Investigating Critical Success Factors Affecting ERP Implementation in Chinese and Pakistani Enterprises

Investigating Critical Success Factors Affecting ERP Implementation in Chinese and Pakistani Enterprises

Muhammad Aamir Obaid Khattak (Dongling School of Economics and Management, University of Science and Technology Beijing (USTB), Beijing, China), Yuanguan She (Dongling School of Economics and Management, University of Science and Technology Beijing (USTB), Beijing, China), Zahid A. Memon (School of Management and Economics, Beijing Institute of Technology (BIT), Beijing, China), Nausheen Syed (School of Economics and Management, Beijing Jiaotong University (BJTU), Beijing, China), Shariq Hussain (School of Computer and Communication Engineering, University of Science and Technology Beijing (USTB), Beijing, China) and Muhammad Irfan (Dongling School of Economics and Management, University of Science and Technology Beijing (USTB), Beijing, China)
Copyright: © 2013 |Pages: 38
DOI: 10.4018/jeis.2013070103
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Abstract

Carrying with itself the most effective, efficient & cross-functional integrative capabilities, the importance in adoption & usage of ERP systems has significantly increased in vibrant and dynamically responding business settings of today. This study attempts to present the ERP system’s implementation success in terms of organizational impact, on time and under allocated budget by qualitatively examining relationship of each of the identified critical success factors (CSFs) to project’s implementation success in enterprises of a developing country, China, by using validated responses from 12 organizations, using a questionnaire survey approach. Summary of survey’s results are then presented in a tabular form to get a clearer view of the impact of CSFs during ERP system implementation. Findings confirm that 10, 9 and 1 out of the 20 proposed factors that are identified from the literature are critical, least critical & not critical respectively. Findings are then compared, in brief, with the enterprises of another developing country, Pakistan, to check for the similarities & differences. This study intends to enrich understanding on the most significant factors to trim down chances of failure regarding ERP project implementation success and is anticipated to contribute to the on hand body of knowledge in this regard.
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Introduction

Rapidly changing business settings or environments worldwide, internationalization of operations as well as economic globalization are pressing hard in stimulating enterprises across the globe to opt for effective operational as well as strategic initiatives to create, achieve and sustain a long term competitive advantage by effectively integrating its suppliers, customers and partners in achieving the objective of integrated supply chains. In pursuing this, implementation of information systems such as Enterprise Resource Planning (ERP) make easy the desired level of integration (Yusuf et al., 2004) and due to increase in its adoption by the companies in the current state indicates that the potential benefits of supply chain management and integration is about to be unleashed to a significant extent (Moller, 2005; McGaughey & Gunasekaran, 2007). The use of information and communication technologies like ERP system has profoundly increased in the vibrant organizations of today due to its intra- and inter-organizational integration capability & functionality, streamlining of business operations, improving information flow, enhancing business flexibility and replacement of the old aging & incompatible legacy information systems. Kuppusamy et al. (2009) found that application of such technologies are supportive; in making an enterprise more flexible to adapt and respond effectively to the rapid changes occurring in the dynamic business environments, in streamlining and integrating various business processes or operations, and in improving the flow of information throughout an enterprise.

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