ERP Systems Implementation Determinants and Success Measures in China: A Case Study Approach

Abstract

With the growing intensive global competition and integration of the world economy, manufacturing firms have to reduce inventory level and operation costs, improve customer service to obtain competitive advantage against their competitors. Manufacturing companies are forced to adopt new methods to achieve the above objectives. Enterprise resource planning (ERP) system is one of the most widely accepted choices. Significant benefits such as improved customer service, better production scheduling, and reduced manufacturing costs can accrue from the successful implementation of ERP (Ang et al, 1995). However, the successful implementation rate is extremely low especially in China and many firms didn’t achieve intended goals. Thus, it’s necessary for ERP practitioners and researchers to investigate the reasons why the implementation success rate of ERP systems in China is so low. Prior studies mainly focus on critical success factors or single ERP implementation success measure without theoretical support. This study attempts to combine Ives, Hamilton, and Davis (1980) MIS research model and DeLone & McLean’s (1992) IS success model to develop an ERP implementation success model, identifying both generic and unique factors that affect ERP systems implementation success in China and using multiple ERP implementation success measures to assess whether an ERP implementation is a success or failure.