With the rapid development of the IT technology over the past decade, many companies have adopted ERP systems as a survival strategy. However, in spite of the investment in time and the high cost, some implementation of ERP systems rather hindered the...
With the rapid development of the IT technology over the past decade, many companies have adopted ERP systems as a survival strategy. However, in spite of the investment in time and the high cost, some implementation of ERP systems rather hindered the business by a failed adoption and operation. There are several reasons in the failure of the ERP system introduction. For example, the absence of the management strategy regarding the ERP system adoption, the lack of interests and capacities for the system within the organization, and the failure in finding the appropriate ERP system for the organization can lead to the failure.
Many previous researches on the ERP system have focused on the successful aspect of the ERP system, mostly in the scope of manufacturing and profit-making businesses. These researches have overlooked two aspects. Firstly they ignored that ERP systems vary by the characteristics of organizations. Secondly, they did not pay attention to the fact that there is a variation in the performance of ERP systems.
In this thesis I categorized the success factors of ERP systems into three types, i.e., the internal factor, the external factor and the process factor and then analyzed them by using the characteristics of the organizations as moderating variables. And the performance of ERP systems is measued by the organization type, the business field, and the size to observe the moderating effect of the characteristics of the organization.
To that end, this study designed the research model by setting the ERP system success factor as independent variables, the performance of the ERP system introduction as a dependent variable, and the characteristics of the organization as moderating variables. To investigate what impact the independent variable has on the dependent variable, and what impact the moderating variable has on the dependent and independent variables, this study conducted a questionnaire survey for the IT staffs, managers, and executives of the organizations that had introduced ERP systems. The 127 responded answer sheets were used for the statistical analysis.
To prove the research hypothesis, it tested the reliability and validity of the measurement methods, and analyzed the correlations among related variables with the factor analysis. Lastly, I tried to prove the hypothesis of this study by applying the multiple regression analysis on the research model.
The analysis results are summarized in the following.
Firstly, the internal factor of ERP systems has a strong positive (+) correlation with the performance of the ERP system introduction.
Secondly, the external factor of ERP systems has a strong positive (+) correlation with the performance of the ERP system introduction.
Thirdly, the process factor of ERP systems has a strong positive (+) correlation with the performance of the ERP system introduction.
Fourthly, the moderating effect by the organization type did not show correlation with the impact of the ERP system success factors on the ERP system performance.
Fifthly, the moderating effect by the business field is that the manufacturing sector was more influenced than the non-manufacturing sector in the internal factor whereas in the process factor, the non-manufacturing sector was influenced more. However, in the external factor, there was no variation by the business field.
Sixthly, the moderating factor by size in the impact of ERP system success factors on the ERP system performance showed that the mid-sized company was influenced more only in the external factor. In the internal and process factors, the performance was independent from the moderating effect of the size.
In comparison with the previous studies, this study analyzed the moderating effects by the organization type, the business field, and the organization size in measuring the impact of the ERP system success factor on the ERP system performance. By doing that, it seeks to contribute to the effective resource management of organizations by providing the success factors that lead to the ERP system performance upon or after the introduction of the ERP system.