Implementation critical success factors (CSFs) for ERP: Do they contribute to implementation success and post-implementation performance?

• Published in: International journal of production economics Vol. 144; no. 1; pp. 157 - 174
• Main Authors: Ram, Jiwat, Corkindale, David, Wu, Ming-Lu
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.07.2013; Elsevier Sequoia S.A
• Subjects: Business process re-engineering; Critical success factors (CSFs); Dependent variables; Economics; Empirical analysis; Enterprise resource planning; Enterprise resource planning (ERP); Implementation of enterprise systems; Information system success; Mathematical analysis; Mathematical models; Operations research; Organizational performance; Performance enhancement; Project management; Structural equation modeling (SEM); Studies; Success factors; System integration; Training and education; Implementation of enterprise systems; Project management; Structural equation modeling (SEM); System integration; Critical success factors (CSFs); Enterprise resource planning (ERP); Organizational performance; Business process re-engineering; Information system success; Training and education
• ISSN: 0925-5273; 1873-7579
• DOI: 10.1016/j.ijpe.2013.01.032

Frequent commentaries in the literature have stated that certain critical success factors (CSFs) have to be accomplished in an organisation for an enterprise resource planning (ERP) system project to be successful. In this study we argue and demonstrate empirically that success in implementing an ERP system and in gaining performance improvement should be conceptualised as two separate dependent variables. The distinction is made because the former aspect is based upon project delivery outcomes, while the latter assesses post-ERP project performance. We question whether some factors labelled as ‘critical’ success factors for ERP projects are in practice actually critical for achieving success in implementation and improving output performance. To examine this we report an empirical study that has investigated whether four major CSFs are in practice critical for achieving organisational performance improvements, and the role that successful implementation may play in influencing the relationship between CSFs and improvements in organisational performance. A conceptual model was devised and then analysed using structural equation modelling based on data collected from 217 organisations. We found that some CSFs were not critical to achieve success in ERP implementation but were critical to help an organisational achieve performance improvement from an ERP system. Additionally, we also found that achieving successful ERP system implementation mediates the degree to which a CSF affects output performance improvement. The managerial and research implications of these findings are discussed and the limitations of the study noted. ► Examine whether four CSFs are critical for achieving organisational performance(OP). ► Some CSFs were not critical to implementation success (IMP) but were critical to OP. ► Some CSFs considered critical to IMP were found to be actually not critical to IMP. ► We found that IMP mediates the degree to which some CSFs affects OP. ► We demonstrate that IMP and OP should be conceptualised as two distinct variables