Factors affecting post-implementation success of enterprise resource planning systems: a perspective of business process performance

ABSTRACT

The study investigates critical factors which are important to evaluate enterprise resource planning (ERP) in the post-implementation stage. A conceptual framework is proposed with a set of relevant hypotheses and a structural equation modeling is used to analyze the survey data using Smart-PLS package program. The results illustrate that post-implementation success factors are significant for assessing an overall impact of ERP post-implementation. Likewise, the possibility of business process performance is higher in a condition of when the systems are employed in a coordinated way. The findings may assist ERP professionals and developers in other countries for ERP implementation in future.     

Enterprise resource planning (ERP) implementation using the value engineering methodology and Six Sigma tools

Enterprise resource planning (ERP) is a software solution that integrates the operational processes of the business functions of an enterprise. However, implementing ERP systems is a complex process. In addition to the technical issues, companies must address problems associated with business process re-engineering, time and budget control, and organisational change. Numerous industrial studies have shown that the failure rate of ERP implementation is high, even for well-designed systems. Thus, ERP projects typically require a clear methodology to support the project execution and effectiveness. In this study, we propose a theoretical model for ERP implementation. The value engineering (VE) method forms the basis of the proposed framework, which integrates Six Sigma tools. The proposed framework encompasses five phases: knowledge generation, analysis, creation, development and execution. In the VE method, potential ERP problems related to software, hardware, consultation and organisation are analysed in a group-decision manner and in relation to value, and Six Sigma tools are applied to avoid any project defects. We validate the feasibility of the proposed model by applying it to an international manufacturing enterprise in Taiwan. The results show improvements in customer response time and operational efficiency in terms of work-in-process and turnover of materials. Based on the evidence from the case study, the theoretical framework is discussed together with the study’s limitations and suggestions for future research.     

The influence of knowledge management and professionalization on the use of ERP systems and its effect on the competitive advantages of SMEs

ABSTRACT

Although the literature on Enterprise Resource Planning (ERP) systems emphasizes the importance of knowledge management and professionalization in the use of these systems, the factors that mediate these relationships are not sufficiently developed in SMEs. This study proposes the adequate application of knowledge management and professionalization would help to improve the use of ERP systems. The research uses the structural equation approach based on PLS-SEM technique with a sample of 137 Spanish SMEs. The results show that professionalization and knowledge management significantly affect the use of ERP, as well as imply a mediating effect on the competitive advantages of the SMEs.

Abbreviations: ERP: Enterprise Resource Planning; SMEs: Small and Medium Enterprises; PLS: Partial Least Squares; SEM: Structural Equation Modelling     

Identification of approximately duplicate material records in ERP systems

The quality of master data is crucial for the accurate functioning of the various modules of an enterprise resource planning (ERP) system. This study addresses specific data problems arising from the generation of approximately duplicate material records in ERP databases. Such problems are mainly due to the firm’s lack of unique and global identifiers for the material records, and to the arbitrary assignment of alternative names for the same material by various users. Traditional duplicate detection methods are ineffective in identifying such approximately duplicate material records because these methods typically rely on string comparisons of each field. To address this problem, a machine learning-based framework is developed to recognise semantic similarity between strings and to further identify and reunify approximately duplicate material records – a process referred to as de-duplication in this article. First, the keywords of the material records are extracted to form vectors of discriminating words. Second, a machine learning method using a probabilistic neural network is applied to determine the semantic similarity between these material records. The approach was evaluated using data from a real case study. The test results indicate that the proposed method outperforms traditional algorithms in identifying approximately duplicate material records.     

Method of evaluating the impact of ERP implementation critical success factors – a case study in oil and gas industries

The so far implemented enterprise resource planning (ERP) systems have in many cases failed to meet the requirements regarding the business process control, decrease of business costs and increase of company profit margin. Therefore, there is a real need for an evaluation of the influence of ERP on the company's performance indicators. Proposed in this article is an advanced model for the evaluation of the success of ERP implementation on organisational and operational performance indicators in oil–gas companies. The recommended method establishes a correlation between a process-based method, a scorecard model and ERP critical success factors. The method was verified and tested on two case studies in oil–gas companies using the following procedure: the model was developed, tested and implemented in a pilot gas–oil company, while the results were implemented and verified in another gas–oil company.     

Measuring Corporate Environmental Performance: A Methodology for Sustainable Development

Assessing corporate environmental performance (CEP) that is both comprehensive and consistent with sustainable development both for society and companies, while at the same time taking heed of the facts and interests of each stakeholder, is not a simple feat. Due to the multidimensional character of the sustainability concept, several questions must be considered in the evaluation process: (i) the qualitative nature of indicators and the complexity of developing a synthetic index; (ii) the difficulty of choosing properly statistical techniques for aggregation and (iii) the difficulty of introducing stakeholders’ preferences in the assessment models. This paper is an attempt to address this challenge by developing a framework for the assessment of CEP, based on the application of a fuzzy multi‐criterion decision‐making (MCDM) method. To achieve positive scores in a CEP assessment, an organization should be strategically committed and engage in environmental management and governance structures that are translated into good results in terms of both engagement and operational performance. Unless such premises are explicitly incorporated into the assessment criteria, the results would reveal that the CEP measurement could not be brought into a line with an earnest ambition of achieving true sustainable development. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Collaboration,Co-Production,Networks: Convergence of theories

Abstract

This article suggests a framework to study service delivery networks that draws on the theories of collaboration, co-production, and networks combined. We introduce four dimensions of co-production under ‘coproduction-oriented collaborations’. This framework allows us to ‘zoom in and zoom out’ when we study networks. Using the case method approach, the framework is applied to analyse four networks in Singapore. Findings suggest that network process, network structure, and characteristics of actors are crucial to a network’s performance and coproduction’s effectiveness. This article also offers implications for practice that in certain contexts the usage of these concepts is for managerial effectiveness and not for enhancing democratic values.     

A method for improving ERP implementation success by the principles and process of user-centred design

Enterprise resource planning (ERP) systems are implemented to increase the productivity and operational efficiency of companies. However, the implementation activities and changes within operational processes pose a temporary threat to productivity. Reported difficulties in implementation projects frequently relate to organisational and human-centred issues; like the ability and motivation of the organisation to accept the new ERP system. User-centred design (UCD) is a multidisciplinary process that aims at improving human working conditions by early user involvement in the system design, e.g. user observation or usability testing. UCD was originally developed for the design of interactive computer systems. The underlying question for this research is how the principles and process of UCD can be applied to ensure the usability of an ERP system. This article presents: first, a literature review of ERP implementations; second, a literature review of UCD applications; third, a method to combine the UCD and ERP system implementation processes; and finally a discussion of the UCD approach for ERP implementation.     

The Value-Relevance of Financial Statement Recognition versus Note Disclosure: Evidence from Goodwill Accounting

This paper aims to examine how the adoption of a new Enterprise Resource Planning (ERP) system challenges the definition of the expertise and roles of accountants within organizations, leading to new, hybrid positions. By drawing on structuration theory, we propose to conceptualize the potential change in accountants' practices and positions as a structuration process, and ERP systems as modalities of structuration, providing new interpretive schemes, norms and co-ordination and control facilities, which influence the direction of hybridization between accountants and other professional groups. Since the results of this process are neither predictable a priori, nor generalizable, we are convinced that detailed interpretive case studies of ERP implementations are needed to understand their complex impacts on accountants. Hence, we provide one such study in order to explore the 'ambiguous' and often inconsistent consequences for accountants deriving from the adoption of an ERP system.     

Environmental NGO–business collaboration and strategic bridging: a case analysis of the Greenpeace–Foron Alliance

Environmental NGO–business collaborative partnerships, commonly called green alliances, are encouraging corporate enviropreneurship, entrepreneurial innovations that address environmental problems and result in operational efficiencies, new technologies and marketable ‘green’ products. Aside from offering environmental, scientific and legal expertise, environmental NGOs can provide linkages to other societal stakeholders, referred to as strategic bridges, to support enviropreneurial initiatives. This article focuses on the linkage capabilities of environmental NGOs by developing an extended strategic bridging framework that articulates necessary process contingencies and engagement strategies for building effective bridges with environmental stakeholders. Propositions are advanced and tested in an analysis of the alliance between Greenpeace and Foron Household Appliances in Germany during 1992–93 for the marketing of an environmentally responsible refrigerator. Stakeholder characteristics and partnership outcomes reveal managerial implications and conceptual extensions of strategic bridging in green alliances, and future research directions are discussed. Copyright © 2000 John Wiley & Sons, Ltd and ERP Environment     

Performance of the internal audit department under ERP systems: empirical evidence from Taiwanese firms

In this study, the performance of the internal audit department (IAD) and its contribution to a company under enterprise resource planning (ERP) systems was examined. It is anticipated that this will provide insight into the factors perceived to be crucial to a company’s effectiveness. A theoretical framework was developed and tested using the sample of Taiwanese companies. Using mail survey procedures, we elicited perceptions from key internal auditors about the ERP system and auditing software, as well as their opinions concerning the IAD’s effectiveness and its contribution within a company. Data were analysed using the partial least square (PLS) regression to test the hypotheses. Drawing upon a sample of Taiwanese firms, the study suggests that a firm can improve the performance of the IAD through an enterprise-wide integrated, effective ERP system and appropriate auditing software. At the same time, the performance of the IAD can also contribute significantly to the company. The results also show that investments in computer-assisted auditing techniques (CAATs) are crucial due to their tremendous effectiveness in regard to the performance of the IAD and for the contributions CAATs can make to a company.     

A Motivation-Experience-Performance Model to Understand Global Consumer Behavior on the Internet

Abstract

This study determines that the consumer motivations to the Internet uses are almost universal across cultures, and consumers' needs in Internet uses are a set of hierarchical needs beginning with the most importance: e-mail, information search, chatting, professional works, and e-commerce. The three basic elements in Internet consumer behavioral process are motivations, experience, and performance. Therefore, the ways to motivate consumers are the same for different cultures—to facilitate consumer experience through communication and community, and to increase consumer performance through web transaction experiences. By developing such a framework, this research suggests an aggregate process model of consumer behavior on the Internet and discusses its potential usages and limitations.     

Estimating the impact of enterprise resource planning project management decisions on post-implementation maintenance costs: a case study using simulation modelling

Organisations often make implementation decisions with little consideration for the maintenance phase of an enterprise resource planning (ERP) system, resulting in significant recurring maintenance costs. Poor cost estimations are likely related to the lack of an appropriate framework for enterprise-wide pre-packaged software maintenance, which requires an ongoing relationship with the software vendor (Markus, M.L., Tanis, C., and Fenema, P.C., 2000 Markus, M. L., Tanis, C. and Fenema, P. C. 2000. Multisite ERP implementation. CACM, 43(4): 42–46. [Crossref], [Web of Science ®] , [Google Scholar]. Multisite ERP implementation. CACM, 43 (4), 42–46). The end result is that critical project decisions are made with little empirical data, resulting in substantial long-term cost impacts. The product of this research is a formal dynamic simulation model that enables theory testing, scenario exploration and policy analysis. The simulation model ERPMAINT1 was developed by combining and extending existing frameworks in several research domains, and by incorporating quantitative and qualitative case study data. The ERPMAINT1 model evaluates tradeoffs between different ERP project management decisions and their impact on post-implementation total cost of ownership (TCO). Through model simulations a variety of dynamic insights were revealed that could assist ERP project managers. Major findings from the simulation show that upfront investments in mentoring and system exposure translate to long-term cost savings. The findings also indicate that in addition to customisations, add-ons have a significant impact on TCO.     

Industry-oriented enterprise resource planning

General purpose enterprise resource planning (ERP) systems have problems such as complex configuration processes, low adaptation to specific industries, and an extensive implementation time period. In order to alleviate these issues, this paper proposes the concept of industry-oriented ERP (IERP) and a component-based approach to IERP development. This paper also presents the framework of developing IERP in which business process modelling and software reuse are employed as primary methods to improve the operability of component-based IERP. The framework consists of five layers including server layer, team work supporting layer, IERP construction and customisation layer, reusable assets and toolset layer, and the IERP system instance layer. These layers as well as their relationship with each other are also discussed.     

Toward A Place‐Based Understanding of Business Sustainability: The Role of Green Competitors and Green Locales in Firms' Voluntary Environmental Engagement

Management research has extensively considered who, what, when, why, which and how aspects pertaining to firms' voluntary environmental practices, yet the where aspect, which would consider the role of a firm's location on its environmental practices, has received remarkably less attention. We explore three research questions relating social and physical attributes of a firm's location with its engagement in a voluntary environmental program (VEP). Drawing on a sample of hotels participating in a Costa Rican VEP, we find that the number of VEP certified competitors (i.e. green competitors) and firm proximity to a sacrosanct environment (i.e. a green locale) are positively related to a firm's level of VEP engagement. We also find an interaction effect such that the relationship between the number of VEP certified competitors and the level of VEP engagement is positively moderated by firm proximity to a green locale. We argue that firms' voluntary environmental engagement can be enhanced by developing green clusters amid green corridors. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Internationalization of Chinese banking and financial institutions: a fuzzy-set analysis of the leader-TMT dynamics

Abstract

Received international business and international human resource management theories have generally reached a consensus on the important role of leader and top management teams (TMTs) in deciding and shaping the firm’s internationalization process. However, what remains unclear is how a well-functioning TMT is formed to effectively achieve the desired internationalization goal. Utilizing a unique sample of Chinese banking and finance institutions’ initial public offering overseas, this study explores how Chinese BFIs configure the leader-TMT dynamics to achieve high internationalization performance. Using a set-theoretic approach and the technique of fuzzy-set qualitative comparative analysis, a distinct taxonomy of the leader-TMT dynamics (namely, grass-root, strategic executor, born-global and glocal) is developed. Our findings provide novel insights into the IHRM variations within Chinese BFIs’ TMT formation, based on a theoretically and methodologically extended leader-TMT dynamics perspective.     

From disruptions to struggles: Theorizing power in ERP implementation projects

Enterprise resource planning (ERP) implementation projects often fail to achieve their objectives. These often problematic projects are frequently the setting for intense and growing power struggles. Existing studies (e.g., Boonstra, 2006; Shepherd, Clegg, & Stride, 2009) have provided researchers with insights about issues of power in these projects. However, existing research has yet to provide a comprehensive picture of power in these projects or insights on how this picture changes with the passage of time. Clegg's (1989) circuits of power framework provides a useful tool for developing this needed comprehensive picture. We use the circuits of power framework as a tool for categorizing existing literature on power in ERP implementations. More importantly, we draw on this framework to provide a comprehensive view of power in the particular context of these projects. Specifically, we analyze the power relations during the implementation of an ERP in an organization. We do so by identifying how disturbances to the circuits of power – power struggles – arise and intensify during the implementation of the ERP. In this way, our work makes both a theoretical and an empirical contribution to the study of power in ERP implementation projects.     

Coping with functional collective action dilemma: functional fragmentation and administrative integration

ABSTRACT

Functional fragmentation among city departments has been a critical public administration problem in practice and theory. This paper investigates the political and administrative motivations for the reform from functionally fragmented water governance model towards an integrative agency design. Drawing on the Institutional Collective Action (ICA) framework and the literature on bureaucratic structures, we hypothesize that cities’ decisions for administrative reform are influenced by different types of transactions costs incurred in the negotiation process among local agencies. Empirical results of this study provide strong support for the transaction cost hypotheses on the roles of bargaining cost, enforcement cost, and information cost.     

Greenwashing Revisited: In Search of a Typology and Accusation‐Based Definition Incorporating Legitimacy Strategies

Is greenwashing a concept describing companies using misleading communication or is it co‐constructed in the eye of the beholder? By discussing the literature, we find that existing definitions of greenwashing overemphasize the strategic intention to mislead and do not incorporate unjust allegations. Then, by combining signaling theory with legitimacy theory, we frame the communication process of the greenwashing accusation and the emergence of a negative narrative caused by the accusation and its effect on legitimacy. Hence, in this paper we argue that greenwashing epistemologically is constituted in the eye of the beholder , depending on an external accusation. Following this view, the greenwashing accusation is understood as a distortion factor altering the signal reliability of green messages. Based on our conceptual analysis, we provide a conceptual framework introducing a new typology of case‐based greenwashing (greenwashing , false greenwashing , potential greenwashing and no greenwashing ) and the effects of these types on corporate legitimacy. Finally, we propose a revised definition of greenwashing as co‐creation of an external accusation toward an organization with regard to presenting a misleading green message. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Social Resources

Abstract

This paper advances the ideas that host country nationals, i.e., patriates, constitute an important part of the social environment of an expatriate. Social network theory is used to provide a framework from which to examine expatriate-patriate relationships on the individual, dyad, and group levels. Specifically, it is proposed that expatriate-patriate links, as well as characteristics of the social group in which the expatriate exists, contribute to expatriate effectiveness through their help with shaping work and nonwork networks of information and contacts. It is also recommended that where appropriate, patriate expertise be incorporated into human resource decisions related to the expatriation process. Suggestions on how to accomplish this integration are also offered.