End Users' Perceptions of Critical Success Factors in ERP Applications

End Users' Perceptions of Critical Success Factors in ERP Applications

Ebru E. Saygili (College of Business, Department of International Trade and Finance, Yasar University, Izmir, Turkey), Yucel Ozturkoglu (College of Business, Department of International Logistics Management, Yasar University, Izmir, Turkey) and Mehmet C. Kocakulah (College of Business Administration, University of Wisconsin La Crosse, LaCrosse, WI, USA)
Copyright: © 2017 |Pages: 18
DOI: 10.4018/IJEIS.2017100104
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Abstract

Today's competitive world is given the critical role of enterprise resource planning (ERP) for coordinating the workflow in companies from different industries. To provide valuable insights into ERP, identifying the critical factors are the most important issue in achieving quality and success. Both in literature and practice, there are quite a few of success factors for ERP applications. One of the purposes of this paper is to empirically classify the most important critical factors referred by scholars in previous studies. Another purpose is to determine the critical success factors in the light of end-user perceptions. In this respect, exploratory factor analysis was conducted to determine the factorial structure of the scale. Data was collected 128 ERP end-users from different departments of companies in manufacturing industry. The results of the analysis provided a six-dimensional structure for critical success factors (CSFs) in quality and successful ERP applications.
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1. Introduction

Enterprise Resource Planning systems integrate business functions and departments allowing rapid flow of information within the organization. The widespread usage of internet expanded the scope of ERP by providing inter-organizational integration (Eckhartz et al., 2010; Alimazighi & Bouhmadi, 2011; Grant et al., 2013). Due to the developments in cloud computing and SaaS (Software as a Service) delivery models, it is predicted that ERP systems will continue to produce information system solutions for corporations (Lucintel, 2012). Additionally, an extensive usage of ERPs by SMEs (Ahmad & Cuenca, 2013; Chang et al., 2010, Malhotra & Temponi, 2010; Doom et al. 2010) and developing countries (Research & Markets, 2012; IDC, 2012; Chan, 2011) are being observed as vendors are offering more economic costs. Studies in developing countries include China (Srivastava et al., 2009; Zhang et al., 2005; Zhu et al., 2010), Taiwan (Liu, 2011), Iran (Amid et al., 2012), India (Garg and Agarwal, 2014), Poland (Ziemba & Oblak, 2013) and Saudi Arabia (Aldayel et al., 2011; Ullah et al. 2013).

On the other hand, various difficulties still arise in ERP applications in terms of duration overruns, cost overruns and received benefits. According to Panorama’s (2013) independent ERP research, approximately 59% of projects have exceeded their planned budgets, 53% of projects have exceeded their planned durations and a full 56% of respondent organizations have received less than 50% of the measurable benefits they expected from their ERP applications. Therefore, scholars continue to explore the critical factors in achieving success and quality in ERP applications (Ram & Conkindale, 2014). Initial studies considered ERP applications as a project and introduced a number of critical success factors at implementation stage (Bingi et al., 1999; Nah et al., 2001; Basoglu et al., 2007). Recent studies argue that ERP applications are more than IT projects (Ahmad & Cuenca, 2013) and emphasize the significance of continuity in post-implementation stages (Zhu et al., 2010; Ifinedo et al., 2010, Ozturkoglu & Esendemir, 2014) and interrelations of critical success factors (Grabski et al., 2011).

In the critical success factors (CSFs) research stream, quite a few factors are identified by the past studies and the most important factors are evaluated according to the occurrence rates of CSFs (Ahmad & Cuenca, 2013). Furthermore, scholars proposed taxonomies for practitioners and researchers (Nah et al., 2001; Basoglu et al., 2007; Dezdar & Sulamain, 2009). Most of the studies have focused on the evaluations of project managers, senior executives and IT personnel in determining the critical factors affecting the application success. Whereas, end-users play a critical role in the success and quality of ERP applications at every stage. Therefore, we believe the perceptions of end-users about CSFs should also be examined.

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