guides the decision maker to undertake a systematic and structured approach in arriving at an outsourcing decision. The framework has evolved from the practices of banks in India for which there does not exist any similar research.