Assessment and control of software risks
Assessment and control of software risks
Software Magazine - Client/Server Computing special edition
Putting the enterprise into the enterprise system
Harvard Business Review
E-business: roadmap for success
E-business: roadmap for success
Enterprise resource planning: introduction
Communications of the ACM
A Step-by-Step Approach to Using the SAS System for Factor Analysis and Structural Equation Modeling
A Step-by-Step Approach to Using the SAS System for Factor Analysis and Structural Equation Modeling
Trust and Loyalty in Electronic Commerce: An Agency Theory Perspective
Trust and Loyalty in Electronic Commerce: An Agency Theory Perspective
The critical success factors for ERP implementation: an organizational fit perspective
Information and Management
Assessing the Risk of IT Outsourcing
HICSS '98 Proceedings of the Thirty-First Annual Hawaii International Conference on System Sciences-Volume 6 - Volume 6
Rethinking ERP-Outsourcing Decisions for Leveraging Technological and Preserving Business Knowledge
HICSS '02 Proceedings of the 35th Annual Hawaii International Conference on System Sciences (HICSS'02)-Volume 8 - Volume 8
Designing Effective Incentive-Oriented Outsourcing Contracts for ERP Systems
HICSS '02 Proceedings of the 35th Annual Hawaii International Conference on System Sciences (HICSS'02)-Volume 8 - Volume 8
Enterprise systems for organizational decision support: an examination of objectives, characteristics, and benefits
Puzzles in software development contracting
Communications of the ACM - Information cities
ERP plans and decision-support benefits
Decision Support Systems
Moral Hazard, ethical considerations, and the decision to implement an information system
Journal of Management Information Systems
Computers and Operations Research
Journal of Management Information Systems
Risk management in ERP project introduction: Review of the literature
Information and Management
An Integrated Performance Model Information Systems Projects
Journal of Management Information Systems
Examining the critical success factors in the adoption of enterprise resource planning
Computers in Industry
The influence of governance equilibrium on ERP project success
Decision Support Systems - Special issue: Economics and information systems
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Enterprise resource planning (ERP) systems are rapidly becoming the foundations to the decision support systems of many organizations, but have all too often failed to deliver their expected benefits. Most ERP implementation projects are carried out using implementation consultants hired from outside the client firm. The current study treated the consultants as agents and the clients as principals, and applied agency theory to test the consultant-client relationship as a predictor of ERP implementation project success. A survey collected responses from 192 client project managers who worked on the ERP implementation process in their organizations. Data analysis via structural equation modeling showed that more consultant monitoring predicts less moral hazard (i.e., consultant shirking), that less moral hazard predicts greater ERP project success, and that more monitoring directly predicts such success. However, the analysis failed to support expectations that more pre-qualification efforts (i.e., screening of the consultant) would lead to less adverse selection (i.e., the consultant's misrepresentation of skills) or that less adverse selection would lead to greater ERP success. Surprisingly greater incentive alignment predicted greater moral hazard, thus suggesting the potential of incentives to de-motivate rather than motivate. This study contributed by extending agency theory to outsourced information systems project implementation. It provided new, validated measures of prequalification efforts, monitoring, incentive alignment, moral hazard, and adverse selection constructs. The findings suggest that future researchers may want to learn more about incentive alignment and its impact, and that information systems project managers may want to monitor more to improve ERP and other large-scale system implementation success.