The critical success factors for ERP implementation: an organizational fit perspective

• Published in: Information & management Vol. 40; no. 1; pp. 25 - 40
• Main Authors: Hong, Kyung-Kwon, Kim, Young-Gul
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.10.2002; Elsevier Science; Elsevier Sequoia S.A
• Subjects: Applied sciences; Computer science; control theory; systems; Enterprise resource planning; ERP adaptation; ERP implementation; Exact sciences and technology; Information systems. Data bases; Memory organisation. Data processing; Organizational change; Organizational fit; Organizational resistance; Process adaptation; Software; Studies; Technological change; ERP adaptation; Process adaptation; ERP implementation; Organizational resistance; Organizational fit; Information system; Firm management; Purchases; Resource management; Integrated management; Implementation; Adaptation
• ISSN: 0378-7206; 1872-7530
• DOI: 10.1016/S0378-7206(01)00134-3

Since early 1990s, many firms around the world have shifted their information technology (IT) strategy from developing information systems in-house to purchasing application software such as enterprise resource planning (ERP) systems. IT managers responsible for managing their organization’s ERP implementation view their ERP systems as their organizations’ most strategic computing platform. However, despite such strategic importance, ERP projects report an unusually high failure rate, sometimes jeopardizing the core operations of the implementing organization. This study explores the root of such high failure rate from an “organizational fit of ERP” perspective. Based on the relevant literature, we define the concept of organizational fit of ERP and examine its impact on ERP implementation, together with ERP implementation contingencies. The results from our field survey of 34 organizations show that ERP implementation success significantly depends on the organizational fit of ERP and certain implementation contingencies.