A Case Study of a Government-Sponsored Enterprise Resource Planning Project in a Chinese Apparel Company

A Case Study of a Government-Sponsored Enterprise Resource Planning Project in a Chinese Apparel Company

Wendy Wang (College of Business, Trident University International, Cypress, CA, USA) and Drew Hwang (California State Polytechnic University - Pomona, Pomona, CA, USA)
Copyright: © 2012 |Pages: 14
DOI: 10.4018/jeis.2012100103


There is much literature on problems pertaining to information systems localization in Chinese companies, yet few had been on how companies solve these problems. This paper presents a case study that uses the technology, organization, and environment (TOE) framework to explain the failure of a Chinese apparel company’s initial enterprise resource planning (ERP) effort and the success of its subsequent endeavor. Using the TOE framework, this paper sheds light on issues that inflict Chinese companies in their informationization process and what can be done to increase the possibilities of system success.
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Literature Review

Most ERP literatures (Ang et al., 1995; Law & Ngai, 2007; Sheu et al., 2004; Zhang et al., 2005) focus on one or a few ERP success factors (e.g., cultural mix, top management support, clear goals and objectives, support within the company, vendor knowledge, suitability of hardware/software, and data accuracy/integrity). Because the impact of ERP is felt across the organization, it is crucial for ERP studies to capture as many success factors as possible.

According to the technology, organization, and environment theory (TOE), the process by which a firm adopts and implements technological innovations is influenced by the technological context, the organizational context, and the environmental context (Tornatzky & Fleischer, 1990). This description covers a wide range of factors related to ERP implementation. Even though ERP itself is not new, it is still a technological innovation perceived by the adopter company (Rogers, 1983). Therefore, it is appropriate to use the TOE innovation theory as a frame of reference in this paper.

TOE has been applied in research on the adoption of various information technologies such as EDI, open sources, general information systems, and ERP (Chau & Tam, 1997; Chwelos, Benbasat, & Dexter, 2001; Iacovou, Benbasat, & Dexter, 1995; Kuan & Chau, 2001; Pan & Jang, 2008; Tarafdar & Vaidya, 2007; Thong, 1999; Zhu, Li, Wang, & Chen, 2010). It has also been used in studying ERP adoption in the Chinese context (Zhu et al., 2010). In this case study, we use the TOE framework to examine factors that contributed to the failure of a Chinese company’s initial attempt of ERP adoption and their subsequent success.

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