Factors Influencing the Success of an ERP System: A Study in the Context of an Agricultural Enterprise in Thailand
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Keywords:
enterprise resource planning (EPR) critical success factors (CSF) information and system
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Abstract
The study examined factors in user satisfaction with ERP implementation pig farming and processing organization in northern Thailand. The target population included ERP users and government advisers involved with its implementation. A theoretical model with six determinants (Business Process of Reengineering, Top Management Support, Education and Training, Information Quality, System Quality and Perceived Usefulness) of User Satisfaction was developed. Data was collected using a questionnaire (n =228). From a theoretical perspective the findings supported most of those in previous studies whereby Top Management Support had the greatest effect on User Satisfaction followed in order by Perceived Usefulness, System Quality, and Information Quality while Business Process Reengineering and Education and Training had relatively small effects on User Satisfaction. New findings showed that contrary to those in previous studies: Top Management Support and Education and Training did not have significant effects on System Quality; Business Process Engineering only had significant indirect effects on Perceived Usefulness and User Satisfaction; and Education and Training only had a significant indirect effect on User Satisfaction. From a practical perspective the findings enabled the formulation of a hierarchy of objectives aimed at increasing user satisfaction each with an associated hierarchy of actions.
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Duangekanong, S. (2014). Factors Influencing the Success of an ERP System: A Study in the Context of an Agricultural Enterprise in Thailand. Science, Engineering and Health Studies, 8(1), 18–45. https://doi.org/10.14456/sustj.2014.4
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Research Articles
References
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Ke, W. and Wei, K. K. (2008). Organizational culture and leadership in ERP implementation. Decision Support Systems, 45(2): 208-218.
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Seddon, P. B. and Kiew, M. -Y. (1996). A partial test and development of Delone and McLean’s model of IS success. Australian Journal of Information Systems, 4(1): 90-109.
Simon, P. (2010). The Next Wave of Technologies: Opportunities from Chaos. John Wiley & Sons, London.
Sobel, M. E. (1986). Some new results on indirect effects and their standard errorsin covariance structure models, In N. B. Tuma (Ed.), Sociological Methodology, San Francisco, Jossey-Bass, 159-186.
Straub, D., Boudreau, M-C., Gefen, D., (2004). Validation Guidelines for IS Positivist Research, Communications of the Association of Information Systems, 13: 380-427.
Suebsin, C. and Gerdsri, N. (2009) Key factors driving the success of technology adoption: Case examples of ERP adoption. PICMET 2009 Proceedings, (pp. 2638-2643). Portland, Oregon, US.
Swamidass, P. M. (Ed.). (2000). Encyclopedia of Productionand Manufacturing Management.Springer, London.
Umble, E. J., Haft, R. R., and Umble, M. M. (2003). Enterprise resource planning: Implementation procedures and critical success factors. European Journal of Operational Research, 146: 241-257.
Xue, Y., Liang, H., Boulton, W. R., and Snyder, C. A. (2005). ERP implementation failures in China: Case studies with implications for ERP vendors. International Journal of Production Economics, 97: 279-295.
Yusuf, Y., Gunasekaran, A., and Abthorpe, M. S. (2004). Enterprise information systems project implementation: A case study of ERP in Rolls-Royce. International Journal of Production Economics, 87: 251-266.
Aldammas, A. and Al-Mudimigh, A. S. (2011). Critical success and failure factors of ERP implementations: Two cases from Kingdom of Saudi Arabia. Journal of Theoretical and Applied Information Technology, 28(2): 73-82.
Arunthari, S. and Hasan, H. (2005). A grounded study of ERP adoption and vendor selection in Thailand. ACIS 2005 Proceedings, (p. Paper 3).
Cohen, J. (1988) Statistical Power Analysis for the Behavioral Sciences, 2nd ed., Academic Press, New York.
Cohen, J. and Cohen, P. (1983). Applied Multiple Regression/correlation Analysis for the Behavioral Sciences, 3rd ed., Mahwah, NJ, Erlbaum.
Davis, F. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology, MIS Quarterly: Management Information Systems, 13: 319-339
DeLone, W. H. and McLean, E. R. (1992). Information systems success: The quest for the dependent variable. Information Systems Research, 3: 60-95.
DeLone, W. H. and McLean, E. R. (2003). The DeLone and McLean model of information systems success: A ten-year update. Journal of Management Information Systems, 19(4): 9-30.
Eardley, A., Shah, H., and Radman, A. (2008). A model for improving the role of IT in BPR. Business Process Management Journal, 14(5): 629-653.
Ehie, I. C. and Madsen, M. (2005). Identifying critical issues in enterprise resource planning (ERP) implementation. Computers in Industry 56: 545-577.
Finney, S. and Corbett, M. (2007). ERP implementation: A compilation and analysis of critical success factors. Business Process Management Journal, 13(3): 329-347.
George, D., Mallery, P., (2003). SPSS for Windows step by step: A simple guide and reference. 11.0 update, Allyn and Bacon, Boston.
Hawari, A. and Heeks, R. (2010). Explaining ERP failure in developing countries: A Jordanian Case Study. Working Paper. Manchester, UK: Manchester Centre for Development Informatics.
Ifinedo, P. (2008). Impacts of business vision, top management support, and external expertise on ERP success. Business Process Management Journal, 14(4): 551-568.
Israel, G. (2013). Determining sample size. [Online URL: www. edis.ifas.ufl.edu/pd006.] accessed on March 10, 2013.
Jiang, Y. (2005). Critical success factors in ERP implementation in Finland (Master’s thesis). Swedish School of Economics and Business Administration.
Kanthawongs, P. (2010). Organizational and cultural factors influencing ERP systems implementation in a developing country: Case studies from Thailand. IADIS International Conference e-Society 2010 (pp. 173-179).
Ke, W. and Wei, K. K. (2008). Organizational culture and leadership in ERP implementation. Decision Support Systems, 45(2): 208-218.
Kline, R. B., (2005). Principles and Practice of Structural Equation Modeling, Guilford Press, London.
Kwahk, K. and Lee, J. (2008). The role of readiness for change in ERP implementation: Theoretical bases and empirical validation. Information and Management, 45: 474-481.
Longinidis, P. and Gotzamani, K. (2009). ERP user satisfaction issues: Insights from a Greek industrial giant. Industrial Management and Data Systems, 109(5): 628-645.
Monk, E. F. and Wagner, B. J. (2008). Concepts in Enterprise Resource Planning. Cengage Learning EMEA., London.
Motwani, J., Subramanian, R., and Gopalakrishna, P. (2005). Critical factors for successful ERP implementation: Exploratory findings from four case studies. Computers in Industry, 56: 529-544.
NationMaster. (2013a). Age Distribution, Thailand. [Online URL:www.nationmaster.com/country/th/Age_distribution.] accessed on March 16, 2013.NationMaster. (2013b).
Education in Thailand. [Online URL:https://www.nationmaster.com/country/th-thailand/edu-education.] accessed on March 16, 2013.
Oliver, P. (2012). Suceeding with your literature review: A handbook for students. McGraw-Hill International, London.
Panorama Consulting. (2012). Clash of the titans: An independent comparison of SAP, Oracle, and Microsoft Dynamics. [Online URL: www.panorama-consulting.com/Documents/Clash-of-the-Titans-2012.pdf.] accessed on March 15, 2013.
Petter, S., DeLone, W., & McLean, E. (2008). Measuring information systems success: Models, dimensions, measures, and interrelationships. European Journal of Information Systems, 17: 236-263.
Seddon, P. B. (1997). A respecification and extension of the DeLone and McLean model of IS success. Information Systems Research, 8(3): 240-253.
Seddon, P. B. and Kiew, M. -Y. (1996). A partial test and development of Delone and McLean’s model of IS success. Australian Journal of Information Systems, 4(1): 90-109.
Simon, P. (2010). The Next Wave of Technologies: Opportunities from Chaos. John Wiley & Sons, London.
Sobel, M. E. (1986). Some new results on indirect effects and their standard errorsin covariance structure models, In N. B. Tuma (Ed.), Sociological Methodology, San Francisco, Jossey-Bass, 159-186.
Straub, D., Boudreau, M-C., Gefen, D., (2004). Validation Guidelines for IS Positivist Research, Communications of the Association of Information Systems, 13: 380-427.
Suebsin, C. and Gerdsri, N. (2009) Key factors driving the success of technology adoption: Case examples of ERP adoption. PICMET 2009 Proceedings, (pp. 2638-2643). Portland, Oregon, US.
Swamidass, P. M. (Ed.). (2000). Encyclopedia of Productionand Manufacturing Management.Springer, London.
Umble, E. J., Haft, R. R., and Umble, M. M. (2003). Enterprise resource planning: Implementation procedures and critical success factors. European Journal of Operational Research, 146: 241-257.
Xue, Y., Liang, H., Boulton, W. R., and Snyder, C. A. (2005). ERP implementation failures in China: Case studies with implications for ERP vendors. International Journal of Production Economics, 97: 279-295.
Yusuf, Y., Gunasekaran, A., and Abthorpe, M. S. (2004). Enterprise information systems project implementation: A case study of ERP in Rolls-Royce. International Journal of Production Economics, 87: 251-266.