The Core Critical Success Factors in Implementation of Enterprise Resource Planning Systems

The Core Critical Success Factors in Implementation of Enterprise Resource Planning Systems

Payam Hanafizadeh (Allameh Tabataba’i University, Iran), Roya Gholami (Aston University, UK), Shabnam Dadbin (Allameh Tabataba’i University, Iran) and Nicholas Standage (Aston University, UK)
DOI: 10.4018/978-1-4666-1761-2.ch006
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Abstract

The Implementation of Enterprise Resource Planning (ERP) systems require huge investments while ineffective implementations of such projects are commonly observed. A considerable number of these projects have been reported to fail or take longer than it was initially planned, while previous studies show that the aim of rapid implementation of such projects has not been successful and the failure of the fundamental goals in these projects have imposed huge amounts of costs on investors. Some of the major consequences are the reduction in demand for such products and the introduction of further skepticism to the managers and investors of ERP systems. In this regard, it is important to understand the factors determining success or failure of ERP implementation. The aim of this paper is to study the critical success factors (CSFs) in implementing ERP systems and to develop a conceptual model which can serve as a basis for ERP project managers. These critical success factors that are called “core critical success factors” are extracted from 62 published papers using the content analysis and the entropy method. The proposed conceptual model has been verified in the context of five multinational companies.
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Methodology

Extracting Core CSFs

In this study, after extracting CSFs from published literature, those CSFs which were most commonly mentioned in previous research were given higher priority and were selected as the core success factor. 62 papers from international journals and conference proceeding were selected, which were published during 2000 -2009.

In the next step, 60 CSFs were extracted from these articles. Since the core CSFs are those that have been identified by the majority of previous papers, the frequency of CSFs (the number of times that a CSF appears in the selected articles) is an appropriate criterion for extracting them. Thus, content analysis, a quantitative approach─ counting the frequency of phenomena within a case in order to gauge its importance compared with other cases (Walliman, 2001), was employed. The Entropy method which quantifies the frequency of CSFs to the values that can be used for determining their degree of importance was utilized in the next step. In other words, when a CSF has been frequently identified by previous studies, it must be highly correlated with the level of importance and can be selected as a candidate for the core CSFs. We should also mention that, two CSFs with different titles but the same definition were assumed identical.

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