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Faisal Mahmood, Abdul Zahid Khan and Rahat Hussain Bokhari
Despite more than two decades of experience regarding the adoption and implementation of enterprise resource planning (ERP) systems in organizations, ERPs success is questionable…
Abstract
Purpose
Despite more than two decades of experience regarding the adoption and implementation of enterprise resource planning (ERP) systems in organizations, ERPs success is questionable. Though ERPs success stories are published in past research studies, the failure rate of ERP systems is relatively high. The purpose of this study was to find issues and challenges and assess the degree of criticality of these issues/challenges faced by organizations during ERP implementation.
Design/methodology/approach
For doing systematic review/research synthesis systematic literature review (SLR) was carried out considering research studies published within the time period, i.e. 1999-2018. Three major steps such as planning, conducting and reporting were followed to proceed further in this study. This study attempted to accomplish a critical review of 53 studies out of 103 studies identified, which were published in reputable journals to synthesize the existing literature in the ERP domain. The studies selected have almost addressed different challenges/issues faced by small and large organizations during ERP implementation.
Findings
Research synthesis/SLR led to the identification of 31 issues/challenges, which may be termed as most critical based on their occurrence/frequency in past studies included. The topmost ten issues/challenges amongst 31 identified include top management approach, change management, training and development, effective communication, system integration, business process reengineering, consultants/vendors selection, project management, project team formation, team empowerment/skilled people and data conversing/migration. However, other issues/challenges identified such as security risks/data security, cloud awareness, functionality limitations, service level agreements and subscription expenses are more related to cloud ERPs.
Originality/value
The current study is unique in its kind, focusing on the issues and challenges faced by organization during implementing ERP projects. Moreover, this study contributes to understanding and further analyzing management capabilities for developing remedial measures while planning the implementation of an enterprise system in their organizations prior to the occurrence of different issues and challenges ahead. The study also led to understanding and explaining socio-technical issues and their severity.
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Ransome Epie Bawack and Jean Robert Kala Kamdjoug
Enterprise resource planning (ERP) consultants have the expertise required to understand the specific contextual needs of an ERP client, implement tailored business processes that…
Abstract
Purpose
Enterprise resource planning (ERP) consultants have the expertise required to understand the specific contextual needs of an ERP client, implement tailored business processes that meet those needs, and ensure that no potential benefit offered by the ERP remains unexplored by the client. However, conflicts between ERP clients and consultants are a significant source of non-benefit realisation, making managing client–consultant agency crucial to ERP post-implementation benefits realisation. This paper aims to elucidate how managing client–consultant agency affects the benefits derived from ERP systems.
Design/methodology/approach
This paper uses microfinance institutions in 15 sub-Saharan African countries to explore different paths through which managing client–consultant agency leads to benefit realisation in ERP projects. It uses partial least squares structural equation modelling to analyse data from 127 managers and explains the results using insights from agency theory and the information system (IS) success model.
Findings
This paper reveals three routes through which contractual agreements and conflict resolution strategies lead to benefits realisation in ERP projects.
Originality/value
This is the first study that attempts to provide quantitative evidence of how managing the complex relationship between ERP project stakeholders affects ERP project success. It also contributes a novel theoretical model for ERP benefits realisation to complement existing research on ERP agency issues, critical success factors, and benefits realisation.
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Sudhaman Parthasarathy and Maya Daneva
Customization is a difficult task for many organizations implementing enterprise resource planning (ERP) systems. The purpose of this paper is to develop a new framework based on…
Abstract
Purpose
Customization is a difficult task for many organizations implementing enterprise resource planning (ERP) systems. The purpose of this paper is to develop a new framework based on customers’ requirements to examine the ERP customization choices for the enterprise. The analytical hierarchy process (AHP) technique has been applied complementarily with this framework to prioritize ERP customization choices.
Design/methodology/approach
Based on empirical literature, the paper proposed an ERP customization framework anchored on the customer's requirements. A case study research method was used to evaluate the applicability of the framework in a real-life setting. In a case study with 15 practitioners working on the vendor's and the client's sides in an ERP implementation, the paper applied the framework jointly with the AHP technique to prioritize the feasible customization choices for ERP implementation.
Findings
The paper demonstrates the applicability of the framework in identifying the various feasible choices for the client organization to consider when they decide to customize their selected ERP product.
Research limitations/implications
Further case studies need to be carried out in various contexts to acquire knowledge about the generalizability of the observations. This will also contribute to refining the proposed ERP customization framework.
Practical implications
Very few literature sources suggest methods for exploring and evaluating customization options in ERP projects from requirements engineering perspective. The proposed framework helps practitioners and consultants anchor the customization decisions on the customer's requirements and use a well-established prioritization technique, AHP, to identify the feasible customization choices for the implementing enterprise.
Originality/value
No previously published research studies provide an approach to prioritize customization choices for ERP anchored on the customer's requirements.
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Subhasish Dutta and J. Ajith Kumar
Previous research has investigated knowledge transfer and the external consultant's role in it, during enterprise resource planning (ERP) implementation. In this study, the…
Abstract
Purpose
Previous research has investigated knowledge transfer and the external consultant's role in it, during enterprise resource planning (ERP) implementation. In this study, the authors explore the processes through which knowledge creation happens during ERP implementation and how external consultants help operationalize the same.
Design/methodology/approach
The authors engaged the SECI model of the theory of organizational knowledge creation and conducted an interpretive study that interviewed 14 ERP implementation experts in India. The interviews were transcribed and then analyzed using the ATLAS.ti package.
Findings
The findings reveal fine insights into how knowledge creation takes place during ERP implementation through the four modes of knowledge conversion – socialization (S), externalization (E), combination (C) and internalization (I). The external consultants aid in operationalizing this knowledge creation process through five types of knowledge-related activities: (I) importing external knowledge, (D) discovering internal knowledge, (E) extricating confined knowledge, (A) activating flows of knowledge and (S) solving problems using knowledge. These activities can be represented by the acronym, I-D-E-A-S.
Originality/value
The study makes two overarching contributions: (1) offering an interpretation and description of ERP implementation as a knowledge creation process and (2) extending the understanding of the external consultants' role during ERP implementation to include new knowledge creation.
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Placide Poba-Nzaou, Louis Raymond and Bruno Fabi
This study aims to explore the process of open source software (OSS) adoption in small- and medium-sized enterprises (SMEs), and more specifically open source enterprise resource…
Abstract
Purpose
This study aims to explore the process of open source software (OSS) adoption in small- and medium-sized enterprises (SMEs), and more specifically open source enterprise resource planning (ERP) as a “mission critical” OSS application in manufacturing. It also addresses the fundamental issue of ERP risk management that shapes this process.
Design/methodology/approach
The approach is done through an interpretive case study of a small Canadian manufacturer that has adopted an open source ERP system.
Findings
Interpreted in the light of the IT risk management, OSS and packaged application adoption literatures, results indicate that the small manufacturer successfully managed the adoption process in a rather intuitive manner, based on one guiding principle and nine practices. In analyzing the data, diffusion of innovation theory appeared to fit rather well with the situation observed and to offer rich insights to explain the mission-critical OSS adoption process.
Research limitations/implications
A single case study of successful IT adoption should be eventually counterbalanced by future cases considered to be partial or total failures, using a wider multiple case study approach for comparative purposes. And this should include alternative theoretical interpretations and more detailed empirical work on the extent to which the distinctive features of OSS make its adoption more or less risk-laden. This initial effort should also be followed by further research on mission-critical OSS adoption in contexts other than SMEs (e.g. healthcare organizations) and other than ERP (e.g. customer-relationship management).
Practical implications
This research confirms that open source is a credible alternative for SMEs that decide willingly or under external pressure to adopt a mission-critical system such as ERP. Moreover, it suggests that a high level of formalization is not always necessary.
Originality/value
The authors argue that rich insights into the dynamics of the mission-critical OSS adoption process can be obtained by framing this process within an IT risk management context.
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The concept of “routines” is used to classify diverse enterprise application systems (EAS) into a framework. The purpose of this paper is to discuss the theoretical underpinnings…
Abstract
Purpose
The concept of “routines” is used to classify diverse enterprise application systems (EAS) into a framework. The purpose of this paper is to discuss the theoretical underpinnings and EAS falling into each of the framework quadrants. The framework provides a guideline for firms to meet their EAS‐organizational alignment challenges.
Design/methodology/approach
The EAS‐organizational alignment framework in this paper is developed through a synthesis of literature. The framework links EAS and organizational routines according to intra‐ and inter‐levels of organizational analysis and inflexible and flexible governance mechanisms.
Findings
The findings suggest that a fit between EAS routines and organizational routines leads to successful EAS deployments and hence improved business performance.
Research limitations/implications
The findings provide researchers with reasons to incorporate routines into existing research models to better explain EAS‐organizational alignment. The next step is to empirically validate the EAS‐organizational alignment framework.
Practical implications
Firms can gain an understanding of how EAS routines and organizational routines can be manipulated to positively influence EAS‐organizational alignment and hence increase business performance. Firms can use routines as strategic tools for adoption and successful deployment of EAS across their global operations.
Originality/value
The paper's findings provide a perspective, different from past research, on our understanding of EAS‐organizational alignment and offer valuable guidance for future research in this area.
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Shahin Dezdar and Ainin Sulaiman
The purpose of this paper is to investigate the current literature base of critical success factors (CSFs) of enterprise resource planning (ERP) implementations, provide a…
Abstract
Purpose
The purpose of this paper is to investigate the current literature base of critical success factors (CSFs) of enterprise resource planning (ERP) implementations, provide a systematic compilation of CSFs, and present a new comprehensive taxonomy of CSFs for ERP system implementation.
Design/methodology/approach
This paper compiles literature that highlighted possible references to CSFs for ERP implementation projects. Given that the purpose of this paper is to achieve a depth of understanding of the various CSFs already identified by other researchers, “content analysis” is used. Four stages of content analysis are adopted to collect and analyse the literature, i.e. data collection, open coding, axial coding, and selective coding.
Findings
By analyzing all CFSs mentioned in literature during the last ten years (1999‐2008), taxonomy of ERP CSFs implementation was formulated. In total 17 CSFs were identified, which is then categorized into five main categories.
Research limitations/implications
Literature is collected from selected databases and journals from 1999 to 2008.
Practical implications
This paper is significant because taxonomy helps us organize the knowledge. Taxonomy can help the researchers to make their search easier by assigning CSFs to a category and defining relationships between those categories.
Originality/value
The output of this paper will help future researchers to increase identification of related studies in the literature review phase of their work.
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