ERP systems adoption: An exploratory study of the organizational factors and impacts of ERP success

  • Authors:

  • Chuck C. H. Law;Eric W. T. Ngai

  • Affiliations:

  • Department of Management and Marketing, The Hong Kong Polytechnic University, Hong Kong, PR China;Department of Management and Marketing, The Hong Kong Polytechnic University, Hong Kong, PR China

  • Venue:
  • Information and Management
  • Year:
  • 2007

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Abstract

We examined the relationships between the success of ERP system adoption, extent of business process improvement (BPI), and organizational performance and investigated the associations between the outcomes of these initiatives and such organizational factors as strategic intent, senior management support, and the status of the IT function within a company. A correlation analysis of 96 firms was made to test our hypothesis that the strategic intent to use ERP was closely related to the success of BPI, ERP, and organizational performance. The results also demonstrated that CEO-IT distance may have little direct bearing on the outcomes of ERP and BPI initiatives. A closer CEO-IT reporting relationship, however, was found to be associated with higher levels of senior management support for both types of enterprise projects. This empirical evidence reinforced the long-held assumption that organization-level benefits, BPI, and ERP success were closely related; and that these relationships were subject to the influence of the organizational variables.